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
     APPEAL OF                              DOCKET NO. BE 210096-RT
                                         :  
                                            RENT ADMINISTRATOR'S      
        MAE DALLAS,                         DOCKET NO. K 000458-OM
                           PETITIONER    : 
     ------------------------------------X                             

                  ORDER AND OPINION DENYING ADMINISTRATIVE APPEAL

     On May 8, 1987 the above-named petitioner refiled an Administrative Appeal 
     against an order issued on January 20, 1987 by the Rent Administrator, 92 
     31 Union Hall Street, Jamaica, New York,  concerning  the  rent-stabilized
     housing accommodation known as 82  Downing  Street,  Brooklyn,  New  York,
     Apartment 1C.

     The Administrative Appeal is being determined pursuant to  the  provisions
     of 9 NYCRR 2522.4.

     The issue herein is  whether  the  District  Rent  Administrator  properly
     determined the owner's application for a rent increase based upon a  major
     capital improvement.

     The owner filed an application on March 21, 1986 for a rent increase based 
     on a major capital improvement.  Specifically, the owner stated that a new 
     heating plant was installed in the subject building in June 1984 at a cost 
     of $30,000.

     The owner also certified that in February 1985, he  completed  service  on
     the tenants by mailing or delivering  to  each  of  them  a  copy  of  the
     Application Form RA-79, a copy of Notice Form RA-79N, and three copies  of
     Answer Form RTP. 3.

     No answers from tenants were received.

     The District Rent Administrator's  order,  appealed  herein,  granted  the
     owner a  major  capital  improvement  rent  increase  for  stabilized  and
     controlled apartments in the subject building based on the installation of 
     a new heating plant.

     On appeal, the petitioner-tenant  alleges,  in  substance,  that  the  new
     boiler breaks down frequently; that an inspector should be sent  to  check
     the "so-called" new boiler; and that she was never contacted by the  owner
     about anything concerning the new boiler.

     In response the owner insists  that  all  tenants  were  served  with  the
     original application, and that proof of the installation as  well  as  all
     necessary inspections and approvals were submitted.








          DOCKET NUMBER: BE 210096-RT
     After a careful  consideration  of  the  entire  evidence  of  record  the
     Commissioner is of the opinion that the administrative  appeal  should  be
     denied.

     Rent increases for major capital improvements are  authorized  by  Section
     2522.4 of the Rent Stabilization  Code  for  rent  stabilized  apartments.
     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.

     The record discloses that the owner substantiated its application  in  the
     proceeding below by  submitting  to  the  Administrator  documentation  in
     support of the application,  including  the  contractor's  certifications,
     copies of  contracts,  invoices,  estimates,  cancelled  checks,  and  the
     necessary governmental approvals and sign-offs for the work  in  question.
     The tenant has not submitted any  evidence  that  a  new  boiler  was  not
     installed and there is no reason to investigate this matter further.   The
     tenant is advised to file a complaint of decreased services if heat and/or 
     hot water are not being provided in accordance with the law.

     THEREFORE, in accordance with the Rent Stabilization Law and Code, it is 

     ORDERED, that this petition be and the  same  hereby  is  denied  and  the
     Administrator's order be and the same hereby is affirmed.

     ISSUED:






                                                                   
                                          JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner




                                                   
    

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