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

          APPEAL OF                              DOCKET NO.: EH210280RT
                                                 RENT ADMINISTRATOR'S
             GERTRUDE C. LANE                    DOCKET NO.: BG230248OM
                                PETITIONER    : 


          On August 23, 1990, the above named petitioner-tenant timely filed 
          a petition for administrative review (PAR) against an order issued 
          on August 2, 1990, by a Rent Administrator (Gertz Plaza) concerning 
          the housing accommodations known as 2424 Kings Highway, Brooklyn, 
          New York, Apartment 1-D, wherein the Rent Administrator determined 
          that the owner was entitled to a rent increase based on the 
          installation of major capital improvements (MCI).

          The Commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion relevant to the issues raised 
          by this administrative appeal.

          The owner commenced this proceeding on July 15, 1987, by initially 
          filing an application for a rent increase based on the total 
          claimed cost of $81,793.02 for the following installations: 
          windows, lintels, doors, waterproofing and pointing, intercom and 

          On August 2, 1990 the Rent Administrator issued the order here 
          under review granting in part the owner's application authorizing 
          an increase for windows, doors, intercom system and  waterproofing 
          and pointing.  Disallowed by the Administrator was the total 
          claimed cost of $20,000.00 for lintels ($11,00) not installed 
          building-wide and sidewalk ($9,000) determined as a repair.

          In this petition, the tenant contends in substance, that she is a 
          senior citizen on Social Security with a small pension and a 
          pending SCRIE application; that based on an agreement (following 
          the death of her husband) with the former owner Capri Management 
          and David Malik Management she was "unilaterly and arbitrarily"  
          relocated from apartment 1-F, a six room apartment (converted to a 
          doctor's office) to apartment 1-D a three room apartment, in 
          exchange for assurances that the monthly rent ($252.23) would not 
          be raised; that the agreement has been disregarded and the same 
          ploy is being attempted by the current management and that based on 
          the agreement with the former owner rent increases in the 
          Administrator's order should be disallowed.


          ADMIN. REVIEW DOCKET NO.: EH210280RT

          The owner did not respond to the petition.

          After careful consideration of the entire record, 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, 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.

          The evidence of record in the instant case indicates that the 
          tenant did not file an objection in response to the owner's MCI 
          application while pending before the Administrator, although 
          afforded an opportunity.  Section 2529.6 of the Rent Stabilization 
          Code precludes a tenant from offering allegations for the first 
          time at the administrative level.  Further, the allegation posed by 
          the tenant has no direct relationship to the quality of the MCI 
          installations and therefore, irrelevant in the instant challenge .

          Any rent increase exemption arrangement the tenant may have entered 
          with the owner could possibly be addressed by filing with DHCR an 
          overcharge complaint.

          The Commissioner is not unmindful of the possibility that the rent 
          increases may prove burdensome to some tenants.  However, the 
          Commissioner is constrained by the applicable statutory and 
          regulator provisions to grant such increases as are warranted.

          A tenant who has a valid Senior Citizen Rent Increase Exemption 
          Order (SCRIE) may be exempted from that portion of the increase 
          which would cause the rent to exceed one-third of the tenant's 
          household monthly disposable income.

          THEREFORE, in accordance with the applicable provisions of the Rent 
          Stabilization Law and Code, it is

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

                                               JOSEPH A. D'AGOSTA
                                               Deputy Commissioner

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