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STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
GERTZ PLAZA
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
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IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:
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VARI0US TENANTS OF
45 THAYER STREET, RENT ADMINISTRATOR'S
DOCKET NO.:
PETITIONER CH 530097-OM
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On August 13, 1991 various tenants at the above-named address
filed a petition for administrative review of an order issued on
August 8, 1991, by a Rent Administrator concerning the building
known as 45 Thayer Street, New York, New York, wherein the Rent
Administrator determined that the owner was entitled to a rent
increase based on major capital improvements (MCI).
The Commissioner has reviewed all of the evidence in the record
and has carefully considered that portion of the record relevant
to the issues raised by the petition for review.
The owner commenced this proceeding on August 10, 1988 by filing
an application for a rent increase based on major capital
improvements, to wit - apartment windows and roof bulkhead doors
at a total cost of $53,331.00.
On January 12, 1989, the Division of Housing and Community
Renewal (DHCR) served each tenant with a copy of the application
and afforded the tenants the opportunity to review it and comment
thereupon.
Two of the petitioning tenants filed objections. One claimed
economic hardship and the other raised unrelated apartment ser-
vice issues. Twenty-nine of the remaining thirty-one petitioners
did not file any objections to the owner's application although
afforded the opportunity to do so.
On August 8, 1991, the Rent Administrator issued the order here
under review finding that the installations qualified as major
capital improvements, determining that the application complied
with the relevant laws and regulations based upon the supporting
documentation submitted by the owner, and allowing appropriate
rent increases for rent controll d and rent stabilized apart-
ments.
In their petition for administrative review, the tenants request
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modification of the Rent Administrator's order and allege that
the boiler does not work properly and that there is inadequate
heat and hot water.
After careful consideration the Commissioner is of the opinion
that this petition should be denied.
Rent increases for major capital improvements are authorized by
Section 2202.4 of the Rent and Eviction Regulations for rent
controlled apartments and Section 2522.4 of t e Rent Stabiliza-
tion Code for rent stabilized apartments. Under rent control, an
increase is warranted where there has been since July 1, 1970 a
major capital improvement required for the operation, preserva-
tion, or maintenance of the structure. Under rent stabilization,
the improvement must generally be building-wide; depreciable
under the Internal Revenue Code, other than for ordinary repairs;
required for the operation, preservation, and maintenance of the
structure; and replace an item whose useful life has expired.
The Commissioner notes that the issue of heat and hot water in
the building is unrelated to the installations which were the
subject of the Rent Administrator's proceeding. It is addition-
ally noted not one of the thirty-one petitioning tenants raised
the issue of inadequate heat and hot water when this proceeding
was pending before the Rent Administrator, although they were all
afforded the opportunity to do so. Further, twenty-nine of the
petitioners raised no objection whatsoever before the Rent Admin
istrator. Accordingly, the Commissioner finds, pursuant to
Section 2529.6 of the Rent Stabilization Code and prior adminis-
trative determinations, that the objection being raised now, for
the first time on administrative appeal, may not be considered
herein.
The record in the instant case indicates that the owner correctly
complied with the application procedures for a major capital
improvement and the Rent Administrator properly computed the
appropriate rent increases. The tenants have not established
that the increase should be revoked.
This order and opinion is issued without prejudice to the ten-
ants' rights to file complaints based on inadequate heat and hot
water if the facts so warrant.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, and the Rent and Eviction Regulations for New York City,
it is
ORDERED, that this petition be, and the same hereby is, denied
and that the Rent Administrator's order be, and the same hereby
is, affirmed.
ISSUED:
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ELLIOT SANDER
Deputy Commissioner
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