FI 530437-RT

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

          APPEAL OF                               DOCKET NO.:   
                                                  FI              530437-RT
                   VARI0US TENANTS OF
                   45 THAYER STREET,              RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                  PETITIONER      CH 530097-OM


          On August 13, 1991 various tenants  at  the  above-named  address
          filed a petition for administrative review of an order issued  on
          August 8, 1991, by a Rent Administrator concerning  the  building
          known as 45 Thayer Street, New York, New York, wherein  the  Rent
          Administrator determined that the owner was entitled  to  a  rent
          increase based on major capital improvements (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 August 10, 1988 by  filing
          an application  for  a  rent  increase  based  on  major  capital
          improvements, to wit - apartment windows and roof bulkhead  doors
          at a total cost of $53,331.00.

          On January 12,  1989,  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 

          Two of the petitioning tenants  filed  objections.   One  claimed
          economic hardship and the other raised unrelated  apartment  ser-
          vice issues.  Twenty-nine of the remaining thirty-one petitioners 
          did not file any objections to the owner's application although
          afforded the opportunity to do so.

          On August 8, 1991, the Rent Administrator issued the  order  here
          under review finding that the installations  qualified  as  major
          capital improvements, 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-
          In their petition for administrative review, the tenants  request

          FI 530437-RT
          modification of the Rent Administrator's order  and  allege  that
          the boiler does not work properly and that  there  is  inadequate
          heat and hot water.

          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 2202.4 of the Rent  and  Eviction  Regulations  for  rent
          controlled apartments and Section 2522.4 of t e  Rent  Stabiliza-
          tion Code for rent stabilized apartments.  Under rent control, an 
          increase is warranted where there has been since July 1,  1970  a
          major capital improvement required for the  operation,  preserva-
          tion, or maintenance of the structure. 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 Commissioner notes that the issue of heat and  hot  water  in
          the building is unrelated to the  installations  which  were  the
          subject of the Rent Administrator's proceeding.  It is  addition-
          ally noted not one of the thirty-one petitioning  tenants  raised
          the issue of inadequate heat and hot water when  this  proceeding
          was pending before the Rent Administrator, although they were all 
          afforded the opportunity to do so.  Further, twenty-nine  of  the
          petitioners raised no objection whatsoever before the Rent Admin 
          istrator.   Accordingly,  the  Commissioner  finds,  pursuant  to
          Section 2529.6 of the Rent Stabilization Code and prior  adminis-
          trative determinations, that the objection being raised now,  for
          the first time on administrative appeal, may  not  be  considered

          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  tenants  have  not  established
          that the increase should be revoked.

          This order and opinion is issued without prejudice  to  the  ten-
          ants' rights to file complaints based on inadequate heat and  hot
          water if the facts so warrant.

          THEREFORE, in accordance with  the  Rent  Stabilization  Law  and
          Code, and the Rent and Eviction Regulations for New York City, 
          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.



          FI 530437-RT
                                                ELLIOT SANDER
                                                Deputy Commissioner


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