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

          -------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
                    WOOD GOLD REALTY CORP
                                                   RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  BJ130012OM



          On May 23, 1990 the above-named petitioner-owner timely filed a 
          petition for administrative review (PAR) of an order issued on 
          April 24, 1990, by a Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, NY concerning the housing accommodations known as 60-06 
          43rd Avenue, Woodside, 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 October 9, 1987 by initially 
          filing a major capital improvement rent increase (MCI) application 
          predicated on the installation of a new roof at a total cost of 

          The order of the Rent Administrator denied the owner's application 
          upon a finding, that the roof resurfacing was two layers and not 
          three or more.

          In this petition, the owner contends, in substance, that the weight 
          and strength of the two ply roof installed is superior to that of 
          a three ply roof made of normal materials.  In support of his 
          petition, the owner submits a letter from the contractor attesting 
          to this claim.

          After careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that this petition should be 
          remanded to the Administrator for further consideration.

          ADMIN. REVIEW DOCKET NO. EE-130423-RO

          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.

          It was the policy of the DHCR that a roof cap sheet of the type 
          involved herein qualified as a new roof at the time the work in 
          question was performed.  While Policy Statement 91-2 imposes more 
          stringent standards, the Commissioner notes that said Policy 
          Statement is effective March 26, 1991, several years after the roof 
          work in question was performed. 

          In view of the foregoing, the Commissioner finds it appropriate to 
          remand this proceeding to the Administrator to allow the owner's 
          application to be completed, including calculations for any and all 
          allowable increases.

          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 remanded to 
          the Administrator for further consideration in accordance with this 
          order and opinion.  The order and determination of the Rent 
          Administrator remains in full force and effect until a new order is 
          issued on remand.


                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner


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