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. FL 110179-RT
                                         :              FL 130187-RT
     THOMAS FAVATA AND VARIOUS TENANTS,                                       
     R. BONNIE HABER                        RENT ADMINISTRATOR'S
                           PETITIONER    :  DOCKET NO. CH 130110-OM
     ------------------------------------X                             

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
           DOCKET NO. FL 110179-RT, GRANTING PETITION FOR ADMINISTRATIVE
             REVIEW DOCKET NO. FL 130187-RO AND MODIFYING THE ORDER OF
                              THE RENT ADMINISTRATOR

     The above  named  petitioner-tenants  and  petitioner-owner  timely  filed
     Petitions for Administrative Review against an order  issued  on  November
     18, 1991 by the Rent Administrator, 92-31 Union Hall Street, Jamaica,  New
     York concerning housing accommodations known as  86-20  Park  Lane  South,
     Woodhaven,  New  York,  various  apartments,  wherein  the   Administrator
     authorized an MCI rent increase for the  installation  of  new  doors  and
     apartment windows and disallowed expenditures in the amount of  $26,000.00
     for the installation of a new boiler based upon a  determination  that  an
     MCI increase had previously been authorized for such installation.

     The Commissioner notes  that  all  of  the  apartments  involved  in  this
     proceeding are rent stabilized.

     These petitions are consolidated for disposition herein  as  they  involve
     common issues of law and fact.

     The Commissioner has reviewed all of the evidence in the  record  and  has
     carefully considered that portion of the  record  relevant  to  the  issue
     raised by the administrative appeals.

     In their petition the tenants contend that some tenants have been paying a 
     rent  increase  for  new  windows  installed  prior  to  the  subject  MCI
     installation; that the previously installed windows were replaced with the 
     MCI installation; that tenants are still paying increases for the  earlier
     installation and therefore the MCI increase should be deleted  from  their
     rent; that some of the windows "frostup" in the winter,  let  moisture  in
     when it rains and are not vacuum sealed and insulated; and that  the  door
     installed by the owner is primarily used as a fire exit/delivery  door  to
     which the tenants do not have access during  the  day  and  therefore  the
     tenants are not obligated to pay for it.











          DOCKET NUMBERS: FL 110179-RT & FL 130187-RT
     In her petition the  owner  contends  that  the  prior  MCI  increase  was
     authorized for the installation of a new burner, not  a  new  boiler;  and
     that the Administrator's Order should be modified to include  an  increase
     for the new boiler.

     After a careful consideration of the entire record, the Commissioner is of 
     the opinion that the tenants' petition should be denied  and  the  owner's
     petition should be granted.

     Rent increases for major capital improvements are  authorized  by  Section
     2522.4 of the Rent Stabilization  Code  for  rent  stabilized  apartments.
     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 record in the  instant  case,  which  includes  copies  of  proposals,
     invoices, contractor's certifications and cancelled checks  for  the  door
     and window installation, indicates that the owner correctly complied  with
     the applicable  procedures  for  a  major  capital  improvement  for  said
     installations and that the tenants have not established that the  increase
     should be revoked.

     Regarding the tenants'  contention  that  some  tenants  were  paying  and
     continue to pay a rental increase for previously  installed  new  windows,
     the tenants  failed  to  submit  any  documentation  in  support  of  this
     allegation.  However, this Order and Opinion is issued  without  prejudice
     to any tenants' right to file a complaint of rent overcharge, if the facts 
     so warrant.

     Regarding  the  tenants'  contention  that  the  window  installation   is
     defective, the Commissioner notes that the  tenants  did  not  raise  such
     objections with specificity during the proceeding before the Administrator 
     although afforded the opportunity to  do  so.   Accordingly,  pursuant  to
     Section 2529.6 of the Rent Stabilization Code, the tenants' contention may 
     not be considered now when offered for the first  time  on  administrative
     appeal.  However, the Order and Opinion is issued without prejudice to the 
     tenants' rights to file an application for a decrease in rent  based  upon
     any current decrease in services, if the facts so warrant.

     Regarding the owner's contention that an MCI increase is warranted for the 
     boiler installation, the record indicates that on  March  21,  1988  under
     Docket No. AB 130149-OM the Rent Administrator issued an order authorizing 
     an MCI increase for,  among  other  things,  the  installation  of  a  new
     boiler/burner at the subject premises.  However, a review of the record in 
     that proceeding reveals that, although  referred  to  as  a  boiler/burner
     installation, said installation consisted of a  new  burner  and  did  not
     include a new boiler.  Accordingly, in view of the fact that  the  owner's
     MCI application included  copies  of  a  proposal,  invoice,  contractor's
     certification, cancelled checks and governmental approvals  and  sign-offs
     for the boiler installation and  operation  of  the  heating  system,  the
     Commissioner finds that an MCI increase is warranted for the boiler 










          DOCKET NUMBERS: FL 110179-RT & FL 130187-RT
     installation and that the increase determined by the Rent Administrator 
     should be modified to reflect the  hereby  approved  cost  of  the  boiler
     installation as follows:

               Total approved Cost:

                    apartment windows       $28,350.00
                    boiler                  $26,000.00
                    doors                   $   450.00
                                            $54,800.00

               Divided by 60 months:           $913.33

               Total rooms                        150

               Permanent rent increase
               per room, per month:               $6.09

     Based upon the above computation, the permanent rent increase is $6.09 per 
     room, per month, effective from  March  1,  1989;  is  collectible  as  of
     December 1, 1991; and shall not exceed 6% of the rent  as  of  January  1,
     1989 each year.

     The tenants may pay any arrears occurring as a result of  this  Order  and
     Opinion in 12 equal monthly installments.

     Therefore, in accordance with the provisions of the Rent Stabilization Law 
     and Code, it is

     ORDERED, that the tenants' petition be, and the same  hereby  is,  denied;
     that the owner's petition be, and the same hereby is,  granted;  and  that
     the Rent Administrator's order be, and the same  hereby  is,  modified  in
     accordance with this Order and Opinion; and as so modified, said order  is
     hereby affirmed.

     ISSUED:




            
                                                                       
                                               JOSEPH A. D'AGOSTA
                                           Acting Deputy Commissioner




                                                   
    

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