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. EH 120257-RT
                                         :  
                                            RENT ADMINISTRATOR'S
        FRIEDA SCHECHTER                    DOCKET NO. DI 130046-OM
                           PETITIONER    : 
     ------------------------------------X                             
                                         
           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On August 23,  1990,  the  above-named  rent  controlled  tenant  filed  a
     petition for administrative review of an order issued on August  10,  1990
     by a District Rent Administrator  concerning  the  housing  accommodations
     known as 111-09 76th Road, Forest Hills, New York, Apartment D5.

     The  administrator  granted  the  owner's   application   based   on   the
     installation of a major capital improvement, to wit the installation of  a
     new boiler/burner (the existing heating system was in excess of  30  years
     of age) and necessary asbestos removal.

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

     On appeal, the petitioner-tenant alleges, in substance, that  the  subject
     boiler could have been repaired rather than replaced; the asbestos removal 
     should not have formed a part of the MCI rent increase and that  her  rent
     has been increased more than 15% and that this is in violation of the Rent 
     Laws.

     After careful consideration, the Commissioner is of the opinion  that  the
     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.  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.  The rent       
     increase is computed based on an amortization of  the  cash  cost  of  the
     improvement  over  five  years  or  sixty  months.   In  accordance   with
     established Division policy the collectibility of  an  MCI  rent  increase
     cannot exceed 15 percent of the rent controlled  tenant's current rent  as
     of the effective date of the order in any one year.

     The  record  discloses  that  the  Administrator  properly  applied  these
     principles to the owner's application.  The boiler/burner installation
     for which rent increases were allowed fits the above  definition  and  the
     cost thereof was substantiated by the owner.







          DOCKET NUMBER: EH 120257-RT
     Regarding the asbestos, it is and has been the  policy  of  this  Division
     that asbestos removal when completed in conjunction with  a  boiler/burner
     installation is an allowable MCI expense.

     The Commissioner notes that the subject apartment's rent  on  record  with
     the Division indicates that the MCI rent increase falls  well  within  the
     15 percent MCI rent increase cap on collectibility as above indicated.

     The Commissioner further notes that this order is issued without prejudice 
     to the right of the tenant to file a rent overcharge  complaint  with  the
     Division if the facts so warrant.

     THEREFORE, in accordance with the provisions  of  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 District Rent Administrator's  order  be,  and  the  same  hereby  is,
     affirmed.

     ISSUED:












                                                                   
                                          JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner




                                                   
    

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