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.: DD610296RT
          APPEAL OF

            Juan R. Hernandez
                                                   RENT ADMINISTRATOR'S
                                  PETITIONER       DOCKET NO.: BA630102OM
          -----------------------------------X


             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          The petitioner-tenant timely filed an administrative appeal against 
          an order issued on April 14, 1989, by the Rent Administrator (92-31 
          Union Hall Street, Jamaica,  New  York)  concerning  the  housing
          accommodations known as 3508 Kings College Place, Bronx, New York, 
          apartment 2E, wherein the  Administrator  granted  major  capital
          improvement (MCI) rent increases for the controlled and stabilized 
          apartments in the subject premises based on the  installation  of
          apartment windows at the premises.

          The owner commenced this  proceeding  below  by  filing  its  MCI
          application in January of 1987. In support of its application, the 
          owner  submitted  copies  of  the  contract,   the   contractor's
          certification, and cancelled checks. 

          The  petitioner-tenant  filed  an  objection   to   the   owner's
          application, stating that the installation took place in 1986, not 
          during May to August 1985 as stated in the owner's application; a 
          overcharge application had been filed with the agency; and inquired 
          as to whether it would be necessary to pay the owner this increase 
          indefinitely.

          On appeal, the petitioner-tenant states, in substance, that  only
          one window in his bedroom was replaced, and therefore, he  should
          not be responsible for the entire rent increase.

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



          ADMINISTRATIVE REVIEW DOCKET NO.: DD610296RT













          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 apartment windows, as in  the  instant  case,
          qualifies as an MCI.

          The evidence of record in the instant case indicates that the owner 
          fully substantiated its application and correctly complied with the 
          application procedures for an MCI, and that the Rent Administrator 
          properly computed the appropriate rent increase. On the other hand, 
          the tenant has not submitted  any  evidence  to  prove  that  the
          increase should be revoked. 

          The Commissioner notes that  the  tenant  did  not  raised  these
          objections while this proceeding  was  pending  before  the  Rent
          Administrator even though he was afforded the opportunity to do so.

          Fundamental principles of the administrative appeal  process  and
          Section 2529.6 of the Rent Stabilization Code prohibit a party from 
          raising issues on appeal which  were  not  raised  below  as  the
          petitioner-tenant could have raised the very issues before the Rent 
          Administrator which he now seeks to raise for the first  time  on
          appeal. Accordingly, the Commissioner is constrained to foreclose 
          consideration of these issues in this proceeding.

          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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