BH 410302 RT

                                  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. BH 410302 RT
                                              :DRO DOCKET NO. Z-LS 000601-OM
          VARIOUS TENANTS OF 320 WEST 30TH                     
          STREET
                                PETITIONER    : 
          ------------------------------------X                             
             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


               On August 15, 1987, the above-named petitioner-tenants filed a 
          Petition for Administrative Review against an order issued on July 
          13, 1987, by a Rent Administrator, concerning the housing 
          accommodations known as 320 West 30th Street, New York, New York, 
          Various apartments, wherein the Rent Administrator determined that 
          the owner was entitled to a rent increase based on a major capital 
          improvement. 

          The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2522.4 of the Rent Stabilization Code. 

          The issue herein is whether the Rent Administrator's order 
          was warranted.

          The Commissioner has reviewed all of 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 in May 1985 by filing an 
          application for a rent increase based on the major capital 
          improvement of the installation of a new oil burner for the 
          subject building at a total cost of $57,000.00.

          On July 13, 1987, the Rent Administrator issued the order 
          here under review finding that the installation qualified as a 
          major capital improvement, 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 stabilized apartments.

          In this petition, the tenants allege in substance that they 
          did not consent to the installation of the new oil burner and that 
          the owner is required to provide adequate heat and hot water so 
          that the owner should not be entitled to a major capital 
          improvement rent increase for such installation.

          The Commissioner is of the opinion that this petition should 
          be denied.










          BH 410302 RT

               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 
          Code 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 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 
          maintenance of the structure, and replace an item whose useful 
          life has expired.

          The record in the instant case indicate that the owner 
          correctly complied with the application procedures for a major 
          capital improvement and the Rent Administrator properly computed 
          the appropriate rent increases.  It is noted that tenant consent 
          is not required in order for the owner to obtain a major capital 
          improvement rent increase and that the owner's obligation to 
          provide adequate heat and hot water does not bar the owner from 
          obtaining a major capital improvement rent increase upon the 
          installation of a new oil burner.  Accordingly, the Rent 
          Administrator's order was warranted.

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

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

          ISSUED



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                                                    
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