OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          -------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
                    ANTONIO COLON                  RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  CL630214OM



          On September 27, 1989, the above named petitioner-tenant timely 
          filed a petition for administrative review (PAR) against an order 
          issued on September 19, 1989, by a Rent Administrator (Gertz Plaza) 
          concerning the housing accommodations known as 1801 University 
          Avenue, Apt. 5E, Bronx, New York, wherein the Rent Administrator 
          determined that the owner was entitled to a rent increase based on 
          the installation of a major capital improvement (MCI).

          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 this administrative appeal.

          The owner commenced this proceeding on December 9, 1988, by filing 
          an application for a rent increase based on the installation of the 
          following MCIs at a total cost of $27,594.23:  new boiler/burner 
          and new mailboxes.

          The tenant did not submit an objection to the owner's MCI 
          application although afforded the opportunity to do so.

          On September 19, 1989, the Rent Administrator issued the order here 
          under review finding that the installation of the new boiler/burner 
          qualified as an MCI, determining that the application pertaining to 
          said installation complied with the relevant laws and regulations 
          based upon the supporting documentation submitted by the owner, and 
          allowing rent increases for rent controlled and rent stabilized 
          tenants.  Disallowed by the Administrator was the cost of the new 
          mailboxes based upon a finding that said installation did not 
          qualify as an MCI, resulting in the total approved cost of 

          In this petition, the tenant contends, in substance, that the 
          increase should be reversed because the heat and hot water supplied 
          to the tenants was inadequate last year (1988); and that the tenant 
          personally filed a complaint with the Central Complaint Bureau 
          concerning said problem.

          ADMIN. REVIEW DOCKET NO. DI-610224-RT

          In response to the tenant's petition, the owner contends, in 
          substance, that the new boiler/burner is providing adequate heat 
          and hot water; that the tenant never reported said complaint to the 
          owner; that no other tenants have made such  complaints; that it is 
          perfectly willing to inspect the apartment and effectuate the 
          necessary repairs if access is provided at the appropriate time; 
          and that adequate services have been provided even in crisis and 
          shall continue to be provided given the opportunity to do so.

          After careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that this petition 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.  It is the long-standing policy of 
          the Division that the installation of a new boiler/burner 
          constitutes a major capital improvement entitling the owner to an 
          appropriate rent increase.

          The evidence of record indicates that notice was sent to all 
          tenants by DHCR yet no responses were received in the proceeding 
          below.  Pursuant to Section 2529.6 of the Rent Stabilization Code, 
          the issues raised herein are not within the scope of the 
          Commissioner's review as they have been raised for the first time 
          on appeal.

          Furthermore, the MCI herein was installed to alleviate the very 
          complaint that the tenant has alleged and,  by the tenant's own 
          admission, the heat and hot water problem was a past experience.

          This order and opinion is issued without prejudice to the right of 
          the tenant to file a complaint of service decrease with the 
          Division, if the facts so warrant.

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

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


                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner



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