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.:
VARIOUS TENANTS OF GK420034RT/GK420036RT/
MOTT STREET GK420037RT/GK420038RT/
NEW YORK, NEW YORK PETITIONERS : GK420039RT/GK420040RT
DOCKET NO.: FC430059OM
ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
On November 6, 1992 the above-named petitioner-tenants filed administrative
appeals against an order issued on October 6, 1992 by the Rent
Administrator (92-31 Union Hall Street, Jamaica, New York) concerning the
housing accommodations known as 200 Mott Street, New York, 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 roof, and new parapet walls.
In these petitions the tenants object to the rent increase and contend, in
substance, that the improvements do not benefit tenants; that the owner was
previously granted maximum base rent (MBR) increase and therefore two rent
increases in one year was "too much"; and that the rent increase should not
be permanent. One tenant contends that the apartment is in "very bad
In response the owner asserts, in substance, that the tenants benefit from
the improvements; that the rent increase is not unreasonable; that the
tenants have not received two increases in one year; and that the owner is
entitled to collect MBR increases.
After careful consideration, the Commissioner is of the opinion that these
petitions should be denied.
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 major capital improvement required for the
operation, preservation, or maintenance of the structure. Under rent
stabilization, the improvement must be generally 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.
Based on the supporting documentation submitted by the owner herein,
including copies of contracts, contractors' certifications and cancelled
ADMIN. REVIEW DOCKET NO.: GK420032RT et al.
checks, the Rent Administrator correctly computed the appropriate rent
increase based on the proven cost of the installations. The tenants have
not established that the rent increase should be revoked.
With respect to the tenants' contention that the owner was granted two rent
increases in one year, the Commissioner notes that an owner may collect an
MCI rent increase in addition to any other rent increases granted by the
The Commissioner is not unmindful of the possibility that rent increases
may prove burdensome to some tenants. However, the Commissioner is
constrained by the applicable statutory and regulatory provisions to grant
such increases as are warranted.
A tenant who has a valid Senior Citizen Rent Increase Exemption Order
(SCRIE) is exempted from that portion of the increase which would cause the
rent to exceed one-third of the tenant's household monthly disposable
income. A tenant who may be entitled to this benefit may contact the New
York City Department of the Aging by calling (212) 240-7000.
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.
As to the contention of one tenant that the apartment is not in good
condition, this order and opinion is issued without prejudice to the
tenants' right to file an appropriate complaint for a decrease in rent
based on a decrease services, if the facts now so warrant.
THEREFORE, in accordance the provisions of the Rent Stabilization Law and
Code and the Rent and Eviction Regulations for New York City, it is
ORDERED, that these petitions be, and the same hereby are, denied, and that
the order of the Rent Administrator be, and the same hereby is, affirmed.
JOSEPH A. D'AGOSTA