CK 610055-RT
                                  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. CK 610055-RT
                                                           CK 610171-RT
               Rufina Cortes                               CK 610172-RT
               Gloria Cruz
               Elizabeth Justiniano            DISTRICT RENT 
                                               ADMINISTRATOR'S
                                               DOCKET NO. BD 630335-OM
                                   PETITIONER
          -----------------------------------X

            ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW

          The above-named petitioner-tenants  timely  filed  Petitions  for
          Administrative Review against an order issued on November 5, 1988 
          by the Rent Administrator, 92-31 Union Hall Street, Jamaica, 
          New York, concerning housing accommodations known as 2415  Morris
          Avenue,  Bronx,  New  York,  various  apartments,   wherein   the
          Administrator  authorized  a  major  capital   improvement   rent
          increase for both the controlled and stabilized apartments in the 
          subject  premises  based   on   the   installation   of   a   new
          boiler/burner, intercom  system,  new  roof  and  front  entrance
          doors.   Said order was  issued  after  a  review  of  supporting
          documentation submitted by the owner  and  the  tenant  responses
          received thereto.

          In three separately filed  petitions  for  administrative  review
          (consolidated  herein  for  disposition)  the   tenants   request
          reversal of the Administrator's order and allege,  in  substance,
          that the work was not properly performed and  that  services  are
          not being maintained.

          After  a  careful  consideration  of  the  entire   record,   the
          Commissioner is of the opinion that  these  petitions  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 Commissioner notes that  the  petitioners  herein  raised  no
          objections to the quality or adequacy of the installations  while
          this proceeding was before the Rent Administrator  although  they






          CK 610055-RT
          were afforded the opportunity to do so.

          Accordingly, pursuant to prior administrative decisions under the 
          Rent and Eviction Regulations and pursuant to Section  2529.6  of
          the Rent Stabilization Code the tenants' allegations may  not  be
          considered now when offered for the first time on  administrative
          appeal.  The Commissioner further notes that the records  of  the
          Division disclose that no heat or hot water  complaint  or  other
          service complaints were pending nor were there any orders of rent 
          reduction of a building-wide nature in effect as of the  issuance
          date of the Administrator's order appealed herein.

          The record in the instant case,  which  includes  copies  various
          proposals,  invoices,  contractors'   certifications,   cancelled
          checks  and  governmental  approvals  and   sign-offs   for   the
          installation and operation of the heating system, indicates  that
          the owner correctly complied with the applicable procedures for a 
          major  capital  improvement;  and  that  the  Rent  Administrator
          correctly computed the appropriate rent increases  based  on  the
          proven cost of the various improvements.  The  tenants  have  not
          established that the increase should be revoked.

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

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

          ISSUED:

           
                                                       JOSEPH A. D'AGOSTA
                                                       Deputy Commissioner
    

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