STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEALS OF DOCKET NOS.:GH110136RT/GH110092RT
VARIOUS TENANTS OF 41-40 PARSONS
BOULEVARD, QUEENS, NY RENT ADMINISTRATOR'S
PETITIONERS : DOCKET NO.: ED1101530M
ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
The above-named petitioners timely filed Petitions for Administrative
Review against an order issued on July 24, 1992 by the Rent Administrator
(Gertz Plaza), concerning housing accommodations known as 41-40 Parsons
Blvd., Queens, New York, various apartments, wherein the Administrator
partially granted the owner's major capital improvements (MCI) application.
The Commissioner deems it appropriate to consolidate the Administrative
appeals for determination under this order and opinion as they involve
common issues of law and fact.
The Administrator authorized rent increase adjustments for replacement
windows, a new boiler/burner, a new intercom system, and elevator
upgrading. The Administrator disallowed $4000.00 from the claimed cost
($20,000.00) of the elevator on the grounds that this amount represents
expenses incurred for additional repairs. The Administrator denied MCI
rent increases for pointing/waterproofing, and a new roof as these items
did not fully meet the requirements for same.
The Commissioner has reviewed all of the evidence of record and has
carefully considered that portion of the record relevant to the issues
raised by the administrative appeals.
In their petitions the tenants do not question the propriety of the
Administrator's finding with respect to the quality of the work performed
but rather contend, in substance, that essential services were not being
maintained; and that the items, for which the rent increases were granted,
were in disrepair prior to the improvements.
Rent increases for major capital improvements are authorized by Section
2522.4 of the Rent Stabilization Code and are warranted where the
improvements are 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 indicates that the owner correctly complied
with the application procedures for major capital improvement and the
ADMIN. REVIEW DOCKET NO.: GH110136RT, et. al.
Rent Administrator properly computed the appropriate rent increase for
those installations found to qualify. The tenants have not established
that the increase should be revoked.
The record discloses that the owner substantiated its application in the
proceeding below by submitting to the Administrator documentation in
support thereof, including copies of contracts, contractor's certification
and cancelled checks for the work herein.
The tenants's argument that the items, prior to the work herein, were in
disrepair does not constitute a basis for barring the owner's entitlement
to a major capital improvement rent increase to which it is otherwise
entitled. In fact, it confirms that the improvements were much needed for
the continued operation and preservation of the structure.
Based on the entire evidence of record the Commissioner finds that the
Administrator's order is correct and should be affirmed.
THEREFORE, in accordance with the applicable provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that these petitions, and the same hereby are, denied; and that
the Administrator's order be, and the same hereby is,affirmed.
JOSEPH A. D'AGOSTA