OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA

                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF                                           

                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO.: CF230135OM 


          On November 14, 1991, the above-named petitioner-owner timely 
          refiled a petition for administrative review of an order issued on 
          September 18, 1991 by a Rent Administrator (Gertz Plaza) concerning 
          the housing accommodations known as 1917 75 Street, Brooklyn, New 
          York, various apartments.

          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 this petition for administrative review.

          The owner commenced this proceeding on June 20, 1988 by initially 
          filing a major capital improvement rent increase application with 
          the Rent Administrator predicated on the installation of new 
          apartment windows, at a total claimed cost $8,000.00.  In support 
          of his application, the owner submitted copies of the contract and 
          cancelled checks for the amount of $2,600.00.

          The owner certified that on June 15, 1988 he served each tenant of 
          record with a copy of the application, and placed one copy of the 
          entire application, including all required supplements and 
          supporting documentation, in the office of the manager at 1917 75 
          Street,   Brooklyn, New York.  No response was received from any of 
          the tenants.

          On July 10, 1991, the Rent Administrator requested copies of the 
          cancelled checks for the balance of payment amounting to $5,400.00.

          The owner responded on August 20, 1991 stating that he had taken a 
          loan for the balance of $5,400.00; that he was paying the loan in 
          monthly installments; and that he had no cancelled checks to 

          ADMIN. REVIEW DOCKET NO.: FK230049RO

          On September 18, 1991, the Rent Administrator issued the order here 
          under review finding that the building-wide installation of new 
          apartment windows 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 rent increases for all the apartments 
          based upon the approved cost of $2,600.00.  Disallowed by the Rent 
          Administrator, was the total of $5,400.00 since the owner failed to 
          submit copies of the cancelled checks to substantiate his claim.

          In his petition for administrative review, the owner requests 
          modification of the Rent Administrator's order contending, in 
          substance, that he had filed for a rent increase based on the total 
          cost of $8,000.00 excluding finance charges; that the cancelled 
          checks for the sum of $2,600.00 were submitted at the time of 
          filing; that the sum of $5,400.00 was taken as a loan and paid for 
          in installments; that as a result of the loan being paid for in 
          installments, proof of payment could not have been submitted at the 
          time of filing; that he has now secured and submitted the required 
          proof; and that he has also submitted copies of the retail 
          installment obligation, as well as a letter from Ensign Bank, 
          stating that the loan had been paid-in-full.

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

          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 maintenance of the structure; and replace an item 
          whose useful life has expired.

          The Commissioner notes that the building-wide replacement of 
          apartment windows qualifies as a major capital improvement for 
          which an increase may be warranted, providing the owner otherwise 
          so qualifies.  The record indicates that the owner failed to 
          substantiate his claimed cost with copies of the cancelled checks 
          for the total sum.  However, the Commissioner notes that due to the 
          nature of the transaction, wherein the owner had obtained $5,400.00 
          by a loan and was paying said loan in monthly installments, that it 
          was not possible for him to submit the required documentation at 



          the time of filing of the major capital improvement rent increase 
          application.  The Commissioner finds that the owner has now 
          submitted the necessary documents, namely the cancelled checks, the 
          retail installment obligation and a letter from the bank stating 
          that said loan has been repaid in full.

          Based upon the facts and circumstances herein, including the 
          evidence of the cancelled checks for the balance of the total 
          claimed cost, the Commissioner is of the opinion and finds that the 
          owner is entitled to an additional rent increase of $3.75 per room, 
          per month, based on an additional approved cost of $5,400.00.  Said 
          increase is effective February 1, 1989.

          THEREFORE, in accordance with the applicable provisions of the Rent 
          Stabilization Law and Code, it is

          ORDERED, that the owner's petition be, and the same hereby is, 
          granted in part; that the Rent Administrator's order be, and the 
          same hereby is, modified to the extent of providing an additional 
          rent increase of $3.75 per room, per month for the installation of 
          new apartment windows; and that as so modified, the order of the 
          Rent Administrator be, and the same hereby is, affirmed, and it is 

          ORDERED, that the tenants pay any arrears in rent resulting from 
          this order in twenty-four equal monthly installments subject to the 
          following statutory limitations on collectibility: (1) with respect 
          to rent stabilized apartments, 6% of the rent charged on the June 
          1, 1988 rent roll date in any twelve month period with a similar 
          limitation on the collection of temporary arrears, with any overage 
          collectible in succeeding years subject to the same limitation on 


                                                      JOSEPH A. D'AGOSTA
                                                      Deputy Commissioner


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