DHCR Decisions
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 NO.: DC430326RO
APPEAL OF
MARLENE SIGMAN RENT ADMINISTRATOR'S
DOCKET NO.: ZCK430129OM
PETITIONER
-------------------------------------X
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On March 30, 1989 the above-named petitioner-owner filed an
administrative appeal against an order issued on March 8, 1989 by
the Rent Administrator (92-31 Union Hall Street, Jamaica, New York)
concerning the housing accommodations known as 79 Barrow Street,
NY, NY, various apartments, wherein the Administrator denied a
major capital improvement (MCI) rent increase for the rent
stabilized apartments in the subject premises based on the
installation of new elevator push-button stations and refurbished
elevator cab.
The Rent Administrator's order appealed herein stated that the
installations do not constitute a major capital improvement, but
are considered repairs and maintenance.
On appeal, the petitioner-owner states, in substance, that the
installation qualifies as a major capital improvement; the items
are depreciable under the Internal Revenue Code; the items required
a sign-off from the Buildings Department, and if the work
constituted ordinary repairs, such filing would not have been
necessary; although the Rent Stabilization Code only refers to
"Elevator Upgrading", and does not list the replacement of push-
button stations and refurbishing of elevator cabs specifically, the
J-51 Regulations specifically list those items as major capital
improvements.
After a careful consideration of the entire evidence of the record,
the Commissioner is of the opinion that the administrative appeal
should be denied.
It is the well established position of the Division that for a
partial elevator modernization (upgrading) to qualify as a major
capital improvement, the installation must include a new
controller/selector, the electronic brain of the elevator. The
installation of push-button stations and the refurbishing of an
elevator cab, as evidenced by the contract, constitute repair items
which the Administrator properly found not to qualify as a major
capital improvement.
ADMIN. REVIEW DOCKET NO. DC-430326-RO
Regarding the owner's reference to J-51 tax abatement benefits, the
Commissioner notes that the J-51 program is governed by an
independent body of law and regulations. Thus, the ruling therein
is not determinative in this proceeding which requires an
independent determination as to whether the installation qualifies
as a major capital improvement within the purview of the specific
Rent Laws and Regulations applicable to this matter.
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 applicable provisions of the Rent
Stabilization Law and Code and Operational Bulletin 84-1, it is
ORDERED, that the administrative appeal be, and the same hereby is
denied, and the Administrator's order be, and the same hereby is
affirmed.
ISSUED:
____________________
Joseph A. D'Agosta
Deputy Commissioner
2
|