DOCKET NO:  CG 710049-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 APPEAL
     APPEAL OF                              DOCKET NO. CG 710049-RT
                                          : DRO DOCKET NOS. HAL-7-1-0112/0191-OM
               ROBERT FAGAN,                                HCA-7-1-0003-RP
                                          :   
                            PETITIONER         
     -------------------------------------X   

          
           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On July 18, 1988, the above-named tenant timely filed a petition for 
     administrative review of an order issued on July 5, 1988 (amended July 29, 
     1988 to correct typographical error  not germane to this petition) 
     concerning various housing accommodations including this tenant's unit:  
     Apt. 7A at 7A Elk Ct., Hempstead, NY, wherein a Major Capital Improvement 
     increase was granted for the owner's installation of a new boiler and 
     burner in boiler room #2 in 1986.  Said boiler services 80 apartments in 
     the complex, including the apartment of the petitioner-tenant.

     At the District Rent Administrator level various tenant's complained, that 
     the new boiler installation replaced a five year old installation, and 
     that therefore the boiler had not expended its useful life.

     The Acting District Rent Administrator based on the evidence in the record 
     determined that the installation of two new burners in boiler room #2 
     constituted a major capital improvement for which a rent increase is 
     mandated by both statutes and regulations.

     Although the burners replaced were only five years old, the new burners 
     were more efficient in that they burn #2 oil instead of #6 oil.  the 
     owner's application was granted due to the new burners using a more 
     efficient and lower sulfur fuel; consistent with the states energy 
     conservation policy.

     After careful consideration, the Commissioner is of the opinion that the 
     tenant's petition should be denied.

     As the tenant raises the issue of the alleged uninsulated underground 
     boiler room to building complex pipe for the first time upon 
     administrative review, and the tenant does not explain why he did not 
     raise the issue in his January 1, 1991 answer to the owner's application 
     in the proceeding before the District Rent Administrator, this issue is 
     outside the scope of the Commissioner's review in this proceeding.

     The Commissioner further notes that the useful life standard is flexible 
     enough to allow replacement of equipment of fairly recent vintage, with 
     equipment that pollutes less, in accordance with the state's energy 
     conservation guidelines.  In the subject installation the replacement of 
     #2 oil burning burners and boilers for the existing #6 oil burning 







          DOCKET NO:  CG 710049-RT

     equipment was properly held by the District Rent Administrator to be less 
     polluting and more efficient use of fossil fuels.

     Accordingly, the Commissioner finds that the Administrator's order should 
     be affirmed.

     THEREFORE, in accordance with the ETPA and Tenant Protection Regulations, 
     it is

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

     ISSUED:


                                                                               
                                                  JOSEPH A. D'AGOSTA
                                              Acting Deputy Commissioner 


     Note:  This order doesn't bar the tenant from filing a reduction of 
     services complaint, regarding heat and hot water services of the building 
     due to the alleged deficient insulation of underground boiler pipes.
    

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