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.:ART 13038-U
       GLADYS LEDDY AND THE TENANTS OF   :              BE 430434-RO
       707 WEST 171ST STREET                
       NEW YORK, NEW YORK, AND              RENT ADMINISTRATOR'S
       MIRLAN REALTY,OWNER   PETITIONERS :  DOCKET NO.: USC 00217-OM
     ------------------------------------X                             

         ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW UNDER
       DOCKET NO. BE 430434-RO AND DENYING PETITION FOR ADMINISTRATIVE REVIEW
                            UNDER DOCKET NO. ART 13038-U

     The above-named petitioners filed and timely refiled petitions for 
     administrative review of an order issued on May 23, 1986 by a District Rent 
     Administrator (Gertz Plaza) concerning the housing accommodations known as 
     707 West 171st Street, New York, New York, various apartments.

     The Commissioner has reviewed all the evidence in the record and has 
     carefully considered that portion of the record relevant to the issues 
     raised by the petitions for review.

     The owner commenced the proceeding before the District Rent Administrator 
     below by filing an application for a Major Capital Improvement (MCI) rent 
     increase with the Division claiming total costs of $120,205.00 for the 
     installation of replacement windows building-wide, a new roof, boiler/burner 
     and "adequate wiring".

     In response to the owner's application the tenants, submitted substantially 
     identical answers in which they claimed, in substance, that the 
     installations were inadequate and had been completed in an unworkmanlike 
     manner.  More specifically, the tenants asserted, in substance, that the 
     windows had been poorly installed and were likely to "fall out of their 
     frames"; that the electrical installation was minimal and only involved work 
     in the kitchen and the installation of one "alternating current" outlet per 
     apartment, which the tenants assert fail to function properly; that the roof 
     had only been patched and continued to leak, and that the boiler breaks down 
     on a weekly basis leaving the tenants without heat or hot water.

     On May 23, 1986 the District Rent Administrator issued the order here under 
     review granting in part the owner's MCI application and authorizing an MCI 
     rent increase for the installation of a new roof, boiler/burner and adequate 
     rewiring at a total recognized cost of $69,751.00.  Disallowed by the 
     Administrator was the claimed cost for the installation of new windows as 
     well as claimed costs totalling $50,454.00 for the boiler/burner and roof 
     installations due to the owner's failure to submit documentation to 
     substantiate same.










          DOCKET NUMBER: ART 13038-U/BE 430434-RO
     In his petition the owner states "notice of modification of major capital 
     improvement application to submit additional proof of payment".  The owner 
     encloses a list of various tenant's signatures and copies of certified 
     mailing receipts indicating that his petition had been mailed to the agency.

     In their petition for administrative review the tenants reiterate, in 
     substance, their prior allegations.

     After careful consideration of the entire evidence of record, the 
     Commissioner is of the opinion that these petitions should be denied.

     Rent increases for major capital improvements are authorized by Section 
     2202.4 of the Rent and Eviction Regulations for rent controlled apartments 
     and Section 2522.4 of the Rent Stabilization Code for rent stabilized 
     apartments.  Under rent control, an increase is warranted where there has 
     been since July 1, 1970 a major capital improvement required for the 
     operation, preservation, or maintenance of the structure.  Under rent 
     stabilization, the improvement must generally be building-wide; depreciable 
     under the Internal Revenue 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.  

     Division policy and precedent require that electrical reqiring include new 
     copper risers and feeders extending from the property box in the basement to 
     every housing accommodation in order to qualify as an MCI.  The owner must 
     also establish that there has been a substantial improvement to the kitchen 
     and apartment wiring and that the wiring in the livingroom and bedrooms is 
     of sufficient capacity to accommodate the installation of air conditioner 
     outlets.

     The record shows that to the extent recognized by the Administrator, the 
     owner substantiated its installations with the necessary governmental 
     approvals including a certificate of electrical inspection which bears a 
     stamp indicating that the installation had met the requirements of 
     Administrator's Interpretation #1 which require the addition in the kitchen 
     areas of a duplex outlet to support the operation of heavy duty appliances, 
     a sufficient number of outlets in each room, and the upgrading of the risers 
     and feeders.  It is further noted that with the issuance of the 
     Administrator's order appealed herein the tenants received a rider notice in 
     which they were apprised of their right to request the installation 
     electrical outlets of sufficient capacity to support the operation of air 
     conditioner units in the bedrooms and living rooms of their respective 
     apartments.  

     The Commissioner further notes that the tenants, in their answers to the 
     owner's MCI application, concede that all of the requisite installations 
     were made including the installation of one heavy duty "alternating current" 
     outlet.


          DOCKET NUMBER: ART 13038-U/BE 430434-RO
     With regard to the boiler/burner and roof installations, the owner submitted 
     copies of proposals for the work performed, paid invoices and cancelled 
     checks (several copies are illegible) in substantiation of the claimed costs 
     thereof and, where applicable, certificates of inspection from the 
     governmental agencies having jurisdiction.  The tenants do not deny that 
     these installations were made, but assert that they are inadequate.

     In this respect the Commissioner further notes that the records of the 
     Division disclose that no orders of rent reduction have been issued based on 
     the owner's failure to provide services of a building-wide nature nor have 
     there been any complaints based on the owner's failure to provide heat 
     and/or hot water.  The tenants' unsupported allegations of the inadequacy of 
     the installation is insufficient to refute the documentation submitted by 
     the owner.

     Regarding the owner's petition in which he states "notice of modification of 
     major capital improvement application to submit additional proof of payment" 
     the Commissioner notes that although the agency sent the owner a request for 
     further information on March 26, 1992 the owner failed to respond.  In fact, 
     the record reveals that when this proceeding was before the Rent 
     Administrator the owner, by rent agency notice dated July 12, 1985, was 
     requested to submit copies of contracts for the rewiring, new roof and 
     boiler/burner installations as well as all copies of legible cancelled 
     checks for several previously unaccounted for balances relating to the above 
     installations and to date the owner failed to submit additional information 
     or to state the approximate age of those windows replaced.  Having failed to 
     do so, the Commissioner is of the opinion that the Administrator properly 
     denied, in part, the owner's MCI application due to the owner's failure to 
     adequately substantiate same.  

     With reference to the tenants' petition regarding the windows, the 
     Commissioner notes that this item did not result in a rent increase in the 
     order appealed herein.  Accordingly, the tenants are advised that this order 
     is issued without prejudice to their rights to file appropriate service 
     complaints if the facts so warrant

     It is the established position of the Division that the various improvements 
     for which rent increase adjustments were authorized, under Docket No. USC 
     000217-OM, including the installation, of a new boiler/burner, adequate 
     wiring and a new roof, qualifying as major capital improvements for which 
     appropriate rent increases were granted.

     Based upon the entire evidence of record, the Commissioner is of the opinion 
     that the Administrator's order was correct when issued and should be 
     affirmed.

     THEREFORE, pursuant to the Rent Stabilization Law and Code and the Rent and 
     Eviction Regulations for New York City, it is











          DOCKET NUMBER: ART 13038-U/BE 430434-RO
     ORDERED, that these petition be, and the same hereby are denied, and that 
     the District Rent Administrator's order be, and the same hereby is, 
     affirmed.

     ISSUED:








                                                                   
                                          JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner




                                                    
      
    

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