DOCKET NO.: BD 130189 RT
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK  11433

          APPEAL OF                               DOCKET NO.: BD 130189 RT                                          
               Mark Stein                         RENT ADMINISTRATOR'S      
                                                  DOCKET NO.: ZQCS 886 OM   


               On April 6, 1987, the above-named petitioner timely refiled 
          a petition for administrative review of an order issued on 
          January 29, 1987 by a Rent Administrator concerning the housing 
          accommodation located at 83-15 116th Street, Richmond Hill, New 
          York, wherein the Rent Administrator determined that the owner 
          was entitled to a rent increase based on Major Capital 
          Improvements (MCI). 

               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 the petition for review.

               The current owner, by its agent, commenced this proceeding 
          on August 16, 1985 by filing an application for a rent increase 
          based on Major Capital Improvements consisting of a new oil 
          burner and boiler, installed in 1984 by the previous owner.  

               In response to a DHCR request, the owner certified that on 
          December 10, 1985 it served each tenant with a copy of the 
          application and placed a copy of the entire application including 
          all required supplements and supporting documentation with the 
          resident superintendent of the subject building.

               Although the tenants were afforded the opportunity to 
          respond to the owner's application, no responses were filed by 
          the tenants.

          DOCKET NO.: BD 130189 RT

               On January 29, 1987 the Rent Administrator issued the order 
          here under review, finding that the installations qualified as 
          major capital improvements, determining that the application 
          complied with the relevant laws and regulations based upon the 
          supporting documentation submitted by the owner, and allowing 
          appropriate rent increases for rent-controlled and rent- 
          stabilized apartments.

               In his petition for administrative review, the tenant 
          objects to the Rent Administrator's order, alleging, among other 
          things, that he was not notified that work had been completed 
          which could result in this application; that the improvement was 
          made in 1984 before he moved in in February, 1985; that he was 
          not informed that this application was pending; and that in 
          February and March 1985 there occurred repeated breakdowns of the 
          heating system resulting in no heat or hot water for days at a 

               In answer to the tenant's petition, the owner alleges, among 
          other things, that all tenants were afforded an opportunity to 
          respond to the application; that it was legally entitled to apply 
          for the rent increase, and has presented the proper documentation 
          for the increase; that it is continuing to provide all essential 
          and/or required services.

               After careful consideration the Commissioner is of the 
          opinion that this petition should be denied.

               Rent increases for major capital improvements are authorized 
          by Section 2204. of the Rent and Eviction Regulations for rent 
          controlled apartments and Section 2522.4 of the Rent 
          Stabilization Law for rent stabilized apartments.  Under rent  
          control, an increase is warranted where there has been since July 
          1, 1970 a major capital improvements 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 
          mainenance of the structure; and replace an item whose useful 
          life has expired.

               The record in the proceeding below discloses that the 
          instant application was filed by an agent on behalf of the 
          current owner, predicated on work performed in 1984 by a previous 
          owner; and that a Certification of Notice of the application on 
          the tenants had been submitted.  

               The Administrator's determination was rendered after full 

          DOCKET NO.: BD 130189 RT

          consideration of documentation submitted by and on behalf of the 
          owner herein including the contract for the installation of a new 
          oil burner and boiler, paid invoices and cancelled checks in 
          substantiation of the cost of said improvement.  In addition, the 
          record contains copies of all necessary governmental approvals 
          for the installation as well as the operation of the new heating 
          system.  Accordingly, the Commissioner finds that the 
          Administrator properly determined that there was an MCI of a new 
          oil burner and boiler and the appropriate rent adjustment 

               The Commissioner further finds that the tenant's contention 
          that he should have been afforded notice prior to the filing of 
          the owner's application is without merit: the tenant was served 
          with notice at the same time that all the building's tenants were 
          served, and was given the opportunity to respond to the owner's 
          application and to participate in the proceeding.  The tenant had 
          the benefit of the new heating system throughout his tenancy. The 
          Commissioner finds that allegations made for the first time on 
          appeal are insufficient to bar the MCI increase.

               The determination herein is without prejudice to the right 
          of the tenant to file an application with the DHCR for a 
          reduction in rent if the owner is not now maintaining all 
          required services.

               THEREFORE, in accordance with the Rent and Eviction 
          Regulations for New York City, and the Rent Stabilization Law and 
          Code,  it is

               ORDERED, that this administrative appeal be and the same 
          hereby is denied and that the order of the Rent Administrator be 
          and the same hereby is affirmed.


                                                  ELLIOT SANDER
                                                  Deputy Commissioner

          DOCKET NO.: BD 130189 RT


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