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

          APPEAL OF                              DOCKET NO.: EF230219RO
                                                 RENT ADMINISTRATOR'S
             P.G.B. REALTY CORP.                 DOCKET NO.: BI230008OM
                                PETITIONER    : 


          On June 14, 1990 the above-named petitioner-owner timely filed a 
          petition for administrative review (PAR) of an order issued on May 
          11, 1990, by a Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          479 Ovington Avenue, Brooklyn, New York, various apartments.

          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 administrative appeal.

          The owner commenced this proceeding on September 1, 1987 by filing 
          a major capital improvement rent increase (MCI) application 
          predicated on the following installations:

          (1)  windows                        $12,235.00
          (2)  roof                           $ 3,700.00
          (3)  pointing and waterproofing     $ 5,270.00
               For a total claimed cost of    $21,205.00.

          The tenants did not submit an objection to the owner's MCI 
          application although afforded the opportunity to do so.

          On May 11, 1990, the Rent Administrator issued the order here under 
          review, finding that the windows and the pointing and waterproofing 
          qualified as major capital improvements, determining that the part 
          of the application relating to said installations complied with the 
          relevant laws and regulations based upon the supporting 
          documentation submitted by the owner, and authorizing rent 
          increases for the rent controlled and rent stabilized apartments.  
          The Rent Administrator denied the installation of the roof (for not 
          being 3-ply), finding that this work did not qualify as a major 
          capital improvement.

          In this petition, the owner contends, in substance, that the roof 
          resurfacing, along with new gutters and a new skylight, complies 
          with the Housing Code.

          None of the tenants submitted an answer to the owner's petition.


          ADMIN. REVIEW DOCKET NO.: EF230219RO

          After careful consideration of the entire evidence of record, 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 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, preservation, 
          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.

          Whereas the Administrator's determination was predicated on a newly 
          issued Policy Statement (90-6) the Commissioner notes that the 
          eligibility requirements of a roofing installation for MCI purposes 
          was effectively revised pursuant to Policy Statement 91-2, issued 
          February 26, 1991 and effective 30 days thereafter indicating that 
          a single ply roof cap of traditional asphalt materials will no 
          longer be considered eligible for a major capital improvement rent 
          increase.  However, it was the policy of the DHCR that a roof cap 
          sheet of the type involved herein qualified as a new roof at the 
          time the work in question was performed.  

          The Commissioner further notes that the new gutters and skylight 
          were installed contemporaneously with and were directly related to 
          the roof installation.  Based on the foregoing, the Commissioner 
          finds that the owner is entitled to an additional rent increase for 
          the roof, gutter and skylight installations which were previously 
          excluded from the total approved MCI cost.  

          Accordingly, the Administrator's order is modified as follows: the 
          owner is entitled to a rent increase of $9.55 per room, per month, 
          for rent stabilized apartments ($8.25 per room, per month, 
          previously approved rent increase + $1.30 per room, per month, 
          computed as follows: $3,700.00 installation claimed cost - 
          $1,275.39 commercial tenant share = $2,424.61 divided by 60 months 
          = $40.42 divided by 31 rooms = $1.30) and $7.31 per room, per month 
          for rent controlled apartments (reflecting a J-51 tax abatement 
          offset of $2.24 per room, per month modifying the previous J-51 tax 
          abatement of $2.00).  Said additional increase of $1.30 per month 
          for stabilized apartments and $1.04 per room per month for 
          controlled apartments is effective for rent stabilized apartments 
          as of January 1, 1988 (the first rent payment date 30 days after 
          the owner completed the instant application by serving all affected 
          tenants with a copy thereof) and effective for rent controlled 
          tenants as of June 1, 1990 (the first of the month following 
          issuance of the Administrator's order).

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

          ADMIN. REVIEW DOCKET NO.: EF230219RO

          ORDERED, that this petition be, and the same hereby is, granted, 
          and that the Rent Administrator's order be, and the same hereby is, 
          modified in the manner and to the extent indicated above, and as so 
          modified said order be, and the same hereby is, affirmed; and it is

          FURTHER ORDERED, that the tenants may pay any arrears in rent 
          arising as a result of this order and opinion in twenty-four equal 
          monthly installments.


                                               JOSEPH A. D'AGOSTA
                                               Deputy Commissioner


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