FK 210150-RT, et al.
                                  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


            ----------------------------------x
            IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
            APPEALS OF                              DOCKET NOS.:   
                                                    FK 210150-RT;  FK 210151-RT;
                                                    FK 210160-RT;  FK 230149-RT;
                                                    FK 210152-RT;  FK 210161-RT;
                                                    FK 210142-RT;  FK 210153-RT;
                    VARIOUS TENANTS OF              FK 210162-RT;  FK 210143-RT;
                  266 WASHINGTON AVENUE             FK 210154-RT;  FK 210144-RT;
                                                    FK 210155-RT;  FK 210156-RT;
                                                    FK 210146-RT;  FK 210157-RT;
                                                    FK 210147-RT;  FK 210158-RT;
                                                    FK 210148-RT;  FK 210159-RT;
                                                    FK 210113-RT;  FK 210133-RT;
                                                    FK 210114-RT;  FK 210134-RT;
                                                    FK 210119-RT;  FK 210135-RT;
FK 210124-RT;      FK 210137-RT;
FK 210125-RT;      FK 210138-RT;
FK 210126-RT;      FK 210138-RT;
FK 210129-RT;      FK 210139-RT;
FK 210130-RT;      FK 210140-RT;
FK 210131-RT;      FK 210141-RT;
FK 210145-RT;      FK 210238-RT;
FK 210127-RT;      FK 210128-RT
                      RENT ADMINISTRATOR'S
             DOCKET NO.:
                PETITIONERSCG 230088-OM
            ----------------------------------x


                   ORDER AND OPINION REMANDING THE PROCEEDING TO THE
                                   RENT ADMINISTRATOR


            The Commissioner has consolidated these petitions as they involve 
            common questions of law and fact.

            Various tenants filed timely petitions for administrative review 
            of an order issued on October 18, 1991, by a Rent Administrator 
            concerning various housing accommodations in the premises known 
            266 Washington Avenue, Brooklyn, 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.











            FK 210150-RT, et al.


            The owner commenced this proceeding on July 19, 1988 by filing an 
            application for a rent increase based on major capital improve- 
            ments, to wit - repiping, mailboxes, windows, boiler/burner, 
            water main, pointing and waterproofing, new roof, doors, intercom 
            and a waste compactor at a total cost of $527,683.38. 







            FK 210150-RT, et al.














            FK 210150-RT, et al.

            On January 5, 1989, the Division of Housing and Community Renewal 







            FK 210150-RT, et al.

            (DHCR) served each tenant with a copy of the application and 












            FK 210150-RT, et al.

            afforded the tenants the opportunity to review it and comment 







            FK 210150-RT, et al.

            thereupon.












            FK 210150-RT, et al.









            FK 210150-RT, et al.

            Various tenants responded, complaining of leaks, defective 












            FK 210150-RT, et al.

            windows, elevator, intercom, compactors, mailboxes, roof and roof 







            FK 210150-RT, et al.

            doors.  Tenants' answers were served on the owner.  An inspection 












            FK 210150-RT, et al.

            conducted on September 26, 1991 and September 27, 1991 found no 







            FK 210150-RT, et al.

            defective installations except for sink pipe leaks in Apt. B-2 












            FK 210150-RT, et al.

            and sink knob leak in Apt. 4-B.







            FK 210150-RT, et al.














            FK 210150-RT, et al.

            On October 18, 1991, the Rent Administrator issued the order here 







            FK 210150-RT, et al.

            under review finding that the installations qualified as major 












            FK 210150-RT, et al.

            capital improvements, determining that the application complied 







            FK 210150-RT, et al.

            with the relevant laws and regulations based upon the supporting 












            FK 210150-RT, et al.

            documentation submitted by the owner, and allowing appropriate 







            FK 210150-RT, et al.

            rent increases for rent controlled and rent stabilized apart- 












            FK 210150-RT, et al.

            ments.  







            FK 210150-RT, et al.














            FK 210150-RT, et al.

            Of the $527,683.38 total cost claimed by the owner, only 







            FK 210150-RT, et al.

            $498,828.32 was approved.  The work on the water main and new 












            FK 210150-RT, et al.

            mailboxes was ruled not to be major capital improvements; the 







            FK 210150-RT, et al.

            new doors and waste compactor installations were barred by the 












            FK 210150-RT, et al.

            two year limitation rule, and $3,127 was disallowed on the cost 







            FK 210150-RT, et al.

            of elevator upgrading due to lack of substantiation.  The owner 












            FK 210150-RT, et al.

            was directed to correct the conditions found in apartments B-2 







            FK 210150-RT, et al.

            and 4-B.












            FK 210150-RT, et al.









            FK 210150-RT, et al.

