CA 110172 RT
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                            DOCKET NO.: CA 110172 RT
                                                           CA 130165 RO
          Sam & Miriam Kuncman, Tenant, and
          Seminole Realty c/o D & M Realty     DISTRICT RENT ORDER
          Owner                                DOCKET NO.: ZAF 130143 OM



          The above-named petitioners  filed  Petition  for  Administrative
          Review  against  an  order  issued  December  10,  1987  by   the
          Administrator,(Gertz Plaza) concerning the housing accommodations 
          known as 72-72 112th Street,  Forest  Hills,  New  York,  various

          The  tenant's  and  the  owner's   administrative   appeals   are
          consolidated for uniform disposition herein.

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

          The owner commenced the proceeding below by filing an application 
          for rent increases based on various  Major  Capital  Improvements

          The Administrator's order appealed herein partially  granted  the
          owner's  application  and  granted  MCI  increases  for   various
          installations including a new roof, thermal windows, entrance and 
          vestibule doors, and elevator upgrading.  The order  denied  such
          portion of the application as pertained  to  resurfacing  of  the
          sidewalk, motorized zone valves in boiler  room,  new  mailboxes,
          and vestibule panel for intercom system.

          On appeal, the petition-tenant alleges, in  substance,  that  the
          lease  in  effect  at  the  time   of   the   issuance   of   the
          Administrator's  order  did  not  contain  specific   information
          pertaining to a MCI rent increase adjustment.  In response to the 
          tenant's petition the  owner  states,  in  substance,  that  said
          lease had a rider which advised the tenant  about  a  future  MCI
          rent increase.

          In its appeal the petitioner-owner states, in substance, that the 
          rent increases should be granted for the disallowed  items  since
          they were depreciable and building-wide thus  constituting  major
          capital improvements; and that the mailboxes are  located  behind
          locked doors and thereby qualify for a  MCI  rent  increase.   In
          response to  the  owner's  petition,  various  tenants  urge,  in

           CA 110172 RT
          substance, that the  Administrator's  order  should  be  affirmed
          since  the  disallowed  items  do  not  meet   the   definitional
          requirement for a MCI.

          After careful consideration of the entire record the Commissioner 
          is of the opinion  that  the  administrative  appeals  should  be

          Rent increases for major capital improvements are  authorized  by
          Section 2202.4 of the Rent and  Evictions  Regulations  for  rent
          controlled  apartments   and   Section   2522.4   of   the   Rent
          Stabilization  Code  for  rent  stabilized  units.   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
          maintenance of the structure; and replace an  item  whose  useful
          life  has  expired.   Piecemeal  work  or  ordinary  repairs  and
          maintenance does not constituted work for which a  rent  increase
          adjustment is warranted under current and past procedure.

          At the outset, the Commissioner  notes  that  for  the  MCI  rent
          increase granted by the Administrator's  appealed  herein  to  be
          collectible during the term of the petitioner-tenant's  lease  is
          an issue that must be decided in a separate  complaint  filed  by
          the tenant.  The Administrator's order  dealt  with  the  owner's
          general entitlement to an increase for the entire  building.   If
          the tenant took occupancy pursuant to a vacancy lease  commencing
          after the owner had filed  its  application,  the  vacancy  lease
          would have to contain a specific clause advising  the  tenant  of
          the owner's MCI  application.   If  the  tenant  was  already  in
          occupancy pursuant to a vacancy  or  renewal  lease,  that  lease
          would only have to contain  a  general  clause  authorizing  rent
          adjustments pursuant to orders of the Rent  Guidelines  Board  or

          It is established position of the Division that the  installation
          of a new heating system or major components thereof including all 
          related work needed for the installation  constitute  a  MCI  for
          which a rent increase adjustment may be warranted.  However, the 
          installation of Motorized Zone valves in and  of  itself  do  not
          constitute a MCI but rather a repair for which no  rent  increase
          is warranted.  Also, the installation of a  vestibule  panel  for
          intercom system would not constituted a major capital improvement 
          unless it was performed in conjunction with the installation of a 
          complete intercom system.

          A review of the record before the  Administrator  discloses  that
          the new mailboxes were reinstalled in the same, location  as  the
          old  ones  in  the  inner  vestibule  area.    Accordingly,   the
          Commissioner is of the opinion and finds that the installation of 
          the mailboxes do not meet with the additional  requirements  that
          they are relocated from outer vestibule to an area behind  locked
          doors; thus the Administrator properly denied MCI  rent  increase
          for same.

           CA 110172 RT
          Concerning the resurfacing of  the  sidewalk,  the  Division  has
          previously held that such item is not eligible for major  capital
          improvement rent increase (Accord:  BJ  40076-RO;  AL  430206  RT
          through AL 430217-RT, consolidated proceeding).

          Based on the entire evidence of record,  the  Commissioner  finds
          that  the  Administrator's  order  was  correct  and  should   be

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

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


                                                       ELLIOT SANDER
                                                       Deputy Commissioner

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