DI 610134 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.: DI 610134 RT  
                                                
            FRANCISCO SANCHEZ,                   DRO DOCKET NO.: BD 610495-OM 
                                                  
                                                 Premises: 2229 Valentine Avenue
                                                  Apt. 3G, Bronx, New York
                                 PETITIONER  
          -----------------------------------X                           
            
            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          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 various major  capital  improvements,
          to wit-boiler/burner, windows,  compactor,  lobby  door,  elevator
          upgrade.
           
          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.

          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 his petition for administrative  review,  the  tenant  requests
          review of the Rent Administrator's order  and  alleges,  that  the
          owner only installed a new motor in the boiler room, that there is 
          a problem with the hot water, and occasionally the  elevator  does
          not work.

          The owner interposed an answer to the tenant's petition contending 
          that there had not been any heat/hot water or elevator  complaints







          DI 610134 RT

          since the installation of the boiler/burner and  elevator  control
          board.

          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 will not entertain the tenant's assertions raised 
          for the first time on appeal.

          This order is issued without prejudice to  the  tenants  right  to
          file an application for a rent reduction based upon a decrease  in
          services, should 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

          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:




                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




                                                    
           
    

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