            In their petitions for administrative review the tenants request 












            FK 210150-RT, et al.

            reversal or modification of the Rent Administrator's order 







            FK 210150-RT, et al.

            alleging inter alia that the new windows do not work properly, 












            FK 210150-RT, et al.

            that the roof leaks, that mailboxes are not secure, that the 







            FK 210150-RT, et al.

            intercom is defective, that the elevators regularly breakdown, 












            FK 210150-RT, et al.

            that permanent increases are a violation of the Rent Stabiliza- 







            FK 210150-RT, et al.

            tion laws, that the "improvements" constitute only repairs, that 












            FK 210150-RT, et al.

            no tenants saw or spoke to the inspector on September 26 and 27, 







            FK 210150-RT, et al.














            FK 210150-RT, et al.









            FK 210150-RT, et al.














            FK 210150-RT, et al.

            1991, that certain services, including heat and hot water, are 







            FK 210150-RT, et al.

            deficient in the building.  The tenant of apartment B-2 alleges 












            FK 210150-RT, et al.

            that no repairs have been effectuated in that apartment.  The 







            FK 210150-RT, et al.

            tenant of apartment B-14 alleges he signed the rider to his first 












            FK 210150-RT, et al.

            lease under protest.  The tenants further allege that the last 







            FK 210150-RT, et al.

            line of page one of the Rent Administrator's order is missing and 












            FK 210150-RT, et al.

            that they object to paying more than a 6% rent increase.







            FK 210150-RT, et al.














            FK 210150-RT, et al.

            After careful consideration the Commissioner is of the opinion 







            FK 210150-RT, et al.

            that this proceeding should be remanded to the Rent Administrator 












            FK 210150-RT, et al.

            for further processing.







            FK 210150-RT, et al.















            FK 210150-RT, et al.

            The Commissioner notes that the last line on page one of the Rent 







            FK 210150-RT, et al.

            Administrator's order is incomplete due to a typographical omis- 













            FK 210150-RT, et al.

            sion.  The last sentence on page one should read as follows:







            FK 210150-RT, et al.















            FK 210150-RT, et al.

The tenant may pay this amount in equal 







            FK 210150-RT, et al.

monthly payments not to exceed 6% of the rent 













            FK 210150-RT, et al.

as of July 12, 1988, any balance to be paid 







            FK 210150-RT, et al.

in the following months.













            FK 210150-RT, et al.









            FK 210150-RT, et al.

            The Commissioner notes that the mailboxes installation did not 













            FK 210150-RT, et al.

            qualify for rent increases based on a major capital improvement.  







            FK 210150-RT, et al.

            Accordingly, no increases were granted therefor in the Rent Ad- 













            FK 210150-RT, et al.

            ministrator's order.







            FK 210150-RT, et al.















            FK 210150-RT, et al.

            In regard to the various objections raised by the tenants during 







            FK 210150-RT, et al.

            the course of the Rent Administrator's proceeding the Commis- 













            FK 210150-RT, et al.

            sioner notes that no less than thirty tenants complained about 







            FK 210150-RT, et al.

            defective or poorly operating windows prior to the issuance of 













            FK 210150-RT, et al.

            the order under review.  Also, twenty tenants complained about 







            FK 210150-RT, et al.

            defective intercoms after the new installations and nineteen 













            FK 210150-RT, et al.

            tenants complained about various problems with the plumbing.







            FK 210150-RT, et al.















            FK 210150-RT, et al.

            In response to these complaints the Rent Administrator served 







            FK 210150-RT, et al.

            notice on the owner of the alleged problems raised in the tenant 













            FK 210150-RT, et al.

            objections.  In reply, the owner submitted forms signed by each 







            FK 210150-RT, et al.

            of the tenants who had complained about the intercoms stating 













            FK 210150-RT, et al.

            that there were no problems with the intercom.  Accordingly, the 







            FK 210150-RT, et al.

            Commissioner finds that the intercom was functioning properly at 













            FK 210150-RT, et al.

            the time of issuance of the administrator's order and qualified 







            FK 210150-RT, et al.

            for an MCI increase.













            FK 210150-RT, et al.









            FK 210150-RT, et al.

            It is noted that a number of tenants complained about the ade- 













            FK 210150-RT, et al.

            quacy of the work done on the elevators.  The record indicates 







            FK 210150-RT, et al.

            that the Rent Administrator investigated these complaints and the 













            FK 210150-RT, et al.









            FK 210150-RT, et al.















            FK 210150-RT, et al.









            FK 210150-RT, et al.

            inspections carried out on September 26, 27, 1991 revealed that 













            FK 210150-RT, et al.

            the elevators were functioning properly at the time of issuance 







            FK 210150-RT, et al.

            of the order under review.  Accordingly, the Commissioner finds 













            FK 210150-RT, et al.

            that the elevator upgrading qualified for an MCI rent increase.







            FK 210150-RT, et al.















            FK 210150-RT, et al.

            The Commissioner notes that in regard to the windows complaints 







            FK 210150-RT, et al.

            and plumbing complaints the inspector only visited two and five 













            FK 210150-RT, et al.

            apartments respectively and that this was an inadequate number 







            FK 210150-RT, et al.

            of apartments upon which to base the Rent Administrator's 













            FK 210150-RT, et al.

            determination that the problems had been resolved or that the 







            FK 210150-RT, et al.

            objections were groundless.













