BI 130193 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. BI 130193 RT
                                              :DRO DOCKET NO. Z-QS000939-OM
          VARIOUS TENANTS OF 209-10 41ST AVE.                     

                                PETITIONER    : 
          ------------------------------------X 

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


               On August 31, 1987, the above-named petitioner-tenants  filed
          a Petition for Administrative Review against an  order  issued  on
          July 29, 1987, by a Rent  Administrator,  concerning  the  housing
          accommodations known as 209-10 41st Avenue,  Brooklyn,  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 on January 15,  1986,  by
          filing an application  for  a  rent  increase  based  on  a  major
          capital improvement, to wit: an oil  burner  and  boiler  and  two
          compactors.  The owner also applied  for  an  increase  for  black
          topping the playground and landscaping but this was denied.

               In support of its application, the owner submitted copies  of
          cancelled  checks,  contracts  and  invoices   showing   it   made
          expenditures totalling $30,800 for the installation of the  boiler
          and burner and the two compactors.

               In answer to the application, the tenants stated in substance 
          that the burner and the two compactors had to be replaced  because
          they were constantly out of service and apparently could no longer 
          be repaired so that this work should be  considered  as  necessary
          replacements and not major capital improvements.

               On July 29, 1987, the Rent  Administrator  issued  the  order
          under review herein finding that the installation  of  the  boiler
          and burner and the two compactors qualified as a major capital 








          BI 130193 RT


          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
          contrary to their answer below, they have no  knowledge  that  the
          boiler and burner and the two compactors were  ever  replaced  but
          that there is a strong possibility that these  items  were  merely
          repaired.

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

               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  indicates  that  the  owner
          correctly complied with the application  procedures  for  a  major
          capital improvement and the Rent Administrator  properly  computed
          the appropriate rent increases.  The tenants have not  established
          that the increases should be revoked and  have  made  inconsistent
          allegations in the proceeding before the Rent Administrator  where
          they  claimed  the  improvements  were  made  but  should  not  be
          considered major capital improvements, and  at  the  appeal  level
          where they claim that perhaps only repairs were made and  the  new
          equipment never installed.  It is  noted  that  the  tenants  have
          submitted no evidence in support of  their  allegation  on  appeal
          that the improvements  were  never  made  whereas  the  owner  has
          submitted  all  the  required  documentary  evidence  showing  the
          improvements  were  in   fact   made.    Accordingly,   the   Rent
          Administrator's order was warranted.





















          BI 130193 RT
               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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