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

          -------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
                    CHESTER GARBACZ 
                                                   RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  BC210351OM



          On April 23, 1990, the above-named petitioner-owner timely filed a 
          petition for administrative review (PAR) against an order issued on 
          March 28, 1990, by a Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, NY, concerning the housing accommodations known as 227/229 
          Kingsland Avenue, Brooklyn, NY, Various apartments.  

          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 the petition for administrative review.

          The owner commenced this proceeding on March 16, 1987 by initially 
          filing a major capital improvement (MCI) rent increase application 
          based on the installation of the following:  

               Item                                    Claimed Cost
          (1)  Boiler                                  $14,300.00
          (2)  Apartment doors                         $ 6,800.00
          (3)  Rewiring                                $11,000.00
          (4)  Intercom system                         $ 1,540.00
          (5)  Smoke detectors                         $   540.00
          (6)  Re-piping                               $10,000.00
          (7)  Bathroom /Kitchen Fixtures              $ 6,241.41
          (8)  Sidewalk                                $   936.96
          (9)  Paint Cornices                          $ 2,500.00
          (10) Roof                                    $ 3,000.00
          (11) Replacement windows                     $ 9,000.00
               For a total claimed cost of             $65,858.37


On March 28, 1990, the Rent Administrator issued the order here 
under review finding that only the new roof, the re-piping, the 
boiler and the apartment doors qualified as MCIs.  Also only part 
of the cost for the boiler and apartment doors were allowed.  The 

          Rent Administrator determined that the items recognized in the 
          order as qualifying complied with the relevant laws and regulations 
          based upon the supporting documentation submitted by the owner, and 
          authorized rent increases for rent controlled and rent stabilized 
          apartments the expiration date for the latter being November 1, 

In this petition, the owner contends, in substance, that the Rent 
Administrator erred in its determination of the effective date of 
the MCI for rent stabilized apartments.

After careful consideration of the entire record, the Commissioner 
is of the opinion that this petition should be granted in part.

Rent increases for major capital improvements 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, a 
major capital improvement 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.

At the time the instant application was initially filed, the normal 
effective date of a rent increase for rent stabilized apartments is 
the first rent payment date at least 30 days after the owner 
completes its filing of the application by the filing with the 
Division of a Certificate of Service of same upon the tenants.

The evidence of the record in the instant case indicates that the 
owner certified, that he had completed service of notice of the MCI 
application on the tenants on September 25, 1987.  However, the 
owner did not file said completed certification with the Division 
until September 19, 1989.  No satisfactory explanation is given by 
the owner for this delay.

As of October 3, 1988 no responses from the tenants were received 
by the Division, whereupon the Division served notice to the 
tenants of the MCI application.

Following the notice by the Division the tenants responded stating, 
in substance, that the Division's notice was the first notice that 
was received.

The Commissioner finds that the owner has failed to substantiate 
that service was completed in September of 1987.  The record shows 
that the filing processing was completed on October 3, 1988 by the 


          ADMIN. REVIEW DOCKET NO. ED-230248-RO

          In light of the foregoing, the Commissioner is of the opinion and 
          finds that the effective date of the rent increase for stabilized 
          apartments should be December 1, 1988 (the first rent payment date 
          at least 30 days after notice to the tenants was completed by the 
          Division), rather than November 1, 1989.

          The tenants may pay any arrears in rent arising as a result of this 
          order and opinion in twelve equal monthly installments, subject to 
          the 6% maximum on collectibility of the temporary retroactive 

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

          ORDERED, that this petition be, and the same hereby is granted in 
          part; and that the Administrator's order be, and the same hereby is 
          modified, to revise the effective date of the increase for rent- 
          stabilized tenants as provided herein above.  The order and 
          determination of the Division is hereby affirmed in all other 


                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner



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