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 630282-RO
                                         :  
                                            RENT ADMINISTRATOR'S
       CHAMP CONCOURSE CO.,                 DOCKET NO. CC 630221-OM
                           PETITIONER    : 
     ------------------------------------X                             


           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


     On May 21, 1991 the above-named  petitioner-owner  filed  a  Petition  for
     Administrative Review against an order issued on April  25,  1991  by  the
     Rent Administrator, 92-31 Union Hall Street, Jamaica, New York  concerning
     housing accommodations known as 215 East  201  Street,  Bronx,  New  York,
     Various Apartments, wherein the Administrator authorized a  major  capital
     improvement (MCI rent increase for the installation  of  a  boiler/burner,
     but disallowed the claimed cost of ($2,925.00) for  hallway  carpeting  as
     not constituting a major capital improvement.

     In  this  petition  for  Administrative  Review  the  owner  contents,  in
     substance, that hallway carpeting satifies the  definitional  requirements
     of a major capital improvement; and that had a tenant  complained  of  the
     worn condition of the old carpeting  a  rent  reduction  would  have  been
     granted and thus, conversely, the replacement of new carpeting warrants  a
     rent increase.

     In response to the owner's  administrative  appeal  one  tenant  filed  an
     answer stating that the replacement of  the  carpet  was  merely  a  basic
     maintenance function for which  no  tenant  should  have  to  pay  a  rent
     increase.

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

     For work to qualify as a major capital improvement it must satisfy various 
     criteria, including that it be of a structural  nature  required  for  the
     operation preservation  and  maintenance  of  the  premises.   It  is  the
     established position of the Division that painting of public areas, tiling 
     of floors, wall covering as, well as carpeting of hallways (as is the case 
     herein) is cosmetic rather than structural in nature  and  thus  does  not
     qualify  as  a  major  capital  improvement.   While   certain   "cosmetic
     improvements"  may  qualify  for  a  rent  adjustment,  as  reflected   in
     Operational Bulletin 84-4 and the Code,  such  work  must  be  part  of  a
     consecutively time project performed within six  months  of  a  qualifying
     major capital improvement and be directly related thereto.  The owner  has
     failed to establish that the work in question meets the above criteria.








          DOCKET NUMBER: FE 630282-RO



     While an owner may be obligated to incur certain expenses for  maintenance
     and repair, this does not give rise to a major  capital  improvement  rent
     increase where otherwise not  warranted.   Accordingly,  the  Commissioner
     finds that  a  rent  increase  for  the  item  in  question  was  properly
     disallowed by the Rent Administrator.

     THEREFORE, in accordance with the provisions  of  the  Rent  Stabilization
     Code and the Rent Eviction Regulations for New York City, it is

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

     ISSUED:






                                                                   
                                          JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner




                                                   
    

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