FE 430081-RT
                                  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
          IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
          APPEAL OF                               DOCKET NO.:   
                                                  FE 430081-RT
                 ROBIN                                            SCHWARTZ,
                                                  RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                  PETITIONER      CB 430178-OM
          ----------------------------------x


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW   


          On May 2, 1991, the above-named  tenant,  filed  a  petition  for
          administrative review of an order issued on April 25, 1991, by  a
          Rent Administrator concerning the housing accommodation, known as 
          780 Madison Avenue, New York, New York, wherein the Rent Adminis 
          trator determined that the owner was entitled to a rent  increase
          based on a major capital improvement (MCI).

          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  February  24,  1988  by
          filing an application for  a  rent  increase  based  on  a  major
          capital improvement, to wit - elevator upgrading and a  new  roof
          over elevator room at a total cost of $53,980.00.

          On June 29, 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
          thereupon.

          The tenant, on July 19, 1988 filed an objection  to  the  owner's
          application alleging in substance that the elevator wo k  consti-
          tuted maintenance during the course of the work.

          On April 25, 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 controll d  and  rent  stabilized  apart-
          ments.  
                         
          In her petition for administrative review,  the  tenant  requests
          reversal of the Rent Administrator's order and attaches thereto a 
          copy of her original objection of July 19, 1988.








          FE 430081-RT
          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 Law 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  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.


          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.


          ISSUED:


                                                                           
                                                ELLIOT SANDER
                                                Deputy Commissioner


                                          
    

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