EA 210080 RT
                                  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 
          IN THE MATTER OF THE ADMINISTRATIVE    ADMINISTRATIVE REVIEW
          APPEAL  OF                               DOCKET  NO.:  EA   210080   RT
                                                     
            WALTER HECHT,                        DRO DOCKET NO.: BD 230349 OM 
                                                  
                                                 Premises: 8201 Bay Parkway
                                 PETITIONER       Apt. 6H, Brooklyn, N.Y.
          -----------------------------------X                           
            
            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          The above-named tenant filed a petition for administrative  review
          of an order issued concerning the housing accommodations  relating
          to the above described docket number.        

          The Commissioner has reviewed all of the evidence  in  the  record
          and has carefully considered that portion of the  record  relevant
          to the issue raised by the petition.

          The owner commenced the proceeding below by filing an  application
          for a rent increase based on a major capital improvements, to wit 


          Each tenant was served with a copy of the owner's application  and
          was afforded an opportunity to review it  and  comment  thereupon.
                                                                            
          The petitioner-tenant did not file an  objection  to  the  owner's
          application although afforded the opportunity to do so.

          Thereafter, the Rent Administrator issued  the  order  here  under
          review finding that the installation qualified as a major  capital
          improvement, determining that the application  complied  with  the
          relevant laws and regulations based upon the supporting  documenta
          tion submitted by the owner,  and  allowing  appropriate  rent  in
          creases.

          In its petition for administrative review, the tenant  requests  a
          review of the Rent Administrator's  order  and  alleges  that  the
          order was warranted and should be affirmed.

          After careful consideration the Commissioner  is  of  the  opinion
          that this petition should be denied.

          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,  preserva
          tion, 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;






          EA 210080 RT

          required for the operation, preservation, and maintenance  of  the
          structure; and replace an item whose useful life has expired.   

          The Commissioner will not entertain the  tenant's  unsubstantiated
          defense raised for the first time on appeal, even  though  it  was
          afforded an  opportunity  to  file  an  objection  before  the  Ad
          ministrator.  The record in the instant case  indicates  that  the
          owner correctly complied with applicable procedures  for  a  major
          capital improvement and the Rent Administrator  properly  computed
          the appropriate rent increases.  The tenant  has  not  established
          that the increase should be revoked.

          This order is issued without prejudice to  the  tenants  right  to
          file an application for decrease in services, should the facts  so
          warrant.

          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          and the Rent and Eviction Regulations for New York City, it is

          ORDERED, that this petition be, and the same hereby is, denied and 
          that the Rent Administrator's order be, and the  same  hereby  is,
          affirmed.

          ISSUED:




                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner