FE 410129 RT
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                             JAMAICA, NEW YORK    11433

          APPEAL OF                           DOCKET NO.:  FE 410129 RT

                     RUTH FLAXMAN,                           
                                              DISTRICT RENT ADMINISTRATOR'S
                                              DOCKET NO.:  BL 430279 OM


          On May 2, 1991, the above-named tenant  refiled  a  petition  for
          administrative review of an order issued on February 22, 1991, by 
          a Rent Administrator concerning the housing accommodation,  known
          as Apartment 15E, 175 West  76th  Street,  New  York,  New  York,
          wherein the Rent Administrator  determined  that  the  owner  was
          entitled to a rent increase based on a major capital improvement. 

          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 petition for review.

          The owner, commenced this proceeding  on  December  31,  1987  by
          filing an application for  a  rent  increase  based  on  a  major
          capital improvement, to wit--new boilers and burners at  a  total
          cost of $107,000.00.

          On April 21, 1988, the Division of Housing and Community  Renewal
          (DHCR) served each tenant with a  copy  of  the  application  and
          afforded the tenants the opportunity to  review  it  and  comment

          The  tenant  filed  an  objection  to  the  owner's   application
          questioning  the  cost  of  the  boiler  and  alleging  that  the
          building's elevator was defective.

          On February 22, 1991, the Rent  Administrator  issued  the  order
          here under review finding that the installation  qualified  as  a
          major  capital  improvement,  determining  that  the  application
          complied with the relevant laws and regulations  based  upon  the
          supporting documentation submitted by  the  owner,  and  allowing
          appropriate  rent  increases  for  rent   controlled   and   rent
          stabilized apartments.

          In her petition for administrative review,  the  tenant  requests
          reversal of the Rent Administrator's order and alleges  that  the

          FE 410129 RT
          boiler installation constituted maintenance rather than  a  major
          capital improvement and raises the issue of service  deficiencies
          in her apartment.  (hot water temperature and painting).

          In  answer  to  the  tenant's  petition  the  owner  submits  the
          statements of a plumber and the oil burner company dated June  13
          and June 18, 1991 stating that the water temperature is  adequate
          and the burner is operating properly.

          After careful consideration the Commissioner is  of  the  opinion
          that this petition 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 the maintenance  of  the  structure;
          and replace an item whose useful life as expired.

          The Commissioner notes  that  the  tenant  did  not  raise  these
          objections  while  this  proceeding  was   pending   before   the
          administrator  although  afforded  the  opportunity  to  do   so.
          Accordingly, since they are raised for  the  first  time  now  on
          appeal they may not be considered herein.

          The record in the instant case indicates that the owner correctly 
          complied with the application  procedures  for  a  major  capital
          improvement and the  Rent  Administrator  properly  computed  the
          appropriate rent increases.  The tenant has not established  that
          the increase should be revoked.

          This order  and  opinion  is  issued  without  prejudice  to  the
          tenant's right to file a  complaint  based  on  a  diminution  of
          service if the facts so warrant.

          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 Rent Administrator's order be, and the  same  hereby
          is, affirmed.


                                                  ELLIOT SANDER
                                                  Deputy Commissioner

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