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.: DB110100RT
          APPEAL OF

             Joseph J. Amon   
                                                   RENT ADMINISTRATOR'S
                                  PETITIONER       DOCKET NO.: AE110163OM
          -----------------------------------X


             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          The petitioner-tenant timely filed an administrative appeal against 
          an order issued on January 12, 1989, by the Rent Administrator 
          (92-31 Union Hall Street, Jamaica, New York) concerning the housing 
          accommodations known as 120-16 18th Avenue,  College  Point,  New
          York, apartment 3R, wherein the Administrator granted major capital 
          improvement (MCI) rent increases for the stabilized apartments in 
          the subject premises based on the installation of a boiler/burner.

          On appeal, the petitioner-tenant states, in substance,  that  the
          boiler was replaced before he moved into the building; and his rent 
          is excessive. 

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

          Rent increases for MCIs 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 established position of the Division  that
          the installation of a boiler and burner, as in the instant  case,
          qualifies as an MCI.




          ADMINISTRATIVE REVIEW DOCKET NO.: DB110100RT














          Regarding the tenant's contention that he took occupancy after the 
          installation was completed,  the  Commissioner  notes  that  such
          contention is not sufficient to obviate the tenant's obligation to 
          pay rent increases duly approved by the Division. For the MCI rent 
          increase to be collectable during the term of a lease in effect at 
          the time of the issuance of the order, such lease must contain  a
          provision authorizing the collection of the increase pursuant to a 
          DHCR order, and if such lease is a vacancy lease, the lease  must
          contain a specific clause informing the tenant that: 1)  such  an
          application is pending; 2) the docket number of such application; 
          3)  the  increase  requested;  and  4)  a  description   of   the
          installation. In the absence of such  specific  provisions  in  a
          vacancy lease the rent increase would not be collectible until the 
          expiration  of  the  lease  term  in  effect  at  the  time   the
          Administrator's order is issued and then only  on  a  prospective
          basis. The owner's violation of this provision could result in  a
          rent overcharge determination.

          With regard to the tenant's claim that  his  rent  is  excessive,
          according to Division records, the  tenant  filed  an  overcharge
          complaint on July 17, 1989 under Docket Number DG110133R which was 
          granted on March 20, 1992,  and  that  the  tenant  vacated  said
          apartment.

          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, 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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