BI 430284 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

          ------------------------------------X 
          IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
          APPEAL OF                              DOCKET NO. BI 430284 RO
                                              :  DRO DOCKET NO.ZAK 430017-OM
               301 EAST 50 COMPANY                     

                                PETITIONER    : 
          ------------------------------------X                             
             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


               On September 25, 1987, the above-named petitioner-owner filed 
          a Petition for Administrative Review against an order issued on 
          September 17, 1987, by a Rent Administrator concerning the housing 
          accommodations known as 301 East 50th Street, New York, New York, 
          Various Apartments, wherein the Rent Administrator determined that 
          the owner was not entitled to a rent increase based upon a major 
          capital improvement (hereafter MCI). 

          The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2202.4 of the Rent and Eviction Regulations 
          and 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 November, 1986, by 
          filing an application for a rent increase based on the 
          installation of a reconditioned burner at a cost of $4,400.00.

          In Order Number ZAK 430017-OM, the Rent Administrator 
          determined that the installation of a reconditioned burner did not 
          qualify as an MCI.

          In this petition, the owner contends in substance that the 
          installation of a reconditioned burner should qualify as an MCI 
          because it was not the reconditioning of the previous burner in 
          the subject premises, but was the installation of a different 
          burner with newly reconditioned parts.

          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 










          BI 430284 RO
          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 Commissioner is of the opinion that only the installation 
          of a completely new burner would qualify as an MCI.  The 
          installation of a reconditioned burner is considered ordinary 
          maintenance and repair work for which no rent increase is 
          warranted.

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