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.: HH430177RT,
APPEALS OF HH430178RT, HI430023RT,
HI430063RT
Various Tenants of 840 West End
Avenue, NY, NY
RENT ADMINISTRATOR'S
PETITIONERS DOCKET NO: EL430043OM
------------------------------------X
ORDER AND OPINION GRANTING PETITIONS FOR ADMINISTRATIVE REVIEW IN
PART
The above named petitioner-tenants timely filed petitions for
administrative review (PAR) against an order issued on August 10,
1993, by a Rent Administrator (Gertz Plaza) concerning the housing
accommodations known as 840 West End Avenue, NY, New York, various
apartments, wherein the Rent Administrator determined that the
owner was entitled to a rent increase based on the installation of
major capital improvements (MCIs).
The Commissioner deems it appropriate to consolidate these
petitions for disposition since they pertain to the same order and
involve common issues of law and fact.
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 these administrative appeals.
The owner commenced this proceeding on December 13, 1990, by
initially filing an application for a rent increase based on the
installation of the following items at a total claimed cost of
$124,201.00:
(A)New burner;
(B)New prime windows; and
(C)New intercom.
The tenants objected to the owner's application, alleging, in
substance, that the windows were not replaced building-wide; that
all the necessary documentation needed to substantiate the
application was not provided by the owner; that the J-51 tax
abatement applied for by the owner did not receive consideration in
the calculation of the proposed increase; that the owner did not
actually do all the work claimed; that some of the work done was
completed in an unworkmanlike manner; that the owner has not
certified that it is maintaining all the required services; and
that various violations exist against the premises which should
disqualify the owner from receiving an MCI increase.
The owner made certain adjustments to its initial application which
resulted in partial exemptions for some apartments.
On August 10, 1993, the Rent Administrator issued the order here
under review finding that the installations qualified as MCIs,
determining that the application, for the most part, complied with
the revelant laws and regulations based upon the supporting
documentation submitted by the owner, and allowing rent increases
for rent regulated tenants based upon total approved costs of
$106,984.20.
In these petitions, the tenants contend, in substance, that the
installation of windows in apartment 3B has not been completed;
that no new windows were placed in apartment 4C as a result of the
window MCI herein the windows of said apartment having been
previously replaced at the tenant's own expense; that the
installation of windows in apartment 3A was completed after the
effective date for the increase; that the costs claimed for the
burner are exorbitant; that the approved cost for the window MCI
exceeds the actual cost of the MCI; that the burner is not new;
that the cost of the intercom MCI is exorbitant; and that there is
an outstanding rent reduction order on apartment 5B.
In response to the tenants' petitions, the owner stated that it
adjusted the rents on apartments 3A and 4C based upon an inspection
of the premises which revealed that the tenant of apartment 4C did
not have the same windows as those placed in other apartments as a
result of the instant window installation and that the windows in
apartment 3A were installed late because of a dispute between the
previous owner and the contractor. However, the claims of the
tenant of apartment 3B were unsubstantiated as said inspection
revealed that the window installation in that apartment was
complete. With respect to the other allegations raised on appeal,
the owner asserts that all MCI expenditures were accompanied by the
necessary contracts and cancelled checks as verification of the
costs incurred for each MCI; and DHCR approved the MCIs after a
review of the documentation.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that these petitions should be
granted, in part.
The evidence of record indicates that the owner has addressed the
issues raised herein appropriately and that the Rent Administrator
acted properly in granting the increase based upon the owner's
submission of the necessary documentation.
With respect to the tenants' contentions that the costs for the
burner and the intercom system which included video surveillance
components are exorbitant, it is noted that the tenants have not
provided sufficient evidence to refute the supporting documentation
submitted by the owner which included armslength contracts and
copies of cancelled checks verifying claimed costs.
The Commissioner notes that any tenant with a rent reduction order
in effect due to the owners failure to maintain individual
apartment services at the time the rent increase order was issued
shall not be responsible for payment of the increase herein until
such time as a rent restoration order is issued for the subject
apartment and then only on a prospective basis and any retroactive
increase is forfeited for the period during which a rent reduction
was in effect. The determination herein is without prejudice to the
right of the tenants to file apartment service complaints with the
DHCR, if the facts so warrant.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
and the New York City Rent and Eviction Regulations, it is
ORDERED, that these petitions be, and the same hereby are, granted
in part; and that the Administrator's order be, and the same hereby
is, modified to the extent of changing the effective date for the
rent increase on apartment 3A to May 1, 1992, with respect to the
installation of new prime windows; and exempting apartment 4C from
that portion of the rent increase associated with the window
installation. The order of the Administrator is hereby affirmed in
all other respects.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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