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.: BG 130343-RO
                                         :  
                                            DRO DOCKET NO.: ZAH 130007-OM
       JOHN D. BELANICH,
                           PETITIONER    : 
     ------------------------------------X                             


           ORDER AND OPINION GRANTING IN PART ADMINISTRATIVE APPEAL AND
                          REMANDING PROCEEDING ON APPEAL


     On July 10, 1987 the above-named petitioner-owner filed an  Administrative
     Appeal against an order issued on June  30,  1987  by  the  District  Rent
     Administrator (Gertz Plaza, Jamaica,  New  York)  concerning  the  housing
     accommodations known as 37-50 81st  Street,  Jackson  Heights,  New  York,
     Various  Apartments,  wherein  the  Administrator   denied   the   owner's
     application for major capital improvement (MCI)  rent  increases  for  the
     stabilized and controlled apartments in the subject premises.

     The owner commenced the proceeding below by  filing  its  MCI  application
     with the Administrator in February of 1987 based on the waterproofing  and
     pointing of the premises.

     The District Rent Administrator's order, appealed herein, determined  that
     the work herein did not constitute an MCI.

     On appeal, the petitioner-owner submitted an affidavit from its contractor 
     in which the contractor stated, in substance, that he examined the  entire
     exterior  wall  area  of  the  subject  premises  and,  based  upon   such
     examination, waterproofed and pointed all areas where it was required.

     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 this proceeding  remanded  to  the  Administrator  for
     further processing in accordance with this order and opinion.

     The record discloses that the owner substantiated his MCI  application  in
     the proceedings below  by  submitting  documentation  in  support  of  the
     application,  including  the  contractor's  affidavit  and  certification,
     proposal, diagram, and cancelled checks for the work  in  question.   This
     documentation indicates  that  approximately  2,500  square  feet  of  the
     subject 16-unit building was waterproofed/pointed and that this  work  was
     done on all the areas where necessary.

     Thus,  this  proceeding  should  be  remanded  to  the  Administrator  for
     completion of processing of the owner's application.








          DOCKET NUMBER: BG 130343-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 the Administrative appeal be, and the same hereby is granted 
     to the extent of  remanding  this  proceeding  to  the  Administrator  for
     further processing in accordance with this order and opinion.   The  order
     and determination of the Administrator remains in full  force  and  effect
     until a new order is issued upon remand.

     ISSUED:












                                                                   
                                     ELLIOT SANDER
                                     Deputy Commissioner