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   ADMINISTRATIVE REVIEW
          IN THE MATTER OF THE ADMINISTRATIVE     DOCKET NO.:  EH 430252RO 
          APPEAL OF

          GERALD L. SALZER,
                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO:  BG 410333OM 
          ------------------------------------X

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          On August 22, 1990, the above named petitioner-owner re-filed a 
          petition for administrative review of an order issued on December 
          11, 1990, by the Rent Administrator, concerning the housing 
          accommodation known as 326 West 87th Street, New York, NY, various 
          apartments, wherein the Administrator denied, in part, the owner's 
          application for a rent increase based on the installation of 
          various major capital improvements.

          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 the administrative appeal.

          The owner commenced the instant proceeding on July 2, 1987 by 
          initially filing an application for a rent increase based on the 
          installation of an oil burner and combustion chamber, chimney pipe 
          and damper, public hallway floor, roof and pointing, at a total 
          claimed cost of $5,508.54.

          On December 11, 1990, the Rent Administrator issued the order here 
          under review, finding that the roof and pointing qualified as MCIs, 
          determining that the part of the application pertaining to said 
          installations complied with the relevant laws and regulations based 
          upon the supporting documentation submitted by the owner, and 
          allowing rent increases for the rent stabilized tenants.  The 
          Administrator also determined that the oil burner and combustion 
          chamber, chimney pipe and damper, and public hallway floor did not 
          meet the criteria of an MCI.

          In this PAR, the owner requests modification of the Rent 
          Administrator's order and contends, in substance, that the oil 
          burner and combustion chamber were old and needed to be replaced, 
          the chimney pipe and damper had to be installed in relation to the 













          ADMIN. REVIEW DOCKET NO. EH 430252RO

          burner, and the installation of the tile floor in the public 
          hallway constituted a substantial improvement to the safety, as 
          well as the appearance of the building, the cost for which should 
          not have been excluded by the Administrator.

          After careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that this petition should be denied.

          Rent increases for MCIs are authorized by Section 2522.4 of the 
          Rent Stabilization Code for rent stabilized apartments.  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 to replace an item whose useful 
          life has expired.

          The Commissioner finds from the evidence of the record that while 
          the complete replacement of the previously existing boiler would 
          meet the definitional requirements of a major capital improvement, 
          the work in question entailed only the partial replacement of the 
          existing boiler.  Replacement of the oil burner and combustion 
          chamber was merely a repair of the existing boiler and therefore 
          does not qualify as an MCI.  It is noted that the owner did receive 
          an MCI rent increase based on the installation of a new 
          boiler/burner in 1988, under Docket No. CC 410095 OM.

          Under Section 2522.4(a)(2)(ii) of the Rent Stabilization Code, a 
          rent increase may be granted if there has been other necessary work 
          performed in connection with and directly related to an MCI.  The 
          replacement of the chimney pipe and damper was not performed in 
          connection with or related to an MCI, but was part of the repair 
          work performed on the existing boiler.

          DHCR has ruled in the past that flooring, whether it be carpeting 
          or tiles, is similar to painting in that it is primarily cosmetic 
          in nature, non-structural, non-depreciable and not necessary to the 
          maintenance, preservation or operation of the structure and thus, 
          is properly disallowed as a basis for an MCI rent increase.  The 
          owner himself characterizes the public hallway tiling as cosmetic.

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

          ORDERED, that this petition be, and the same hereby is, denied and 
          that the order of the Rent Administrator, be an the same hereby is, 
          affirmed.

          ISSUED: 

                                                                          
                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner













































































































           
    

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