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.: DL630350RO
          APPEAL OF

                 Deegan Two Company
                 c/o Martin A. Shlufman           RENT ADMINISTRATOR'S
                                                  DOCKET NO.: DB630072OM
                               PETITIONER         
          ------------------------------------X


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          On December 21, 1989 the above-named petitioner-owner timely filed 
          an administrative appeal against an order issued on November 16, 
          1989 by the Rent Administrator (92-31 Union Hall Street, Jamaica, 
          New York) concerning the housing accommodations known as 2101 Cedar 
          Avenue, Bronx, New York, 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 new elevator hallway call 
          stations, new interlocks , new steel hoist cables and a new hoist 
          sheave.

          On appeal, the petitioner-owner states, in substance, that (A) the 
          installation of call stations on all floors, including the lobby 
          floor, constitutes an MCI; (B) a new hoist sheave was fabricated 
          and installed; (C) seven new interlocks, one for each floor, 
          including the lobby floor, were installed; (D) since the old cable 
          had worn out and was dangerous for use in the elevator, a new half 
          inch traction steel hoist cable was installed in the main machine; 
          and (E) even if this installation was not considered an MCI by 
          itself, it would, at the very least, constitute a cosmetic 
          improvement in connection and simultaneously with the other 
          installations which do constitute an MCI in accordance with Section 
          2522.4(a)(2)(ii) of the Code.

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

          It is the well established position of the Division that for a 
          partial elevator modernization (upgrading) to qualify as an MCI the 
          installation must include a new controller and selector, the 
          electronic brain of the elevator. The replacement of call stations, 
















          Admin. Review Docket No. DL630350RO

          hoist sheave, interlocks and half inch traction steel hoist cable, 
          as evidenced by two separate invoices, constitute repair items 
          which the Administrator properly found not to qualify as an MCI.
           
          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 the order of the Rent Administrator be, and the 
          same hereby is, affirmed.



          ISSUED:







                                                                            
                                                    JOSEPH A. D'AGOSTA
                                                    Deputy Commissioner