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
          ------------------------------------X
          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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