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
     APPEALS OF                             DOCKET NOS.: BG 610173-RT
                                         :               BG 610192-RT
       MIGDALIA MONA and                    DRO DOCKET NO.: BS 000414-OM
       MARIA GONZALEZ,
                           PETITIONERS   : 
     ------------------------------------X                             

                 ORDER AND OPINION DENYING ADMINISTRATIVE APPEALS

     On July 8, 1987 and July 20, 1987 the above-named petitioner-tenants filed 
     Administrative Appeals against an order issued on June  29,  1987  by  the
     District Rent Administrator, 92-31 Union Hall Street, Jamaica,  New  York,
     concerning the housing accommodations known  as  176  East  176th  Street,
     Bronx, New York, Apartments 3G and 2F.

     The appealed order of the District Rent Administrator determined that  the
     owner's installation of building-wide aluminum replacement  windows  at  a
     cost of $99,792.00, constituted a Major Capital Improvement  (MCI),  which
     warranted  appropriate  rent  increases  for  rent  controlled  and   rent
     stabilized apartments.

     The Commissioner has reviewed all of the evidence in the  record  and  has
     carefully considered that portion of the record  relevant  to  the  issues
     raised by the administrative appeals.

     In their petitions, the tenants contend, in substance,  that  the  windows
     were improperly installed and that the owner had  failed  to  make  sundry
     repairs.

     In  response,  the  owner  asserted  that  the  replacement  windows  were
     installed properly and that it has always been willing  to  address  known
     service or repair complaints.

     The Commissioner is of the opinion that the petitions should be denied.  

     Rent increases for MCI's are authorized by Section 2202.4 of the Rent  and
     Eviction Regulations for rent controlled apartments and Section 2522.4  of
     the Rent Stabilization Law for rent  stabilized  apartments.   Under  rent
     control, an increase is warranted where there has been since July 1,  1970
     a MCI 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.  In either case, the  rent  increase  is  computed  based  on  an
     amortization of the cost of the improvement.









          DOCKET NUMBER: BG 610173-RT
     The record in the instant case indicates that the owner properly  complied
     with  the  application  procedures  for  a  MCI  and  the  District   Rent
     Administrator properly  computed  the  appropriate  rent  increases.   The
     tenants have not established that the increases should be revoked.

     Moreover, the file reveals that although there are sixty  (60)  apartments
     in the subject building, none of  the  tenants  timely  responded  to  the
     owner's MCI application.

     The Commissioner notes that an administrative appeal  is  not  a  de  novo
     proceeding,  but  is  limited  to  the  issues  and  evidence  before  the
     Administrator.

     Accordingly, the issues raised by the petitioners  cannot  now  be  raised
     for the first time on appeal.

     However, this order  and  opinion  is  issued  without  prejudice  to  the
     tenants' rights to file an application for  a  rent  reduction  due  to  a
     diminution of service should the facts so warrant.

     The Commissioner notes that in an order and opinion und r  Docket  No  BG-
     630171-RT  issued  on  April  16,  1991,  the  Commissioner   denied   the
     administrative appeals of other tenants of the  subject  premises  wherein
     similar objections to the District Rent Administrator's order were raised.

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

     ORDERED, that these administrative appeals be, and the  same  hereby  are,
     denied and the order of the District Rent Administrator be, and  the  same
     hereby is, affirmed.

     ISSUED:







                                                                   
                                     JOSEPH A. D'AGOSTA
                                     Deputy Commissioner




                                                   
    

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