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

          -------------------------------------X   ADMINISTRATIVE REVIEW
          APPEALS OF                               FE610167RT,   FE610168RT,
                    VARIOUS TENANTS OF             FE610169RT,   FE610217RT
                    1718 GRAND AVENUE
                    BRONX, NEW YORK                RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  CG630103OM



          The above-named petitioner-tenants timely filed Petitions for 
          Administrative Review (PARs) against an order issued on December 
          21, 1990, by the Rent Administrator (Gertz Plaza), concerning the 
          housing accommodations known as 1718 Grand Avenue, Bronx, New York, 
          various apartments, wherein the Rent Administrator granted a major 
          capital improvement (MCI) rent increase based on the installation 
          of new replacement windows, new boiler/burner and pointing.

          Five tenants filed Administrative Appeals against the Rent 
          Administrator's order.  These appeals are consolidated herein for 
          a uniform determination in this proceeding as they involve common 
          issues of law and fact.

          The owner commenced the proceeding below on July 19, 1988 by filing 
          an application to increase rents for stabilized apartments based on 
          the installation of new replacement windows, new boiler/burner and 
          pointing.  The tenants affected by the owner's rent increase 
          application were notified and were afforded an opportunity to 
          interpose answers.  One tenant responded but the petitioners- 
          tenants herein did not file responses.

          On December 21, 1990, the Rent Administrator issued the order here 
          under review finding that the installations qualified as major 
          capital improvements and granting appropriate rent increases for 
          rent stabilized apartments.

          On appeal, the tenants contend, in substance, that several tenants 
          submitted responses to the owner's MCI application; that the new 
          boiler/burner was installed by the previous owner; that there is a 
          lack of heat and hot water; that the pointing work was not done; 
          and that the windows were not installed in a workmanlike manner so 
          they malfunction and as a result, cold air seeps into their 


          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that these administrative appeals 
          should be denied.
          Rent increases for major capital improvements 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 replace an item 
          whose useful life has expired.

          The record in the instant case indicates that the owner correctly 
          complied with the application procedures for major capital 
          improvements and the Rent Administrator properly computed the 
          appropriate rent increase for those installations found to qualify.

          The Commissioner notes, as confirmed by the record, that the 
          tenants of the subject premises were served by the Administrator 
          with notice of the instant application and that the petitioners 
          herein failed to respond thereto.  Fundamental principles of the 
          administrative appeal process and Section 2529.6 of the Rent 
          Stabilization Code prohibit a party from raising issues on appeal 
          which were not raised below.  The subject tenants could have raised 
          the very issues before the Rent Administrator which they seek to 
          raise for the first time on appeal.  Accordingly, the Commissioner 
          is constrained to foreclose consideration of these issues in this 
          appeal proceeding.

          The Commissioner further notes that the tenants of the subject 
          premises has since filed an application (Docket No. FA630135HW) for 
          a rent reduction for lack of heat and hot water and said 
          application was denied based on a physical inspection which 
          disclosed that heat and hot water services were being provided.

          Based on the entire evidence of record, the Commissioner finds that 
          the Administrator's order is correct and should be affirmed.

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

          ORDERED, that these petitions be, and the same hereby are denied; 
          and that the Administrator's order be, and the same hereby is 


                                                         Joseph A. D'Agosta
                                          2            Deputy Commissioner

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