ADMIN. REVIEW DOCKET NOS.: BH610126RO & BH630047RT
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
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IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEALS OF : DOCKET NOS.: BH610126RO
: BH630047RT
RENEE CHRISTIAN AND :
DAVID ISAACS : RENT ADMINISTRATOR'S
PETITIONERS : DOCKET NO.:
------------------------------------X BS000240OM
ORDER AND OPINION REMANDING PROCEEDING UNDER DOCKET NUMBER
BH610126RO AND DENYING PETITION UNDER DOCKET NUMBER BH640047RT
The above named petitioners, owner and tenant, filed petitions for
Administrative Review against an order issued on July 29, 1987 by
a Rent Administrator concerning the housing accommodations known as
various apartments, 2150 Creston Avenue, Bronx, New York.
Since the petitions pertain to the same order, the Commissioner
deems it appropriate to consolidate said petitions for disposition.
A former owner commenced this proceeding by the filing of a Major
Capital Improvement (MCI) rent increase application based on the
installation of a boiler/burner and intercom system a total claimed
cost of $38,920.00.
On July 29, 1987 the Administrator issued the order herein appealed
in which the owner was granted an MCI rent increase based on the
installation of an intercom system in the amount of $3,920.00.
Denied as improperly substantiated, were those costs associated
with the installation of the boiler/burner ($35,000).
In his petition the owner herein asserts, in substance, that those
costs associated with the boiler/burner installation were
improperly denied and submits therewith copies of cancelled checks
payable to the heating contractor.
In his petition, the tenant of apartment 1A asserts, in substance,
that the intercom installation was never completed for the building
and therefore the tenants do not have a working intercom system.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that the proceeding under Docket No.
BH610126RO should be remanded to the Rent Administrator for further
processing as provided hereinbelow; and the tenant's petition,
under Docket No. BH630047RT should be denied.
Rent increase for major capital improvements are authorized by
Section 2522.4 of the Rent Stabilization law for rent stabilized
generally be building-wide; depreciable, under the Internal Revenue
ADMIN. REVIEW DOCKET NOS.: BH610126RO & BH630047RT
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.
The evidence of record indicates that the applicant submitted
various supporting documentation including copies of contracts,
proposals, cancelled checks substantiating those costs associated
with the intercom installation and a promissory note dated February
28, 1985 in the amount of $35,000.00 reflecting it's obligation to
pay the full contract price for the boiler/burner installation.
However, the record in the instant case indicates that the owner
may not have been afforded an adequate opportunity to substantiate
the full amount of those costs associated with the boiler/burner
installation. Accordingly, the Commissioner is of the opinion that
the proceeding under Docket No. BH610126RO should be remanded to
for such further processing as may be deemed necessary to ascertain
the validity of the claimed expenditures for the heating system.
With regard to the tenant's assertions concerning the existence and
adequacy of the intercom installation, although the tenant herein
could have raised issues concerning the intercom installation when
this proceeding was before the Administrator the tenant did not do
so (and the agency records do not contain any service complaints
concerning the intercom system). The tenant's assertions are not
supported by the evidence of record and the tenant has not shown
that the rent increase based on the intercom installation should be
revoked. Accordingly, the Commissioner is of the opinion that so
much of the Administrator's order as provides for a rent increase
based on the intercom installation is correct and should be
affirmed.
This order and opinion is issued without prejudice to the tenant
filing a service complaint with the appropriate agency division if
the facts so warrant.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that the tenant's petition, under Docket No. GH630047RT
be, and the same hereby is, denied, and it is further
ORDERED, that the proceeding under Docket No. BH610126RO be, and
the same hereby is, granted to the extent of remanding the
proceeding to the Rent Administrator for further processing in
accordance with this order and opinion. The Administrator's order
remains in full force and effect until a new order is issued on the
remand.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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