OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA

                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
          Jerry & Bea Spathas
                                                  RENT ADMINISTRATOR'S
                               PETITIONERS        DOCKET NO: AH130092OM

          On April 11, 1988 the above-named petitioner-owners timely refiled 
          an administrative appeal against an order issued on January 7, 1988 
          by the Rent Administrator (92-31 Union Hall Street, Jamaica, New 
          York) concerning the housing accommodations known as 25-22 34th 
          Street, Long Island City, New York, various apartments, wherein the 
          Administrator granted major capital improvement (MCI) rent 
          increases for the controlled and stabilized apartments in the 
          subject premises based on the pointing and steam cleaning of the 
          premises. The Administrator disallowed expenditures for 
          waterproofing and stucco work performed on the building. 

          In this petition the owner contends that waterproofing and stucco 
          work was performed on the subject building, that documentation for 
          the work was provided, and that therefore, an MCI rent increase is 

          After careful consideration, the Commissioner is of the opinion 
          that this petition should be deemed.

          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 
          improvements 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.

          Section 2522.4(a)(2)(ii) of the Rent Stabilization Code and Section 
          2202.4(e) of the Rent and Eviction Regulations permit a rent 
          increase for other work performed in conjunction with a qualifying 
          major capital improvement. Section 2522.4(a)(2)(ii) of the Code and 
          Operational Bulletin 84-4 (November 13, 1984) limit the application 
          of "concurrent improvements" to costs incurred within a reasonable 
          period of time of a qualifying major capital improvement and only 
          if it directly relates thereto.

          The record in this case indicates that the waterproofing and stucco 
          work commenced on May 10, 1985 and was completed on May 30, 1985 
          and that the pointing commenced 16 months later on August 16, 1986 
          and was completed August 23, 1986. Since the waterproofing and 
          stucco work were not performed in conjunction with or within a 
          reasonable period of time from the qualifying MCI, i.e the 
          pointing, said work was properly disallowed by the Administrator.

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

          ORDERED, that this petition be, and the same hereby is, denied, and 
          that the order of the Rent Administrator be, and the same hereby 
          is, affirmed.


                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner


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