Docket No. DD 430165-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 REVIEW
          APPEAL OF                              DOCKET NO.: DD 430165-RT  
                                                
             MATTHEW GADDIS, et al.              DRO DOCKET NO.: BA 530036-OM 
                                                  
                                                 Premises: 134 Haven Avenue
                                PETITIONER        Various apts., New York, N.Y.
          -----------------------------------X                           
            
            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          The above-named tenants 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 petitioner indicated  that  he  was  acting  as  the  tenants'
          representative without obtaining written evidence of authorization 
          to file as such (2529.1)(b)(2).  The Commissioner notes  that  the
          instant petition will be treated  as  a  jointly  filed  petition,
          included are the parties who signed the petition.

          The owner commenced the proceeding below by filing an  application
          for a rent increase based on a major capital improvement,  o  wit-
          new boiler/burner.
           
          Each tenant was served with a copy of the owner's application  and
          was afforded an opportunity to review it  and  comment  thereupon.
                                                                            
          Various petitioner-tenants filed an answer to the owner's  applica
          tion contending that the improvement made  was  maintenance  of  a
          required service and not a capital improvement.

          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
          creases.

          In their petition for administrative review, the tenants  requests
          reversal of the Rent Administrator's order and  asserts  that  the
          boiler installation is necessary maintenance, that the boiler  has
          been known to malfunction, and that the date of installation is in 
          question.

          The owner interposed an answer to the  tenants'  petition  contend
          ing, that the petition was not filed timely, that  the  Administra
          tor was correct in issuing an order granting a rent increase, that 






          Docket No. DD 430165-RT

          the tenants' assertions  has  no  basis  for  reversal,  that  the
          boiler/burner replacement is recognized  within  the  schedule  of
          major capital improvements, that the plans for  the  boiler/burner
          installation were approved by various governmental agencies,  that
          the date of installation is not in question as  evidenced  by  the
          documents submitted below.

          After careful consideration the Commissioner  is  of  the  opinion
          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 Commissioner notes,  that  the  tenant's  timely  filed  their
          petition for administrative review, that  the  installation  of  a
          boiler/burner has been established to  qualify  as  an  MCI.   The
          owner  substantiated  such  installation  by  submitting  to   the
          Administrator in the proceeding below documentation in support  of
          its application, including copies of the  contracts,  contractor's
          certification, plans, governmental approvals  and  sign-offs,  and
          cancelled checks for the work herein.

          The Commissioner will not entertain the tenants'  assertion,  that
          the boiler malfunctions, which is being raised for the first  time
          on appeal.

          On the basis of the entire evidence of record, it  is  found  that
          the Administrator's order is correct and should be affirmed.

          This order is issued  without  prejudice  to  the  tenants  filing
          complaints with this Division of  decrease  in  services,  if  the
          facts so warrant.

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





          Docket No. DD 430165-RT



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

          ISSUED:




                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                                                    
           
    

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