DOCKET NUMBERS: EB-130359-363 - 130421-RO
                                  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  :  S.J.R. 5483 
          APPEALS OF                           :  
                                               :  ADMINISTRATIVE REVIEW
                                               :  DOCKET NUMBERS: 
                                               :    EB-130359-RO, EB-130360-RO  
                                               :    EB-130361-RO, EB-130362-RO
                                               :    EB-130363-RO, EB-130404-RO
                                               :    EB-130405-RO, EC-130213-RO
                                               :    EC-130215-RO, EC-130420-RO
                                               :    EC-130421-RO 
               PAMENAR REALTY,                 :
                                               :      DISTRICT     RENT     ORDER
                                               :  DOCKET NUMBERS: 
                                               :    CC-130118, 130115,
                                               :    CC-110149, 110171,
                                               :    130117, 110151,
                                               :    130155, 130153,
                                               :    130164, 130170 and
                                               :    130169-OM 
                                               :
                                   PETITIONER  :  
          -------------------------------------X


          ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW


          On February 7 and March 8, 1990, the above-referenced owner  filed
          petitions for administrative review of orders issued on January 9, 
          16  and  18  and  February  26,  1990   concerning   the   housing
          accommodations known as 145-10 and 145-26 20th Avenue, 20-10, 
          20-14, 20-18 and 20-20 146th Street, 145-05 21st Avenue and 20-05, 
          20-11, 20-21 and  20-31  Parsons  Boulevard,  all  in  Whitestone,
          Queens, in which orders the Administrator had denied  the  owner's
          requests to raise maximum legal rents pursuant  to  claimed  major
          capital improvements ("MCIs") to the aforementioned premises.

          The owner later filed a petition under Article  78  of  the  Civil
          Practice Law and Rules, in which it requested the Supreme Court to 
          direct the above-referenced Division  expeditiously  to  determine
          the owner's administrative appeal.




          On May 7, 1991 an order was  signed  by  Justice  H.A.  Posner  so
          directing the Division.

          The proceedings were commenced on March 18 and 21, 1988, when  the
          owner filed applications  for  rental  increases  based  on  major
          capital  improvements,  to  wit:  gas  boilers  with  the  piping,
          electrical work and other labor pertaining  thereto.   In  denying






          DOCKET NUMBERS: EB-130359-363 - 130421-RO
          the increases, the Administrator stated in pertinent part that gas 
          burners had been installed in 1980 and new oil  boilers  in  1986,
          for both of which the above-referenced Division h d  granted  MCI-
          based rent adjustments,  and  that  the  "useful  life"  of  those
          improvements had not expired when the owner replaced them with the 
          boilers that form the subject of this proceeding.

          In appealing that order the owner states that the appurtenant gas, 
          water and plumbing lines are new and were not  previously  applied
          for; that the aforementioned new oil-fired boilers  were  replaced
          because, compared to gas, the supply of fuel oil was so unreliable 
          as to cause tenants hardship during the winter,  and  because  the
          price of oil is erratic; and  therefore  that  "at  least  partial
          allowance should  be  given  for  the  boiler(s)  because  as  you
          mentioned the useful life of the  previous  boiler(s)  w[ere]  not
          realized." 

          After careful consideration of the record as it pertains to  those
          assertions, the Commissioner is of the opinion that this  petition
          should be denied.

          If a major capital improvement is to lead to an  increase  in  the
          legal regulated rent, that improvement must have replaced an  item
          the "useful life" of which had expired.  As petitioner  explicitly
          acknowledges, that useful life had not expired  when  the  subject
          improvements were made.

          Petitioner  argues  that  due  to  the  above-quoted  reasons  for
          changing fuels, a "partial" increase should be  allowed  for  this
          improvement despite nonfulfillment of the useful life requirement. 
          The law, however, allows for no such partial  increase.   All  the
          criteria for an MCI-based increase must be met. If they  are  not,
          as in the instant proceeding, no increase at all is warranted.  

          The Division's Operational Bulletin 90-2 provides  for  waiver  of
          the useful-life requirement.  Such waiver must  be  requested,  at
          the latest, when the application is submitted,  and  can  only  be
          granted, moreover, where the  need  to  replace  was  clear.   The
          instant improvement, a voluntary change based on mere  preference,
          meets neither criterion.

          In addition, the installation  of  the  various  items  which  are
          merely appurtenances to the new gas  boilers  do  not  qualify  as
          improvements which would entitle the owner to rental adjustments.

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

          ORDERED, that these petitions be, and the same hereby are  denied,
          and that the decisions of the Rent Administrator be, and the  same
          hereby are, affirmed.


          ISSUED:




                                                                           






          DOCKET NUMBERS: EB-130359-363 - 130421-RO
                                             ELLIOT SANDER
                                             Deputy Commissioner
    

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