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 ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: GA230086RO
APPEAL OF
Rein Realty Corp,
RENT ADMINISTRATOR'S
PETITIONER DOCKET NO: EI230076OM
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
The above-named petitioner-owner timely filed an Administrative
appeal against an order issued on December 23, 1991 by the Rent
Administrator (Gertz Plaza) concerning the housing accommodations
known as 691 Union Street, Brooklyn, New York, various apartments,
wherein the Rent Administrator determined that the owner was
entitled to a rent increase based on the installation of major
capital improvements (MCIs).
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 this Administrative appeal.
The issue herein is whether the Rent Administrator correctly
amortized the cost of the improvements.
The Rent Administrator's order, appealed herein, granted a major
capital improvement rent increase predicated on the installation of
pointing/waterproofing and boiler/burner at a total approved cost
of $19,250.00. Said increase worked out to be $7.16 per room per
month, computed as follows: $19,250.00 divided by 84 months =
$229.17 divided by 32 rooms = $7.16.
In this petition for Administrative Review, the owner requests
modification of the Administrator's order and contends, in
substance, that DHCR has made an error in law as the contracts for
the installations were signed on June 18, and June 21, 1990 and as
such the recoupment period of the costs of such improvements should
be sixty months not eighty-four months as stated in the
Administrator's order.
Adm. Rev. Docket No. GA230086RO
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this Administrative appeal
should be granted.
A review of the record discloses that the commencement dates of the
pointing/waterproofing and boiler/burner installations were July 18
and August 20, 1990 respectively and that the contracts/proposals
for said installations were signed on June 18 and June 21, 1990
respectively.
The Commissioner notes that Section 26-405 of the Rent
Stabilization laws, Chapter 749 of the laws of 1990 amended the
period of amortization of the cost of major capital improvements
and other related expenditures to seven years from five years
unless physical work commenced or legally binding signed contracts
were entered into on or before June 28, 1990.
In view of the fact that the said contracts were signed before June
28, 1990, the Commissioner finds that this proceeding should be
granted and that the owner was entitled to a rent increase of
$10.03 per room, per month, ($19,250.00 divided by 60 months =
$320.83 divided by 32 rooms = $10.03) instead of $7.16 as
previously approved.
The tenants may pay any arrears in rent resulting from this order
to cover the period between the effective dates of the increase
(December 1, 1990 for rent stabilization apartments and January 1,
1992 for rent controlled apartments) as provided in the previous
order and the date of issuance of this order of the Commissioner in
12 equal monthly installments subject to the statutory limitation
on collectibility of 6% (of the 9/90 rent roll) for rent stabilized
apartments and 15% (of the 12/91 rent roll) with respect to rent
controlled apartments.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
and the New York City Rent and Eviction Regulations, it is
ORDERED, that this petition be, and the same hereby is granted;
that the order of the Rent Administrator be, and the same hereby is
modified; and that the rent of the rent stabilized and rent
controlled apartments be, and the same hereby are further increase
as hereinabove provided subject to the limitation on collectibility
set forth herein.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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