DOCKET NO.: BE 430370 RO
                                 STATE OF NEW YORK 
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK  11433

          APPEAL OF                               DOCKET NO.: BE 430370 RO

               Bak Ho Hum                         DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO.: LCS000506 OM



          On May 12, 1987 the above-named petitioner-owner timely refiled a 
          petition for administrative review against an order issued February 
          18, 1987 by a Rent Administrator concerning the housing 
          accommodations known as 108 Madison Street, New York, New York 
          wherein the Administrator denied the owner's application for a rent 
          increase based on a finding that the claimed installation was not 
          properly documented.

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

          The owner commenced this proceeding on March 25, 1985 by filing an 
          application for a rent increase based on a major capital 
          improvement, to wit, the installation of a new boiler in May 1984 
          at a cost of $15,500.

          The owner certified that all tenants were served with a copy of the 
          application and placed a copy of the tenant Review package in the 
          superintendent's office.  No tenants responded.

          On May 28, 1985, the Administrator asked the owner to submit an 
          affidavit that the gas boiler was paid in full in cash.  Various 
          necessary government approvals were also requested.

          The owner responded on August 13, 1986 stating that the approval 
          forms would be submitted as soon as the plumber who installed the 
          boiler could submit them.

          No further submissions were received and the owner's application 
          was denied.

          DOCKET NO.: BE 430370 RO

          In the petition for administrative review, the owner seeks 
          reversal of the Administrator's order and resubmits the same 
          documents that had been submitted to the Administrator.

          Six tenants responded to the petition and complained that services 
          in the building are worse than ever.

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

          The owner has failed to substantiate proof of payment of the 
          $15,500 for the boiler.  Division policy, as stated in Policy 
          Statement 90-10 provides that a claimed MCI cost must be supported 
          by adequate documentation which may consist of any one of the 

               (1) Cancelled check(s) contemporaneous with the 
               completion of the work.
               (2) Invoice receipt marked paid in full contemporaneous 
               with the completion of the work 
               (3) Signed contract agreement
               (4) Contractor's affidavit indicating that the 
               installation was completed and paid in full.

          The policy statement further provides that additional documentation 
          may be required if a claimed cost warrants further inquiry.

          The owner herein has not submitted any of the aforementioned 
          documents despite repeated requests and ample time and opportunity 
          to do so.  The owner claims that payment was made in cash so that 
          cancelled checks do not exist.  An invoice stamped "paid" by the 
          contractor on June 4, 1985 is not contemporaneous with an 
          installation made more than a year earlier in May 1984.  The signed 
          contract does not establish the dates and amounts of actual 
          payments.  The owner was requested to submit an affidavit by the 
          contractor that the installation was paid in full but failed to 
          comply.  In the absence of such an affidavit, the owner has not 
          adequately documented the claimed cost and the application was 
          properly denied.

          DOCKET NO.: BE 430370 RO

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


                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner


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