BI 130080 RO
                                  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



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          IN THE MATTER OF  THE  ADMINISTRATIVE      ADMINISTRATIVE  REVIEW
          APPEAL OF                               DOCKET NO.  BI 130080 RO

                 MAPLE COURT ASSOCIATES 
                           C/O                    DRO DOCKET NO. ZAB 130071 OM
                      REHAB. ASSOC.,

                                  PETITIONER
          ----------------------------------X                                   


                  ORDER AND OPINION GRANTING ADMINISTRATIVE APPEAL
                                       IN PART
                                         AND
                         MODIFYING THE ADMINISTRATOR'S ORDER


          On September 28, 1987 the above-named petitioner-owner  filed  an
          Administrative Appeal against an order  issued  on  September  7,
          1987 by the District Rent Administrator  (Gertz  Plaza,  Jamaica,
          New York) concerning the housing accommodations  known  as  35-27
          81st Street, Queens, New York, Various  Apartments,  wherein  the
          Administrator partially granted the owner's application for Major 
          Capital Improvement (MCI) rent increases for the  controlled  and
          stabilized apartments in the subject premises.

          The owner commenced  the  proceeding  below  by  filing  its  MCI
          application  with  the  Administrator  in  April  of  1986.   The
          application  was  based  upon   the   installation   of   a   new
          boiler/burner,  roof,  and  pointing  of  the  subject  premises.
          Various  tenants  filed  answers   objecting   to   the   owner's
          application.  The tenants stated, among other  things,  that  the
          heating in the building was still inadequate, that a complete new 
          roof was not installed, and that there were still water leaks  at
          the premises.

          The  District  Rent  Administrator's  order,   appealed   herein,
          disallowed  (I) part of the boiler/burner costs as  not  properly
          substantiated; (II) costs of "roof repairs"; and (III)  costs  of
          "pointing where necessary completed after  issuance  of  Bulletin
          84-4...".

          On appeal, the petitioner-owner contends, in substance, that  (A)
          pointing where necessary is considered an MCI and is not required 
          to be building-wide; (B) the installation of a complete 90  pound
          cap sheet over the  entire  roof  surface  (approximately  11,500
          square feet) qualified as an MCI; and (C)  cancelled  checks  for
          the total costs of the boiler/burner installation were  submitted
          with  the  original  MCI  application.    In   support   of   its
          contentions, the petitioner submitted copies of cancelled  checks






          BI 130080 RO
          for the boiler/burner installation.

          In response  to  the  petition,  various  tenants  filed  answers
          contending, among other things, that (1) the roof was patched up; 
          (2) pointing was only done on areas that leaked;  (3)  there  are
          still water leaks at the  premises;  (4)  the  boiler/burner  was
          installed for the owner's benefit; (5) the heat in  the  building
          is sporadic; and (6) the work done constituted necessary repairs.

          After a careful consideration of the entire  evidence  of  record
          the Commissioner is of the opinion that the administrative appeal 
          should be granted in part and the Administrator's order  modified
          in accordance with this order and opinion.

          Regarding  the  owner's   contentions   with   respect   to   the
          installation of a new roof and  pointing  of  the  premises,  the
          record discloses that a physical inspection of the  premises  was
          conducted by this Division on October 14, 1986.  This  inspection
          revealed peeling paint/plaster and water stains on the walls  and
          ceilings of apartments 3-E, 6-H, 6-J, and 6-D.  Furthermore,  the
          inspector noted that the building was pointed only  at  areas  on
          the upper floors of the building, that there was an area  of  the
          roof that did not appear to have been installed at the same  time
          as the rest of the roof, and that the tenants below this area had 
          water  stains  and  peeling  paint/plaster.   Thus,  the   record
          indicates that the pointing work was not  done  everywhere  where
          necessary, that the  new  roof  installation  was  not  complete,
          and/or that the pointing and roof work done was unworkmanlike.

          However, concerning the boiler/burner  installation,  the  record
          discloses that the owner submitted to the Administrator copies of 
          checks representing payment for this work in  the  total  sum  of
          $44,560.00.  Of this sum the Administrator  disallowed  $4,000.00
          since the back of a cancelled  check  for  this  amount  was  not
          submitted.  Since the Administrator did not afford the petitioner 
          an  opportunity  to  re-submit   this   check   with   proof   of
          cancellation, and since it was  submitted  on  this  appeal,  the
          Commissioner deems it appropriate to modify  the  Administrator's
          order to add $4,000.00 to the allowable costs of the  improvement
          herein.  Thus, the allowable cost of the  MCI  herein  is  hereby
          modified  to  be  $44,560.00,  the  MCI  rent  increase  for  the
          controlled apartments is modified  to  be  $3.54  per  room,  per
          month, and the permanent and temporary  increases  in  stabilized
          rents are modified to be 2.84.%.

          With regard to the tenants' contention of inadequate heating, the 
          Commissioner notes that the record does not  disclose  an  appeal
          against the Administrator's order by the tenants.   In  addition,
          this order is issued without  prejudice  to  the  tenants  filing
          complaints with this Division based on a decrease in services.

          On the basis of the entire evidence of record, it is  found  that
          this appeal should be granted in  part  and  the  Administrator's
          order modified in accordance with this order and opinion.

          Any arrears due to the owner as a result of  this  order  may  be
          paid off by the tenants in twenty four equal monthly installments 
          during the next twenty four months.







          BI 130080 RO
          THEREFORE, in accordance with the applicable  provisions  of  the
          Rent Stabilization Code, the Rent and  Eviction  Regulations  for
          New York City, and Operational Bulletin 84-1, it is

          ORDERED, that administrative appeal be, and the  same  hereby  is
          granted in part; and that the Administrator's order be,  and  the
          same hereby  is  modified  in  accordance  with  this  order  and
          opinion, and as so modified, said order is hereby affirmed.


          ISSUED:
                                                  ------------------------
                                                  ELLIOT SANDER
                                                  Deputy Commissioner
           
             
                                          
    

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