Adm. Rev. Docket Number: DG 210289-RT
                                 STATE OF NEW YORK
                           OFFICE OF RENT ADMINISTRATION
                                    GERTZ PLAZA
                              92-31 UNION HALL STREET
                              JAMAICA, NEW YORK 11433

        APPEAL OF                              DOCKET NO.: DG 210289 RT  
             BENJAMIN SMITH,                   DRO DOCKET NO.: CL 230218-OM 
                              PETITIONER    :  Premises: 9111 CHURCH AVE.
        ------------------------------------X  APT. 5J, B'KLYN, NY      

        The above-named tenant 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
        issue raised by the petition.

        The owner commenced this proceeding by filing an application  for  a
        rent increase based on a  major  capital  improvements,  to  wit-new
        Each tenant was served with a copy of the  owner's  application  and
        was afforded an opportunity to  review  it  and  comment  thereupon.
        The petitioner-tenant did not  file  an  objection  to  the  owner's
        application although afforded the opportunity to do so.  The  record
        discloses that various other tenants filed objections to the owner's 

        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
        documentation submitted by the owner, and allowing appropriate  rent

        In its petition for administrative review,  the  tenant  requests  a
        reversal of the Rent Administrator's order  and  contends  that  the
        cost of the installation should not be paid by the tenants,  service
        has decreased and  violations  have  increased,  and  the  owner  is
        granted an increase while a rent overcharge  determination  had  not
        been paid back.

        The owner interposed an  answer  to  the  tenant's  petition,  which
        stated it had complied with all requirements to be eligible for rent 

        After careful consideration the Commissioner is of the opinion  that
        this petition should be denied.

        Rent increases for major  capital  improvements  are  authorized  by

        Adm. Rev. Docket Number: DG 210289-RT
        Section 2202.4  of  the  Rent  and  Eviction  Regulations  for  rent
        controlled apartments and Section 2522.4 of the  Rent  Stabilization
        law 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, preservation, 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 tenant's reference to a rent overcharge determination  had  been
        stayed by the filing  of  a  petition  from  the  owner,  which  was
        determined subsequent to the instant appeal.

        The Commissioner will not  entertain  the  tenant's  unsubstantiated
        defense of decreased services raised for the first time  on  appeal,
        even though it was afforded an  opportunity  to  file  an  objection
        before the Administrator.  The record in the instant case  indicates
        that the owner correctly complied with application procedures for  a
        major  capital  improvement  and  the  Rent  Administrator  properly
        computed  the  appropriate  rent  increases.   The  tenant  has  not
        established that the increase should be revoked.

        This order is issued without prejudice to the tenants right to  file
        an application  for  decrease  in  services,  should  the  facts  so

        THEREFORE, in accordance with the Rent Stabilization Law  Code,  and
        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,


                                        ELLIOT SANDER
                                        Deputy Commissioner

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