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   ADMINISTRATIVE REVIEW
          IN THE MATTER OF THE ADMINISTRATIVE      DOCKET NO.:  DC230368RO
          APPEAL OF
                    STEVEN FREY                    RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  CJ230174OM
                                   PETITIONER
          -------------------------------------X

          ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          On March 24, 1989, the above named petitioner-owner timely filed a 
          petition for administrative review (PAR) against an order issued on  
          February 13, 1989, by the Rent Administrator (92-31 Union Hall 
          Street, Jamaica, New York) concerning the housing accommodations 
          known as 2249 Ocean Avenue, Brooklyn, New York, various apartments. 

          The owner commenced this proceeding on October 26, 1988, by filing 
          an application for a rent increase based on the installation of a 
          computerized heat timer.

          On February 13, 1989, the Rent Administrator denied the application 
          and stated that the work performed did not constitute a major 
          capital improvement, but rather repairs and maintenance.

          On appeal, the petitioner-owner states, in substance, that A) the 
          previous system was old and outdated, causing a tremendous waste of 
          heating energy; B) energy conservation is greatly encouraged by the 
          city and state government agencies; C) this installation provides 
          a comfort of heat level for all the tenants.

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

          It is the established position of the Division that neither a heat 
          timer nor a computerized heat control (a more sophisticated heat 
          timer) constitutes a major capital improvement since neither is a 
          major component of the heating system.  However, Section 
          2522.4(a)(ii) of the Code and Section 2202.4(e) of the Rent and 
          Eviction Regulations(formerly Section 33.1e) permits a rent 
          increase for other work performed in conjunction with a qualifying 
          major capital improvement and the Division has allowed an increase 
          for a heat timer installed in conjunction with a new heating 
          system.  Section 2522.4(a)(ii) of the Code and Operational Bulletin 
          84-4 (November 13, 1984), limits 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.












          ADMIN. REVIEW DOCKET NO. DC-230368-RO

          Since the computerized heat control was not installed in 
          conjunction with or within a reasonable period of time from the 
          installation of a new heating system, said item was properly 
          disallowed by the Administrator.

          THEREFORE, in accordance with the provisions of the Rent 
          Stabilization Law and Code, the Rent and Eviction Regulations for 
          the City of New York, and Operational Bulletin 84-1, it is

          ORDERED, that this Administrative Appeal be, and the same hereby is 
          denied; and that the Rent Administrator's order be, and the same 
          hereby is affirmed.

          ISSUED:



                                                       ____________________
                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner































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