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 NOS.: GE610038RT
APPEAL OF GE610152RT
GE610229RT
Various Tenant of GE610325RT
678 E. 225th Street
Bronx, New York
RENT ADMINISTRATOR'S
PETITIONERS DOCKET NO: CE630155OM
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ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
GE610038RT, GE610229RT and GE610325RT and GRANTING PETITION FOR
ADMINISTRATIVE REVIEW GE610152RT
The above-named petitioner-tenants timely filed administrative
appeals against an order issued on April 20, 1992 by the District
Rent Administrator (92-31 Union Hall Street, Jamaica, New York)
concerning the housing accommodations known as 678 East 225th
Street, Bronx, New York, various apartments, wherein the
Administrator granted major capital improvement (MCI) rent
increases for the controlled and stabilized apartments in the
subject premises based on the installation of new apartment
windows, a new intercom and a new boiler/burner.
In these petitions the tenants raise various contentions regarding
the quality and adequacy of the installations. One tenant objects
to the permanent nature of the rent increase.
In response the owner asserts, in substance, that the installations
are working properly.
The Commissioner is of the opinion that the petitions filed under
Administrative Review Docket Nos. GE610038RT, GE610229RT and
GE610325RT should be denied and that the petition filed under
Administrative Review Docket No. GE610152RT should be granted and
remanded to the Administrator.
Rent increases for major capital improvements are authorized by
Section 2202.4 of the Rent and Eviction Regulations for rent
controlled apartments and Section 2522.4 of the Rent Stabilization
Code for rent stabilized apartments. Under rent control, an
increase is warranted where there has been since July 1, 1970 a
Adm. Rev. Docket No. GE610038RT et. al.
major capital improvement required for the operation, preservation,
or maintenance of the structure. 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 shows that complaints raised by the tenants in Apartment
1E and 2C regarding the windows, intercom and boiler/burner, and by
the tenant in apartment 1G regarding the windows were raised during
the proceeding below; that a physical inspection of the premises
was scheduled to investigate the complaints; and that the tenant of
apartment 1E informed the DHCR prior to the scheduled inspection
that he was cancelling his complaints. On July 15, and 17, 1991 and
March 19, 1992 physical inspections of the subject premises were
conducted by a DHCR staff member who reported that the tenant of
apartment 1G had no complaints regarding the window installation
and that the hot water was adequate, the intercom was working and
there was no evidence of defective windows in apartment 2C. The
Commissioner further notes that Division records disclose that no
heating complaints were pending during the proceeding below, nor
have any been filed since the issuance date of the Administrator's
order . Based on the supporting documentation submitted by the
owner the Administrator properly found the work in question to
constitute major capital improvements and properly determined that
a rent increase was warranted with exceptions as noted in the
Administrator's order. The tenants of apartments 1E , 1G and 2C
have not established that the increase should be revoked.
Accordingly, the Commissioner finds that the petitions filed under
Administrative Review Docket Nos. GE610038RT, GE610229RT and
GE610325RT should be denied.
Regarding the complaints raised by the tenant of Apartment BB, the
record discloses that said complaints were raised by the tenant
during the proceeding below and were not addressed by the
Administrator.
Therefore, the Commissioner finds that said tenant's petition,
filed under Administrative Review Docket No. GE610152RT, must be
remanded for such further processing (including a physical
inspection) as is necessary to resolve the issues therein.
Adm. Rev. Docket No. GE610038RT et. al.
Regarding the contention that the MCI rent increase should not form
a permanent part of the rent structure, the Commissioner notes that
the permanent nature of the increase has been upheld by the Court
of Appeals of the State of New York in the Matter of Ansonia
Residents Association V. DHCR.
This order and opinion is issued without prejudice to the tenants'
rights to file the appropriate application with the Division for a
decrease in rent based upon any current service deceases, if the
facts so warrant.
THEREFORE, in accordance with the Rent and Eviction Regulations and
the Rent Stabilization Code, it is
ORDERED, that the petitions filed under Administrative Review
Docket Nos. GE610038RT, GE610229RT and GE610325RT be, and the same
hereby are, denied, and it is further ordered that the petition
filed under Administrative Review Docket No. GE610152RT be, and the
same hereby is, granted to the extent of remanding said proceeding
to the Rent Administrator for further processing in accordance with
this order and opinion. The automatic stay of so much of the Rent
Administrator's order as directed a retroactive rent increase is
hereby continued for apartment BB until a new order is issued upon
remand. However, the Administrator's determination as to a
prospective rent increase is not stayed and shall remain in effect
until the Administrator issues a new Order upon remand.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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