DA 120154 RT
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO.: DA 120154-RT   
            OTTO RICHARD HADLER,                 DRO DOCKET NO.: BD 110502-OM 
                                                 Premises: 31-88 35 Street
                                                  Apt. 5D, Astoria, N.Y.        

          The above-named tenant timely filed a Petition for  Administrative
          Review of an order issued concerning  the  housing  accommodations
          relating to the above described docket number.        

          The Commissioner has reviewed all of the evidence  in  the  record
          and has carefully considered that portion of the  record  relevant
          to the issues raised by the petition.

          The owner commenced the proceeding below by filing an  application
          for a rent increase based on a major capital improvement,  o  wit-
          Each tenant was served with a copy of the owner's application  and
          was afforded an opportunity to review it  and  comment  thereupon.
          The tenant interposed a response to the owner's application  which
          stated, the tenant's personal expenses,  his  income,  and  listed
          various rent increases.

          Thereafter, the Rent Administrator issued  the  order  here  under
          review finding that the installation qualified as a major  capital
          improvement, determining that the application  complied  with  the
          relevant laws and regulations based upon the supporting  documenta
          tion submitted by the owner,  and  allowing  appropriate  rent  in

          In its petition for administrative  review,  the  tenant  requests
          review  of  the  Rent  Administrator's  order  and  lists  various
          assertions, irrelevant to the Administrator's order,  inter  alia,
          there had been burglaries and thefts during the  past  twenty  two
          years, had never met the owner, his income may not allow a  higher

          The owner interposed an answer to the  tenant's  petition  contend
          ing, that the tenant's objections  to  the  Administrator's  order
          have no legal or factual foundation,  that  the  tenant  does  not
          challenge the cost or installation of the windows,  and  that  the
          Administrator's order should be sustained.

          After careful consideration the Commissioner  is  of  the  opinion

          DA 120154 RT

          that this petition 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,  preserva
          tion, 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 petitioner has failed to point to any error in fact or law  in
          the Administrator's order.

          In regard to the tenant assertion that his income may not allow  a
          higher rent, the tenant is advised to contact the  New  York  City
          Department of Housing, Preservation and Development and apply  for
          the senior citizen rent increase exemption.

          Pursuant to Chapter 737 of the Laws of 1986,  effective  September
          1,  1986,  a  tenant  of  a  rent-controlled  or   rent-stabilized
          apartment in New York City who qualifies for a Senior Citizen Rent 
          Increase Exemption Order will  be  exempt  from  a  rent  increase
          attributable to the installation of a  major  capital  improvement
          granted since the tenant's "Eligibility" date to the  extent  such
          rent increases causes the tenant's rent to exceed mo e  than  one-
          third of the tenant's monthly disposable household income.

          The record in the instant case indicates that the owner  correctly
          complied with applicable procedures for a  major  capital  improve
          ment and the Rent Administrator properly computed the  appropriate
          rent increases.  The tenant has not established that the  increase
          should be revoked.

          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          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 Rent Administrator's order be, and the  same  hereby  is,


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner

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