DOC. NO.: BD 230553-RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                               DOCKET NO. BD 230553-RO
                         SAM HAGE,            :   D.R.O. DOCKET NO.:
                                  PETITIONER  :             ZKCS 000469-OM

                                        ON APPEAL

          On April 8, 1987, the above named petitioner-owner timely  refiled  a
          Petition for Administrative Review against an order issued on January 
          30, 1987, by  the  District  Rent  Administrator,  92-31  Union  Hall
          Street, Jamaica, New York, concerning housing accommodations known as 
          various apartments of  9217  -  Third  Avenue,  Brooklyn,  New  York,
          wherein the District Rent Administrator partially granted the owner's 
          application for a rent increase based upon the installations of major 
          capital improvements (MCI).

          The issue in this appeal is whether the District Rent Administrator's 
          order was warranted.

          The applicable sections of the law are Section  2522.4  of  the  Rent
          Stabilization Code and Section 2202.4 of the New York City  Rent  and
          Eviction Regulations.

          The Commissioner has reviewed all the evidence in the record and  has
          carefully considered that portion  of  the  record  relevant  to  the
          issue raised by the administrative appeal.

          The owner commenced this proceeding on February 20, 1985 by filing an 
          application for a rent increase based on the installation of  several
          MCI's one of which being a new oil burner/boiler costing $8,500.00.

          None of the tenants objected to the owner's MCI application.

          In Docket Number ZCKS 000469-OM issued January 30, 1987, the District 
          Rent Administrator partially granted the owner's  MCI's  application,
          but  excluded  $3,600.00  in  costs   for   the   oil   burner/boiler
          installation due to the owner's failure  to  substantiate  adequately
          with  supporting  documentation  the   total   cost   for   the   oil
          burner/boiler installation.

          In this petition, the owner contends in substance that  the  District
          Rent Administrator's order is incorrect and  should  be  modified  to
          include  the  $3,600.00  in  costs  which   was   excluded   by   the

          None of the tenants submitted a response to the owner's petition.

          DOC. NO.: BD 230553-RO
          The Commissioner is of the  opinion  that  this  proceeding  must  be
          remanded for further processing.

          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
          law 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  structure.   Under  rent  stabilization,  the  improvement   must
          generally abe 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.

          The evidence of record in the instant case indicates that  the  owner
          substantiated  the  total  cost  of  $8,500.00  for   the   new   oil
          burner/boiler installation by submitting to the Administrator  copies
          of the contract, a paid invoice, and three cancelled checks totalling 
          $8,500.00.    Accordingly,   the   Commissioner   finds   that    the
          Administrator improperly excluded $3,600.00  from  the  cost  of  the
          above-mentioned installation.  Thus, this proceeding is  remanded  to
          the District Rent Administrator for the purpose  of  recomputing  the
          amount and collection schedule of the MCI increase.

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

          ORDERED, that this petition be, and the same hereby  is,  granted  to
          the  extent  of  remanding  this  proceeding  to  the  District  Rent
          Administrator for further processing in accordance  with  this  order
          and opinion.


                                             ELLIOT SANDER
                                             Deputy Commissioner


                              ADMINISTRATIVE REVIEW BUREAU
                                   COVERING MEMORANDUM

          ARB Docket No.:               BD 230553-RO

          DRO Docket No/Order No.:      ZKCS 000469-OM

          Tenant(s):                    Various

          Owner:                        Sam Huge

          Code Section:                 RSC 2522.4

          Premises:                     9217-3rd Ave., various apts.,
                                        Brooklyn, N.Y.
          Order and Opinion Remanding Proceeding on Appeal

               Administrator improperly denied a portion of the cost of an  MCI
               due to the owner's failure to adequately substantiate  the  full
               cost of the MCI.  Record indicates  that  the  owner  did  fully
               substantiate the total cost of the installation with  copies  of
               cancelled checks and paid invoice.

               Proceeding remanded  to  recompute  the  amount  and  collection
               schedule for the MCI increase.


          Processing Attorney:                                             

          Supervising Attorney:                                           

          Deputy Counsel:                                                  

          Deputy Commissioner:                                             

          Mailed copies of Order and Determination to:
                           Tenant's Atty             
                           Owner's Atty              

                           Date:              :  by               

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