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   ADMINISTRATIVE REVIEW
          IN THE MATTER OF THE ADMINISTRATIVE      DOCKET NO.:  DJ130184RO
          APPEAL OF
                    DEMETRIOS C. PAPPAS
                                                   RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  DH130054OM

                               PETITIONER
          -------------------------------------X

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          On October 11, 1989 the above-named petitioner-owner timely filed 
          an administrative appeal against an order issued on September 19, 
          1989 by the Rent Administrator (92-31 Union Hall Street, Jamaica, 
          NY) concerning the housing accommodations known as 32-16 Crescent 
          Street, Queens, NY, various apartments, wherein the Administrator 
          denied major capital improvement (MCI) rent increases for the 
          controlled and stabilized apartments in the subject premises based 
          on the installation of a steel fence.

          The Rent Administrator's order, appealed herein, stated that said 
          installation does not constitute an MCI but is considered as 
          repairs and maintenance.

          On appeal, the petitioner-owner states, in substance, that the 
          installation of an iron fence around the building clearly satisfies 
          the criteria of 2522.4(2)(i) in that it is "depreciable"; it is for 
          the preservation and maintenance of the structure in that it keeps 
          out trespassers; it is an improvement to the building, 
          aesthetically and practically; it benefits all the tenants, and the 
          fence is of substantial quality consisting of wrought iron and 
          should not be considered merely a repair. 

          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that this administrative appeal 
          should be denied.




















          ADMIN. REVIEW DOCKET NO. DJ130184RO

          Rent increase for MCIs 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 an MCI 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.

          It has been the long established position of the Division that the 
          replacement of a steel fence does not qualify as an MCI, but is 
          considered as normal repairs or maintenance. 

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

          THEREFORE, in accordance with the applicable provisions of the Rent 
          Stabilization Law and Code, the Rent and Eviction Regulations for 
          the City of New York, and Operational Bulletin 84-1, it is

          ORDERED, that this 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
                                                        Deputy Commissioner

















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