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.:  BK430086RT
          APPEAL OF
          VARIOUS TENANTS OF 143-149 WEST 
          96TH STREET, NEW YORK, NY. 
                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO:  EA430116OM 
          ------------------------------------X

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          The above named tenants timely filed a petition for administrative 
          review (PAR) against an order issued on September 25, 1987 by the 
          Rent Administrator (Gertz Plaza) concerning the housing 
          Accommodations known as 143-149 West 96th Street, New York, New 
          York, various apartments, wherein the Administrator determined that 
          the owner was entitled to a rent increase based on a major capital 
          improvement (MCI).

          The owner commenced this proceeding on May 22, 1986 by filing an 
          application for an MCI rent increase predicated on the installation 
          of a new burner and boiler.

          The Rent Administrator's order, appealed herein, granted the 
          owner's application and authorized rent increases for the 
          controlled and stabilized apartments based upon total approved 
          costs of $50,000.00

          In this petition for administrative review, the tenant request 
          reversal of the Administrator's order and contend, in substance, 
          that the replacement of the original boiler was long overdue since 
          such boiler was 56 years old; that the old boiler had long been 
          depreciated and its replacement should not be considered a capital 
          improvement but a necessary replacement in order to fulfill the 
          legal requirements for a warrant of habitability which each 
          building and apartment must have; that heat is not furnished on a 
          continuous basis when the outside temperature requires it; that the 
          "B" line does not get continuous not water; and that since the 
          additional charge for the boiler is subsumed into the base rent, 
          every five years the owner will receive an additional $50.000 for 
          the boiler installed in 1985.


















          ADMIN. REVIEW DOCKET NO.:  BK430086RT

          In response to the tenants' petition, the owner filed an answer 
          stating, in substance, that the boiler is in perfect condition; 
          that the problem on the "B" line of infrequent hot water was not a 
          boiler problem but a plumbing problem which has since been 
          corrected; and that the boiler is periodically reinspected by the 
          contractor.  Submitted with the owner's response, is a copy of a 
          letter from Stuyvensant Fuel Service Corp. stating that the heating 
          system is in proper operating condition.

          After a careful consideration of the entire evidence of record, 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 
          installations involved wherein, to replace old items the useful 
          lives of which have expired, meet the definitional requirement of 
          a major capital improvement.

          With respect to the tenant's contention regarding the adequacy of 
          the boiler/burner, the Commissioner notes that Division records 
          disclose that there are no rent reduction orders based on the 
          owner's failure to maintain services of a building-wide nature 
          outstanding against the subject premises nor have any heat/hot 
          water complaints been sustained by the Division either prior to or 
          subsequent to the issuance of the order appealed herein.

          This determination is without prejudice to the rights of the 
          tenants filing an application with the Division for a rent 
          reduction based upon a decrease in service, if the facts so 
          warrant.

          Turning to the tenants' contention that the MCI rent increase 
          should not form a permanent part of the rent structure, the 
          Commissioner notes that the New York State Court of Appeals in the 
          case of Matter of Ansonia Residents Association v DHCR ruled that 
          rent regulatory Law mandate that the increase be permanent.

          THEREFORE, in accordance with the Rent Stabilization Law and Code 
          and the Rent and Evictions Regulations for New York City, it is  
             
                                          2








          ADMIN.  REVIEW DOCKET NO.:  BK430086RT

          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 A. D'AGOSTA
                                                  Deputy Commissioner

































                                          






























    

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