EF 130179-RO

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

          ----------------------------------x     S.J.R. NO.: 5712
          APPEAL OF                               DOCKET NO.:   
                                                  EF 130179-RO 
                   V. ANAND
                                                  DOCKET NO.:
                                  PETITIONER      BG 130652-OM


          On June 8, 1990, the above-named petitioner-owner, filed a  Peti-
          tion for Administrative Review against an order issued on May  3,
          1990 by the Rent Administrator, 92-31 Union Hall Street, Jamaica, 
          New York concerning the housing accommodations,  known  as  37-03
          95th Street, 95-08 37th Avenue and 3706  Warren  Street,  Jackson
          Heights, New York, various accommodations.

          Subsequent thereto, the petitioner-owner filed a petition in  the
          Supreme Court pursuant to Article 78 of the  Civil  Practice  Law
          and Rules requesting that the "deemed denial" of the petitioner's 
          administrative appeal be annulled.  The proceeding w s  then  re-
          mitted, by Court order, to the Division for consideration of  the
          petitioner's administrative appeal.

          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 administrative appeal.

          On July 29, 1987,  the  owner  filed  an  application  for  Major
          Capital Improvement (MCI) rent increases based  n  the  installa-
          tion of a new boiler and burner at the subject  premises  between
          September, 1984 and October, 1986, at a  total  claimed  cost  of
          $54,000.00.  The owner submitted copies of various approvals  and
          permits for the work performed.

          In response to the application, one tenant noted,  in  substance,
          that the new boiler/burner was installed by the  prior  owner  in
          1984 over a period of three weeks.

          On October 19, 1988, the owner was requested to submit  proof  of
          payment (copies of checks and/or affidavits of cash paid or other 
          documentary evidence) of the claimed cost of  the  MCI.   In  re-
          sponse, the owner submitted a letter from the contractor advising 

          EF 130179-RO
          that it had received payment in the amount of $54,000.00 for  its
          work at the subject premises.

          On February 28, 1990, the owner was requested  to  submit,  among
          other things, a copy of Form B16A (Certificate  of  Approval  for
          Oil Burning Installation).  

          In response, the owner indicated that he was attempting to locate 
          the certificate and that he had been informed by  the  contractor
          that all necessary forms had  been  filed.   The  owner   further
          indicated that he had contacted the Department of  Buildings  re-
          garding the certificate but was unable to obtain any information.

          On March 26, 1990, the owner was served with a Final  Notice  re-
          questing, among other things, a copy of Form B16A and a  copy  of
          the executed contract.

          There is no indication in the record that the owner  submitted  a
          reply to the notice.

          In the order appealed herein, the Rent Administrator  denied  the
          owner's MCI application based on the owner's  failure  to  submit
          the requested evidence.

          In this petition, the owner  indicated  that  it  had  filed  the
          necessary plans and applications in order  to  obtain  the  rein-
          statement of  the  application  for  the  issuance  of  the  B16A
          certificate and contended that the delay in issuing the  certifi-
          cate was an oversight by the Department of  Buildings  for  which
          the owner  should  not  be  penalized.   The  owner  subsequently
          submitted a copy of the certificate.

          Various tenants submitted responses to  the  petition  asserting,
          among other things, that the owner should not be entitled to  MCI
          rent increases.

          The Commissioner is of the opinion that this petition  should  be

          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 t e  Rent  Stabiliza-
          tion Law 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; 
          required for the operation, preservation, and maintenance of  the
          structure; and replace an item whose useful life has expired.

          The record shows that although the owner submitted a copy of  the
          Certificate of Approval (Form B16A)  on  appeal,  the  owner  was
          twice requested to submit a copy of the certificate during the 
          proceeding before the Rent Administrator and  failed  to  do  so.
          Further, the owner did not submit any documentary evidence,  e.g.
          copies of the executed contract, bills,  invoices,  or  cancelled

          EF 130179-RO
          checks, to substantiate the claimed  cost  of  the  boiler/burner
          installation.  Accordingly, the Commissioner finds that the  Rent
          Administrator properly denied the  owner's  application  for  MCI
          rent increases.

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

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


                                                ELLIOT SANDER
                                                Deputy Commissioner


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