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
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEALS OF DOCKET NOS.:
: HG230060RT/HG230061RT/
VARIOUS TENANTS OF 3111 GLENWOOD HG230064RT/HG230071RT/
ROAD, BROOKLYN, NY HG230072RT/HG230074RT/
PETITIONERS : HG230077RT/HG230078RT/
------------------------------------X HG230098RT/HG230099RT/
HG230100RT/HG230101RT/
HG230106RT/HG230107RT/
HG230108RT/HG230112RT/
HG230113RT/HG230114RT/
HG230116RT/HG230117RT
RENT ADMINISTRATOR'S
DOCKET NO.: GA230047OM
ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
On July 12, 1993, various tenants timely filed petitions for
administrative review against an order issued on June 10, 1993, by
a Rent Administrator (Gertz Plaza) concerning the housing
accommodations known as 3111 Glenwood Road, Brooklyn, New York,
various apartments, wherein the Rent Administrator determined that
the owner was entitled to a rent increase based on the installation
of a major capital improvement (MCI).
The Commissioner deems it appropriate to consolidate these
petitions for a uniform disposition since they pertain to the same
order and involve common issues of law and fact.
The owner commenced this proceeding on January 16, 1992, by
initially filing an application for a rent increase based on the
installation of rewiring at a cost of $63,975.00.
Several tenants objected to the owner's application alleging, in
substance, that (1) there is an existing violation stating that the
wiring is faulty and constitutes an obvious fire hazard. Therefore
the work completed represents necessary building maintenance, and
should not be considered a major capital improvement; (2) tenants
(apartment A9 and D5) stated that the owner only installed two
outlets to facilitate the use of household appliances. New outlets
were not installed in all areas of the apartment; (3) tenants of
apartments E2 and E9 stated that they continue to experience
electrical problems in the living room and bedroom; and (4) tenants
of E2 and F10 stated that they took occupancy in the building on
January 29, 1992 and August 16, 1991 respectively. Moreover, the
tenants of apartments F10 stated that the owner agreed to exempt
them from the rent increase during the period of this leasing
agreement, while the tenants of apartment E2 are of the opinion
that this rent increase should not affect them.
ADMIN. REVIEW DOCKET NO.: HG230060RT, etal
On June 10, 1993, the Rent Administrator issued the order here
under review, finding that the installation qualified as an MCI,
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 rent controlled and
rent stabilized tenants.
In these petitions, the tenants contend, in substance, that the
installation consisted of one outlet for an air conditioner in the
living room and one receptacle in the kitchen. However, certain
appliances if used, will result in a loss of power in the
electrical outlets.
In response to the tenants' petitions, the owner contends, in
substance, that the Division has, in the past entitled owners to an
MCI rent increase whereas the work completed repaired a defective
building condition. Moreover, the tenants allegations are without
merit as the work completed was inspected by the City of New York,
Department of Buildings (Bureau of Electrical Control) and a
Certificate of Electrical Inspection was issued. Furthermore,
various tenants have raised these problems for the first time on
appeal. Therefore these allegations should not be considered.
After careful consideration of the entire record, the Commissioner
is of the opinion that these petitions should be denied.
It is the established position of the Division that the adequate
rewiring of a building constitutes a major capital improvement for
which a rent increase may be warranted, provided the owner
otherwise so qualifies. The Commissioner notes that adequate
rewiring/electrical upgrading requires the installation of new
electric service to the building, new copper risers and feeders
that extend from the property box in the basement to every housing
accommodation of sufficient capacity, (220 volts at the apartment
panel) to accommodate the installation of air conditioner circuits
and outlets as well as two double outlets in the kitchen to
accommodate heavy duty appliances (as performed in the case
herein).
Whereas an owner need not include as part of the major capital
improvement rewiring installation the cost of installing new air
conditioner circuits and outlets, such work may be included, as in
the instant matter, provided they are installed in a uniform number
in each apartment in which event tenant consent to such
installation is not required. The owner is not required to install
an outlet in every room for the work to qualify for an MCI rent
increase.
In the event of a change of tenancy during an MCI proceeding, it is
the obligation of the owner to notify the new tenant of the
pendency of such proceeding, and to advise the Division of this
change in tenancy. While not fatal to the owner's application, the
owner runs the risk of the tenant who was not notified raising
issues on appeal which could have been raised in the proceeding
below, thus jeopardizing the finality of the Administrator's order.
ADMIN. REVIEW DOCKET NO.: HG230060RT, etal
Where, as in the instant case, the tenant of apartment E2 took
occupancy pursuant to a vacancy lease commencing after the owner
had filed its application, the Commissioner notes that for the MCI
increase granted by the Administrator's order to be collectible
during the term of the petitioner's vacancy lease, such vacancy
lease would have to contain a specific clause advising the tenant
of the docket number of the pending proceeding and advising that
the rent charged was subject to an additional increase (during the
current lease term in effect) as provided by Section 2522.4(a)(5)
of the Rent Stabilization Code and established Division precedent.
In the absence of same, said increase was not collectible until the
expiration of the lease term in effect at the time of issuance
(June 10, 1993) of the MCI order, provided the renewal lease
contains a general authorization provision for adjustment of the
rent reserved by a DHCR order.
Finally, the Commissioner is not unmindful of the possibility that
the rent increase may prove burdensome to some tenants. However,
the Commissioner is constrained by the applicable statutory and
regulator 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.
The Commissioner notes that this order is issued without prejudice
to the tenants' filing complaints with the Division based on a rent
overcharge and/or a reduction in services, if the facts so warrant.
On the basis of the entire evidence of record, it is found that the
Administrator's order is correct and should be affirmed.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
and the New York City Rent and Eviction Regulations, it is
ORDER, that these petitions be, and the same hereby are, denied,
and that the Administrator's order be, and the same hereby is,
affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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