            FK 210150-RT, et al.









            FK 210150-RT, et al.

            In regard to the windows, the Commissioner notes that thirty 













            FK 210150-RT, et al.

            tenants raised objections to the quality of the installations 







            FK 210150-RT, et al.

            and that the owner submitted the tenants' sign-offs for certain 













            FK 210150-RT, et al.

            of these tenants stating that problems didn't exist.  The ten- 







            FK 210150-RT, et al.

            ants of the apartments who complained about windows but for whom 













            FK 210150-RT, et al.

            no sign-offs were submitted and whose apartments were not 







            FK 210150-RT, et al.

            inspected include: A12, A14, B4, B6, B17, B20, C20, D4, D19, E1, 











            FK 210150-RT, et al.

            E19, E4, E6, E10, E12, E18, F1, and B15.  Accordingly the Commis- 







            FK 210150-RT, et al.

            sioner finds that this proceeding should be remanded to the Rent 











            FK 210150-RT, et al.

            Administrator for further processing, including an inspection if 







            FK 210150-RT, et al.

            deemed necessary, in order to ascertain whether all window prob- 











            FK 210150-RT, et al.

            lems and defects have been corrected.







            FK 210150-RT, et al.













            FK 210150-RT, et al.

            In regard to plumbing, the Commissioner notes that the tenants of 







            FK 210150-RT, et al.

            nineteen apartments raised objections alleging problems.  The 











            FK 210150-RT, et al.

            owner submitted sign-offs by certain of these tenants and the 







            FK 210150-RT, et al.

            inspector found no problems existed in certain other apartments. 











            FK 210150-RT, et al.

            The tenants of the apartments who alleged plumbing defects but 







            FK 210150-RT, et al.

            for whom the owner did not submit sign-offs and whose apartments 











            FK 210150-RT, et al.

            were not inspected include the following:  Apartments. B17, B20, 







            FK 210150-RT, et al.

            C12, D4, E1, E4, E6, E18, F17, B2, and B4.  Accordingly the Com- 











            FK 210150-RT, et al.

            missioner finds that this proceeding should be remanded to the 







            FK 210150-RT, et al.

            Rent Administrator for further processing, including an inspec- 











            FK 210150-RT, et al.

            tion,  if deemed necessary, in order to ascertain whether all 







            FK 210150-RT, et al.

            plumbing problems and defects have been corrected. 











            FK 210150-RT, et al.









            FK 210150-RT, et al.

            In regard to the remaining items for which the Rent Administrator 











            FK 210150-RT, et al.

            granted rent increases based upon major capital improvements the 







            FK 210150-RT, et al.

            Commissioner finds, based upon a close review of the record, that 











            FK 210150-RT, et al.

            the increases were warranted and should be sustained.







            FK 210150-RT, et al.













            FK 210150-RT, et al.

            In conclusion the Commissioner finds that the order under review 







            FK 210150-RT, et al.

            should be affirmed as to all claimed items except the windows and 











            FK 210150-RT, et al.

            repiping in the apartments hereinabove-cited.  For these apart- 







            FK 210150-RT, et al.

            ments the Commissioner determines that the proceeding should be 











            FK 210150-RT, et al.

            remanded for further processing.







            FK 210150-RT, et al.













            FK 210150-RT, et al.









            FK 210150-RT, et al.













            FK 210150-RT, et al.

            This order and opinion is issued without prejudice to the 







            FK 210150-RT, et al.

            tenants' rights to file complaints based on a diminution of 











            FK 210150-RT, et al.

            services, inadequate heat and hot water, or overcharge, should 







            FK 210150-RT, et al.

            the facts so warrant.











            FK 210150-RT, et al.









            FK 210150-RT, et al.













            FK 210150-RT, et al.

            THEREFORE, in accordance with the Rent Stabilization Law and 







            FK 210150-RT, et al.

            Code, and the Rent and Eviction Regulations, it is 











            FK 210150-RT, et al.









            FK 210150-RT, et al.

            ORDERED, that this proceeding be, and the same hereby is, re- 











            FK 210150-RT, et al.

            manded to the Rent Administrator for further processing in 







            FK 210150-RT, et al.

            accordance with this order and opinion.  In all other respects 











            FK 210150-RT, et al.

            the Rent Administrator's order is affirmed.  The previously 







            FK 210150-RT, et al.

            issued Rent Administrator's order remains in full force and 











            FK 210150-RT, et al.

            effect until a new order is issued on remand.







            FK 210150-RT, et al.













            FK 210150-RT, et al.









            FK 210150-RT, et al.

            ISSUED:











            FK 210150-RT, et al.









            FK 210150-RT, et al.













            FK 210150-RT, et al.

                                               







            FK 210150-RT, et al.

               JOSEPH A. D'AGOSTA











            FK 210150-RT, et al.

               Deputy Commissioner







            FK 210150-RT, et al.













            FK 210150-RT, et al.









            FK 210150-RT, et al.

                                            




    

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