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 430200-RT
                                         :  
                                            RENT ADMINISTRATOR'S
         JAMES PETERS,                      DOCKET NO.: BD 430326-OM
                           PETITIONER    : 
     ------------------------------------X                             

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On  April  26,   1989   the   above-named   petitioner-tenant   filed   an
     Administrative Appeal against an order issued on April  11,  1989  by  the
     Rent Administrator, 92-31 Union Hall Street, Jamaica, New York  concerning
     the housing accommodations known as 241 West 13th Street,  New  York,  New
     York, Apartment  15,  wherein  the  Administrator  granted  major  capital
     improvement  (MCI)  rent  increases  for  the  controlled  and  stabilized
     apartments in the subject premises based on the installation of  a  boiler
     at the premises.  The subject accommodations is rent stabilized.

     The landlord commenced the proceeding below by filing its MCI  application
     in April 1987.  The order of the Administrator  appealed  herein  contains
     the notation that various tenants complained that the boiler was  replaced
     by the former owner.

     On appeal, the petitioner-tenant requests a reversal of the MCI order  and
     states, in substance, that the boiler was installed seven years ago by the 
     prior owner; that a used boiler was installed; and that adequate heat  has
     not been received.

     After  careful  consideration  of  the  entire  evidence  of  record   the
     Commissioner is of the opinion that the Administrative  appeal  should  be
     denied.  

     Rent increases for major capital improvements are  authorized  by  Section
     2522.4 of the Rent Stabilization  Code  for  rent  stabilized  apartments.
     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.

     With respect to the tenant's contentions, the record discloses that at the 
     time of filing the MCI application, there was no time limitation in  which
     to file  such  application.   Neither  is  a  present  owner  barred  from
     collecting a rent increase for an installation put in  place  under  prior
     ownership  where  an  appropriate  rental   adjustment   based   on   such
     installation has not previously been granted.  The  record  further  shows
     that the owner substantiated its application in the proceeding below by 








          DOCKET NUMBER: DD 430200-RT
     submitting  to  the   Administrator   copies   of   contracts,   invoices,
     contractor's  certification,   cancelled   checks,   and   the   necessary
     governmental approvals and sign-offs for the work in  question  while  the
     petitioner-tenant did not submit any documentary evidence  in  support  of
     its allegation that it was a used boiler.

     The Commissioner notes that the petitioner herein raised no  objection  to
     the quality or adequacy of the boiler while this proceeding was before the 
     Rent Administrator although afforded  the  opportunity  to  do  so.   Such
     matters may not be considered for the first time  on  appeal  under  these
     circumstances.

     This determination is without prejudice to the right of the tenant  filing
     an appropriate complaint with the  Division  alleging  the  owner  is  not
     maintaining all required services, if the facts so warrant.

     THEREFORE, in accordance  with  the  applicable  provisions  of  the  Rent
     Stabilization Law and Code, and Operational Bulletin 84-1, it is

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

     ISSUED:










                                                                   
                                          JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner




                                                   
    

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