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.:  EF430022RO
          APPEAL OF
                    JUNO ASSOCIATES                RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  CI430245OM

                                   PETITIONER
          -------------------------------------X

          ORDER AND OPINION GRANTING, IN PART, PETITION FOR ADMINISTRATIVE 
          REVIEW AND REMANDING PROCEEDING TO THE RENT ADMINISTRATOR

          On June 11, 1990 the above named petitioner-owner timely filed a 
          petition for administrative review (PAR) against an order issued on 
          May 7, 1990, by a Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          167 Avenue A, New York, New York, various apartments, wherein the 
          MCI application was denied.

          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 this Petition for Administrative Review.

          The owner commenced this proceeding on September 30, 1988 by 
          initially filing a major capital improvement rent increase 
          application based on the following installations:

          (1)  Roof                          $20,126.63
          (2)  Intercom                      $   570.00
          (3)  Staircase                     $31,490.00
          (4)  Hallway                       $19,490.00
          (5)  Hot water heater              $ 3,629.35
          (6)  Lobby                         $ 2,050.00
               For a total claimed cost of   $77,355.98       

          On February 11, 1989, the Division of Housing and Community Renewal 
          (DHCR) served each tenant with notice of the MCI application and 
          afforded the tenants the opportunity to review the application and 
          comment thereon.

          In response thereto the tenants alleged, in substance, that the 
          roof repair was shoddy and continued to leak, the intercom did not 
          need replacement, the hallways were only cosmetically repaired, the 
          new hot water heater was not as efficient as the replaced one, and 
          the stairs were only replaced because they were in violation of 
          fire and safety codes.
ADMIN. REVIEW DOCKET NO. EF-430022-RO

On May 7, 1990, the Rent Administrator issued the order here under 
review, finding that the roof, the intercom and, the hot water 
heater installations all qualified as major capital improvements, 
determining that the part of the application pertaining to said 






          installations complied with the relevant laws and regulations based 
          upon the supporting documentation submitted by the owner, and 
          authorizing rent increases for rent controlled and rent stabilized 
          apartments.  The Administrator also determined that the staircase, 
          the hallway and the lobby work did not meet the criteria of an MCI.

          In this petition for administrative review, the owner request 
          modification of the Rent Administrator's order and alleges, in 
          substance, that full replacement of a staircase from first floor to 
          the roof meets all of the requirements of an MCI; that the hallway 
          and lobby work are also MCIs or, in the alternative, work done in 
          conjunction with qualifying MCIs, the stairs and the intercom; and 
          that a rent increase should be given for the stairs, hallway and 
          lobby.

          After careful consideration, the Commissioner is of the opinion 
          that this petition should be granted in part and that this 
          proceeding should be remanded to the Rent Administrator for further 
          consideration. 

          Rent increases for major capital improvements 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.

          Based upon the evidence in record, the Commissioner finds that the 
          replacement of an entire staircase, from ground floor to roof does 
          qualify as an MCI.  

          The record is unclear, however, as to the question of whether the 
          hallway and/or lobby are to be considered work performed in 
          conjunction with the qualifying staircase and intercom 
          replacements.  This issue is to be remanded to the Administrator 
          for further consideration and is deemed appropriate to ascertain 
          the amount of the rent increase to which the owner is entitled.

          THEREFORE, in accordance with the provisions of the Rent 
          Stabilization Law and Code, it is

          ORDERED, that this petition be, and the same hereby is granted, in 
          part, and that the proceeding be, and the same hereby is, remanded 
          to the Rent Administrator for further processing 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.

          ISSUED:

                                                       ____________________
                                                         Joseph A. D'Agosta
                                          2            Deputy Commissioner
    

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