DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
------------------------------------X ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: GA410421RT
PETITIONER DOCKET NO.: BI430069OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On January 15, 1992, the above-named petitioner-tenant timely re-
filed a petition for administrative review (PAR) of an order issued
on December 18, 1991, by the Rent Administrator, concerning the
housing accommodations known as 205 East 10th Street, New York, NY,
Apartment 4C, wherein the Administrator granted in part the owner's
application for a rent increase based on the installation of
various 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
issue raised by the administrative appeal.
The owner commenced this proceeding on September 14, 1987, by
filing an application for a rent increase which was based on the
installation of major capital improvements. Specifically, the
owner stated that it had installed a new boiler/burner, roof,
pointing, chimney, wiring, pipe insulation, windows and an intercom
system, at a total claimed cost of $125,661.00.
In Docket No. BI430069OM, issued December 18, 1991, the Rent
Administrator partially approved the owner's MCI application by
authorizing a rent increase of $18.49 per room, per month, for all
rent controlled and rent stabilized apartments in the subject
building predicated on the installation of a boiler/burner, roof,
wiring, windows and an intercom system, which work was found to
qualify as an MCI.
In response to the owner's application, various tenants, including
the petitioner and the tenants' association, complained of various
defects in the installation of the improvements. With respect to
the tenants' allegations, a physical inspection was conducted by
ADMIN. REVIEW DOCKET NO. GA410421RT
the DHCR inspectorial staff and all defects verified by inspection
were corrected by the owner. The Administrator issued the order
here under review on December 18, 1991 wherein an appropriate MCI
rent increase was authorized.
In this petition, the tenant contends the Rent Administrator's
order should be changed because the building is in poor condition
and is not well maintained, the intercom system needed to be
repaired, not replaced, the new windows are flimsy, the new wiring
is ugly and obtrusive and other necessary repairs were not made.
The owner did not file a response to the petition, although
afforded the opportunity to do so.
After a careful consideration of the entire record, the
Commissioner is of the opinion that this petition should be denied.
Rent increases for major capital improvements are authorized by
Section 2522.4 of the Rent Stabilization Code and Section 2202.4 of
the New York City Rent and Eviction Regulations and are warranted
where the improvements are building-wide, depreciable under the
Internal Revenue Code, other than for ordinary repair, 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 Administrator's
order was predicated upon a review of full supporting documentation
including contracts, contractor's certification, cancelled checks
and requisite governmental approvals.
The evidence of record in the instant case indicates that all
complaints regarding the installation were addressed appropriately
in the proceeding below. It is the well established position of
the Division that the building-wide installation of new aluminum
framed windows, the adequate rewiring of a building, the
installation of a new roof, boiler/burner and the replacement of an
intercom system constitute major capital improvements for which a
rent increase is warranted, provided the owner otherwise so
qualifies, as it did in the present case.
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 and the Rent and Eviction Regulations
for New York City, it is
ADMIN. REVIEW DOCKET NO. GA410421RT
ORDERED, that this petition be, and the same hereby is, denied; and
that the order of the Rent Administrator be and the same hereby is,
LULA M. ANDERSON