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   ADMINISTRATIVE REVIEW
          IN THE MATTER OF THE ADMINISTRATIVE     DOCKET NO.: BJ410364RO
          APPEAL OF
                    
                  Bernard Gans
                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO: AE430033OM
          ------------------------------------X

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          On October 6, 1987 the above-named petitioner-owner filed an 
          administrative appeal against an order issued on September 4, 1987 
          by the Rent Administrator (92-31 Union Hall Street, Jamaica, New 
          York) concerning the housing accommodations known as 111 West 16th 
          Street, New York, New York, various apartments.

          This proceeding was initially commenced on July 9, 1986 by the 
          owner filing an application for a major capital improvement (MCI) 
          rent increase based on the installation of a new roof and a new 
          boiler and burner at the premises at a total claimed cost of 
          $50,200.00. The owner submitted documentation in support of the 
          application, including copies of cancelled checks totaling 
          $46,650.00.

          Subsequent thereto, the owner was requested to submit, among other 
          things, proof of payment of $3,550.00 in costs claimed for the 
          boiler and burner installation.

          In response owner resubmitted copies of two checks that totaled 
          $3,500.00.

          On September 4, 1987 the Rent Administrator issued an order 
          granting an MCI rent increase based on the installation of a new 
          roof and a new boiler and burner at the premises. The Administrator 
          disallowed as unsubstantiated claimed costs in the amount of 
          $3,550.00.

          In this petition the owner contends that the total cost of the new 
          boiler and burner is  $40,000.00 as indicated in the application 
          and submits copies of cancelled checks totalling $39,950.00 in 
          substantiation thereof.

          Adm. Rev. Docket No. BJ410364RO














          Various tenants submitted responses to the petition objecting, in 
          substance, to the rent increase.

          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 reveals that the owner submitted a copy of a cancelled 
          check in the amount of $3,500.00 in substantiation of part of the 
          cost of the boiler and burner installation for the first time on 
          administrative appeal. The Commissioner notes that although the 
          owner responded to the Administrator's request for said proof of 
          payment, the evidence submitted consisted of copies of two checks 
          that were originally included with the owner's MCI application and 
          was therefore insufficient. The owner provides no explanation for 
          his failure to submit the requested documentation during the 
          proceeding below. Accordingly, the Commissioner finds that the 
          Administrator properly disallowed claimed costs in the amount of 
          $3,550.00 as unsubstantiated.

          THEREFORE, in accordance with the Rent and Eviction Regulations and 
          the Rent Stabilization Law and Code, it is

          ORDERED, that this petition be, and the same hereby is, denied, and 
          that the Rent Administrator's order be, and the same hereby is, 
          affirmed.

          ISSUED:







                                                                             
                                                    JOSEPH D' A. ACOSTA
                                                    Deputy Commissioner






















    

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