CK 610169-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 610169-RT
                                                           CK 630366-RT
               Tina Hughes, President,                
               2829 Sedgwick Avenue
               Tenants' Association            DISTRICT RENT 
                      and                      ADMINISTRATOR'S
               Maxine Thomas,                  DOCKET NO. BA 610044-OM
                                  PETITIONERS
          -----------------------------------X

            ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW

          The  above-named  petitioner-tenants  filed  and  timely  refiled
          Petitions for Administrative Review against an  order  issued  on
          October 21, 1988 by the  Rent  Administrator,  92-31  Union  Hall
          Street, Jamaica,  New  York,  concerning  housing  accommodations
          known  as  2829  Sedgwick  Avenue,  Bronx,  New   York,   various
          apartments, wherein the Administrator authorized a major  capital
          improvement rent increase based on the installation in 1985 of  a
          new oil burner and main entrance door.  Said order  contains  the
          notation that  by  letter  dated  March  31,  1987  the  Tenants'
          Association requested an extension  to  respond  to  the  owner's
          application but  no  further  response  was  received;  and  that
          subsequent inquiries sent to various tenants brought no response.

          In two  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,
          including adequate heat and hot water, 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 2522.4  of  the  Rent  Stabilization  Code.   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 or the 
          maintenance of services while this proceeding was before the Rent 
          Administrator, although they were afforded the opportunity to  do
          so.

          Accordingly, pursuant to Section 2529.6 of the Rent Stabilization 
          Code the tenants' allegations may  not  be  considered  now  when






          CK 610169-RT
          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 new oil burner, indicates  that
          the owner correctly complied with the applicable procedures for a 
          major capital  improvement  rent  increase;  and  that  the  Rent
          Administrator correctly computed the  appropriate  rent  increase
          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, 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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