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

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
                  ALCAP ASSETS INC.,
                  C/O ED TRISTRAM ASSOCIATES
                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO:  AG630099OM


          The above named petitioner-owner timely filed on March 29, 1988 a 
          petition for administrative review (PAR) against an order issued on 
          March 3, 1988 by the Rent Administrator (Gertz plaza) concerning 
          the housing accommodations known as 2690 University Avenue, Bronx, 
          New York, various apartments, wherein the Administrator denied the 
          owner's application for major capital improvement (MCI) rent 
          increases for controlled and stabilized apartments at the subject 

          The owner commenced this proceeding on August 8, 1986 by initially 
          filing an application for an MCI rent increase predicated on the 
          installation of a new boiler/burner at a total cost of $43,000.00. 
          Said application was denied by the Administrator on grounds that 
          requisite permits and approvals for the installation had not been 

          In this petition for administrative review, the owner request 
          reversal of the Administrator's order and contends, in substance
          that the owner did the work as described in the MCI application; 
          that the tenants have the benefit of same; that the owner made 
          timely application for the increase and did all within its power to 
          respond to all Division requests; that the Certificate of 
          Electrical Inspection from the New York City Department of 
          Buildings, Bureau of Electrical Control, was not issued until 
          February 25, 1988; and that this final approval document is now 
          being supplied.  Submitted with the petition, are copies of the 
          Certificate of Approval for Oil Burning Installation issued on 
          January 23, 1987 (previously submitted) and the Certificate of 
          Electrical Inspection Issued on February 25, 1988.

          In response to the owner's petition, three tenants filed answers 
          contending, in substance, that the proceeding should be terminated 
          since the owner did not provide necessary permits and approvals 
          (Apt 2L); that the proper maintenance of the old boiler would have  


          preclude the necessity of a new boiler; and that the owner's letter 
          of October 28, 1985 stated that it would derive tax benefits under 
          the J-51 program without the need of rent increase (Apt 3A); and 
          that there are various repairs that need to be done in the 
          apartment (Apt 3E).

          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that this petition should be 
          granted, in part. 

          With respect to the contentions of the tenant in Apt 3A, the record 
          discloses that the owner certified in its MCI application that the 
          old boiler was approximately 50 years old; that the tenant does not 
          refute that the old boiler exhausted its useful life; and that the  
          owner was granted a tax abatement from the J-51 tax incentive 
          program for the improvement.  However only the rent controlled 
          tenants are entitled to any tax abatement offset since the 
          installation commenced subsequent to June 28, 1988. 
          As to the allegations of the tenant in apt 3E regarding lack of 
          repairs, the Commissioner notes that such allegation, is best 
          evidenced by a finding by the Division that the owner is not 
          maintaining such services.  A review of Division records discloses 
          that this tenant has not filed any service complaints either prior 
          to or subsequent to the issuance of the order appealed herein.  
          Neither are there any rent reduction orders based on the owner's 
          failure to maintain services of a building-wide nature outstanding 
          nor have any heat/hot water complaints been filed by the tenants 
          either prior to subsequent to the issuance of the order appealed 
          herein.  This determination is without prejudice to the right of 
          the tenant filing a service complaint with the Division, if the 
          facts so warrant.

          The record discloses that with the exception of Certificate of 
          Electrical Inspection all necessary governmental approvals and 
          sign-offs plus supporting documentation (contract, contractor's 
          certification and cancelled checks) had been submitted during the 
          course of the  proceeding, for the boiler/burner installation.  In 
          addition, the tenants do not take issue with the quality or 
          effectiveness of said new heating system, which installation 
          satisfies the requirements of a major capital improvements.

          In view of the fact that the owner has completed the application by 
          virtue of submitting the missing Certificate of Electrical 
          Inspection from the Bureau of Electrical Control and taking into 
          consideration all factors bearing on the equities of this 
          particular matter, the Commissioner is of the opinion and finds 
          that the owner is entitled to a rent increase adjustment of $2.63 
          per room, per month computed as follows: $43,000.00 less commercial

          ADMINN.  REVIEW DOCKET NO.:  CC630435RO

          tenants' share $11,932.50=$31,067.50 divided by 60 months=$517.79 
          divided by 197 rooms=$2.63.  The approved increase of $2.63 per 
          room, per month is decreased by $0.76 per room, per month for rent 
          controlled tenants to reflect the tax abatement offset.  Said 
          decrease will be in effect for the life of the tax abatement.  Upon 
          expiration of the tax benefits, owner shall be entitled to restore 
          the rent to the full amount of the MCI increase.  Said increase is 
          effective for rent stabilized apartments as of May 1, 1988, subject 
          to attached conditions, the first rent payment date 30 days after 
          the owner completed the instant application by virtue of the 
          submission to the Division of the requisite Certificate of 
          Electrical Inspection and effective for rent controlled apartments 
          as of the first rent payment day following issuance of this order 
          and opinion.
          The rent stabilized tenants may pay any arrears in rent resulting 
          form this order to cover the period between the effective date of 
          the rent increase (May 1, 1988) provided for herein and the date of 
          issuance of this order of the Commissioner in twenty four equal 
          monthly installments subject to the statutory limitation on 
          collectibility of 6% of the July 1986 rent for the permanent 
          increase plus 6% for temporary arrears.

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

          ORDERED, that this petition be, and the same hereby is granted in 
          part; that the order of the Rent Administrator be, and the same 
          hereby is revoked; and that the rents of the stabilized and 
          controlled apartments, be, and the same hereby are, increased in 
          the manner and effective as hereinabove provided, subject to the 
          attached conditions made part of this order.   


                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner



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