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 DOCKET NO.: FK230049RO
APPEAL OF
SALVATORE DINICOLA
RENT ADMINISTRATOR'S
PETITIONER DOCKET NO.: CF230135OM
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On November 14, 1991, the above-named petitioner-owner timely
refiled a petition for administrative review of an order issued on
September 18, 1991 by a Rent Administrator (Gertz Plaza) concerning
the housing accommodations known as 1917 75 Street, Brooklyn, New
York, various apartments.
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 petition for administrative review.
The owner commenced this proceeding on June 20, 1988 by initially
filing a major capital improvement rent increase application with
the Rent Administrator predicated on the installation of new
apartment windows, at a total claimed cost $8,000.00. In support
of his application, the owner submitted copies of the contract and
cancelled checks for the amount of $2,600.00.
The owner certified that on June 15, 1988 he served each tenant of
record with a copy of the application, and placed one copy of the
entire application, including all required supplements and
supporting documentation, in the office of the manager at 1917 75
Street, Brooklyn, New York. No response was received from any of
the tenants.
On July 10, 1991, the Rent Administrator requested copies of the
cancelled checks for the balance of payment amounting to $5,400.00.
The owner responded on August 20, 1991 stating that he had taken a
loan for the balance of $5,400.00; that he was paying the loan in
monthly installments; and that he had no cancelled checks to
submit.
ADMIN. REVIEW DOCKET NO.: FK230049RO
On September 18, 1991, the Rent Administrator issued the order here
under review finding that the building-wide installation of new
apartment windows qualified as a major capital improvement,
determining that the application complied with the relevant laws
and regulations based upon the supporting documentation submitted
by the owner and allowing rent increases for all the apartments
based upon the approved cost of $2,600.00. Disallowed by the Rent
Administrator, was the total of $5,400.00 since the owner failed to
submit copies of the cancelled checks to substantiate his claim.
In his petition for administrative review, the owner requests
modification of the Rent Administrator's order contending, in
substance, that he had filed for a rent increase based on the total
cost of $8,000.00 excluding finance charges; that the cancelled
checks for the sum of $2,600.00 were submitted at the time of
filing; that the sum of $5,400.00 was taken as a loan and paid for
in installments; that as a result of the loan being paid for in
installments, proof of payment could not have been submitted at the
time of filing; that he has now secured and submitted the required
proof; and that he has also submitted copies of the retail
installment obligation, as well as a letter from Ensign Bank,
stating that the loan had been paid-in-full.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this 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 Commissioner notes that the building-wide replacement of
apartment windows qualifies as a major capital improvement for
which an increase may be warranted, providing the owner otherwise
so qualifies. The record indicates that the owner failed to
substantiate his claimed cost with copies of the cancelled checks
for the total sum. However, the Commissioner notes that due to the
nature of the transaction, wherein the owner had obtained $5,400.00
by a loan and was paying said loan in monthly installments, that it
was not possible for him to submit the required documentation at
2
ADMIN. REVIEW DOCKET NO.:FK230049RO
the time of filing of the major capital improvement rent increase
application. The Commissioner finds that the owner has now
submitted the necessary documents, namely the cancelled checks, the
retail installment obligation and a letter from the bank stating
that said loan has been repaid in full.
Based upon the facts and circumstances herein, including the
evidence of the cancelled checks for the balance of the total
claimed cost, the Commissioner is of the opinion and finds that the
owner is entitled to an additional rent increase of $3.75 per room,
per month, based on an additional approved cost of $5,400.00. Said
increase is effective February 1, 1989.
THEREFORE, in accordance with the applicable provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that the owner's petition be, and the same hereby is,
granted in part; that the Rent Administrator's order be, and the
same hereby is, modified to the extent of providing an additional
rent increase of $3.75 per room, per month for the installation of
new apartment windows; and that as so modified, the order of the
Rent Administrator be, and the same hereby is, affirmed, and it is
further
ORDERED, that the tenants pay any arrears in rent resulting from
this order in twenty-four equal monthly installments subject to the
following statutory limitations on collectibility: (1) with respect
to rent stabilized apartments, 6% of the rent charged on the June
1, 1988 rent roll date in any twelve month period with a similar
limitation on the collection of temporary arrears, with any overage
collectible in succeeding years subject to the same limitation on
collectibility.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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