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
      APPEALS OF                             DOCKET NOS.:
                                          :  GD 610138-RO; GE 610283-RT
      H & H EQUITIES, OWNER, AND             GD 610264-RT; GD 610262-RT
      VARIOUS TENANTS OF 185 McCLELLAN       GD 610263-RT; GD 610319-RT
      STREET, BRONX, NY,    PETITIONERS   :  GD 610320-RT; GD 610321-RT
      ------------------------------------X  GD 610322-RT; GD 610323-RT
                                             GD 610324-RT; GD 610325-RT
                                             GD 610326-RT; GD 610327-RT
                                             GD 610254-RT; GD 610255-RT
                                             GD 610256-RT; GD 610257-RT
                                             GD 610258-RT; GD 610260-RT
                                             GD 610261-RT; GD 610252-RT
                                             GE 610191-RT; GD 610265-RT
                                             GE 610155-RT; GD 610266-RT
                                             GD 610267-RT; GD 610268-RT
                                             GD 610026-RT

                                             RENT ADMINISTRATOR'S 
                                             DOCKET NO.: CJ 630085-OM

            ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW

      The above-named petitioners timely filed Petitions for Administrative 
      Review against an order issued on March 19, 1992 by the Rent Administrator, 
      (Gertz Plaza) concerning housing accommodations known as 185 McClellan 
      Street, Bronx, New York Various apartments, wherein the Administrator 
      granted, in part, the owner's application for major capital improvement 
      (MCI) rent increase.

      The Commissioner has reviewed all of the evidence of record and has 
      carefully considered that portion of the record relevant to the issues 
      raised by the administrative appeals.

      The owner commenced this proceeding below by filing a major capital 
      improvement rent increase application seeking to increase the rents of 
      controlled and stabilized apartments based upon the installation of waste 
      compactor, compactor doors, iron fence, fuel computer, and entrance doors 
      at a total claimed cost of $47,266.84.

      In response to the owner's application, the tenants alleged, in substance, 
      that the newly installed entrance doors are defective and are not kept 
      locked; that the compactor rooms are not kept clean and suffer from a 
      substantial infestation of rodents and cockroaches; that said compactor 
      rooms have opening in the walls.

      The owner responded by submitting a letter stating that the entrance doors 
      are not defective and are kept clean and secure; that it installed a new 
      compactor; and that the compactor rooms have no openings in the walls.








          DOCKET NUMBER: GD 610138-RT et al.
      In response to inquiry by the Administrator the owner stated that the 
      previously installed vestibule door was vandalized and thus was replaced by 
      a new system in 1988.

      The Rent Administrator's order appealed herein, stated that various tenants 
      had complained about the installation, but the owner in turn submitted a 
      statement denying the tenants' allegations; and that the tenants failed to 
      respond to a subsequent inquiry from this Division requesting them to 
      respond to the owner's statement.  The Administrator's order partially 
      granted the owner's application and authorized MCI rent increases for waste 
      compactors.  The order denied such portion of the application as pertained 
      to compactor doors, iron fence and fuel computer.  The Administrator 
      disallowed the entire claimed cost ($6,000.00) of the entrance doors since 
      said item had not exhausted their useful life at the time of replacement 
      and a rent increase adjustment was previously granted for same in September 
      1987.

      In their petitions the tenants (28) contend, in substance, that the waste 
      compactor is defective and inoperative; that daily garbage collecting is 
      not adequate; and that there is infestation of rodents throughout the 
      building.

      In response to the tenants' administrative appeals, the owner submitted 
      answers stating, in substance, that it installed three new compactors at 
      the subject premises; that the rodent infestation is due to the tenants 
      disposing their garbage in the hallways and in the compactor rooms.

      In its petition the owner contends, in substance, that the prior entrance 
      door was vandalized and thus required total replacement; that the new 
      entrance doors were installed prior to the issuance of the Agency's useful 
      life schedule (Operational Bulletin 90-2), and thus it is entitled to a 
      rent increase adjustment for the installation of same.

      In response to the owner's petition numerous tenants submitted statements 
      stating, in substance, that a rent increase adjustment was granted by the 
      Division for the entrance door system; and that said item is inoperative.

      After careful consideration, the Commissioner is of the opinion that both 
      the tenants' and owner's petitions 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 the Rent Stabilization 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, preservation, 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.  Piecemeal work or ordinary 
      repairs and maintenance does not constitute work for which a rent increase 
      adjustment is warranted under current and past procedure.





          DOCKET NUMBER: GD 610138-RT et al.
      The Commissioner notes that it has been the agency policy to prescribe 
      useful lives for MCI eligible installations and, in fact, Operational 
      Bulletin 90-2 sets forth already existing agency policy.  The useful life 
      for lobby entrance doors is 15 years.  The record reveals that on September 
      30, 1987 (Docket No. AG 630115-OM), the owner received an MCI rent increase 
      for the installation of entrance doors.  The useful life of the prior 
      installation had clearly not expired.  The owner failed to substantiate its 
      claim that the prior entrance door had been vandalized and was in such a 
      state of disrepair as to required total replacement, during course of the 
      proceeding below or on appeal.  Thus, the Administrator correctly denied a 
      rent increase adjustment for same.  The tenants' contentions with respect 
      to said doors are irrelevant since the entire claimed cost for said work 
      was properly disallowed by the Administrator.  

      As to the tenants' allegations pertaining to the condition of the waste 
      compactor, the Commissioner further notes that this issue is also being 
      raised for the first time on appeal and thus it should not be considered at 
      this stage of the proceeding.  However, this order is issued without 
      prejudice to the tenants' filing applications with the Division for rent 
      reductions based on decrease in services if the facts so warrant.

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

      ORDERED, that these petitions be and the same hereby are, denied and that 
      the order of the Rent Administrator be, and the same hereby is, affirmed. 

      ISSUED:










                                                                    
                                           JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner




                                                    
       





    

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