OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA

                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEALS OF                                           FL610055RT
                    VARIOUS TENANTS                            FL610098RT
                                                  RENT ADMINISTRATOR'S
                               PETITIONERS        DOCKET NO.:  DJ630075OM 


          The above-named petitioner-tenants timely filed or refiled 
          petitions for administrative review (PAR's) against an order issued 
          on October 31, 1991 by a Rent Administrator (Gertz Plaza) 
          concerning the housing accommodations known as 2175 Morris Avenue, 
          Bronx, New York, various apartments, wherein the Rent Administrator 
          determined that the owner was entitled to a rent increase based on 
          a major capital improvement (MCI).

          The Commissioner deems it appropriate to consolidate these 
          petitions for disposition since they pertain to the same order and 
          involve common issues of law and fact.

          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 these administrative appeals.

          The owner commenced this proceeding on April 12, 1988 by initially 
          filing an application for a major capital improvement rent increase 
          predicated on the installation of a new boiler/burner, at the 
          subject premises, at a total claimed cost of $46,000.00.  In 
          support of his application, the owner submitted copies of the 
          contracts, permits and cancelled checks.

          Three tenants answered opposing the owner's application.  In 
          substance, the tenants challenged the application on the grounds 
          that the new boiler/burner was purchased in 1988 by the previous 
          owner and that they (the tenants) were never told that an increase 

          ADMIN. REVIEW DOCKET NOS.: FL610054RT et al.

          in rent would be requested.  They, however, failed to identify any 
          pertinent reason why the rent increase should not be granted.  Six 
          of the petitioning-tenants, namely the tenants of apartments 1E, 
          2E, 3C, 3G, 4D, and 5D did not submit any answer to the owner's 

          On October 31, 1991, the Rent Administrator issued the order 
          hereunder review finding that the installation of a new 
          boiler/burner 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 increases for both rent controlled and rent 
          stabilized apartments.

          In their petitions for administrative review, the tenants 
          contended, in substance, that the boiler/burner was purchased some 
          four years before the time of petitioning; that the boiler/burner 
          was not new; that they never received any notice, informing them of 
          a new boiler/burner, prior to the installation; that they live on 
          a fixed income; and that they cannot afford an increase in rent.

          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that these petitions 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 installation of a new boiler/burner 
          qualifies as a major capital improvement for which an increase may 
          be warranted.  The record indicates that the owner substantiated 
          his application by submitting copies of the permit, contract and 
          cancelled checks.  The record confirms that the owner correctly 
          complied with the applicable procedures for a major capital 
          improvement rent increase.  The Commissioner further notes that on 
          appeal, the tenants do not allege any errors on which the Rent 
          Administrator's order was based but merely assert that the boiler 
          was not new; that they were not informed of the new boiler/burner 
          prior to the installation and that they cannot afford an increase 
          in rent.


          ADMIN REVIEW DOCKET NOS.: FL610054RT et al.

          The Commissioner finds that a new boiler/burner was purchased and 
          installed in 1988 by Hi-Tech Combustion Ltd. as per the supporting 
          documents submitted by the owner; that due process was afforded to 
          all tenants; and that three tenants, including one of the 
          petitioning-tenants, opposed the owner's application but failed to 
          identify any pertinent reason why the rent increase should not have 
          been granted.

          With regard to the tenants' assertion that they were never informed 
          of the new boiler/burner, prior to its installation, the 
          Commissioner notes that such prior notice is not necessary and that 
          tenants' consent is also not necessary where the installation 
          qualifies as a major capital improvement.

          A review of the Division's records discloses that no rent increase 
          was previously granted for the installation of a new boiler/burner 
          for the subject premises.  Further, it is the established position 
          of the Division that the installation of a new boiler/burner to 
          replace one that has exceeded its useful life, as is the case in 
          the instant proceeding, constitutes a major capital improvement for 
          which a rent increase may be warranted, providing the owner 
          otherwise so qualifies.

          The Commissioner is not unmindful of the possibility that the rent 
          increase may prove burdensome to some tenants.  However, the 
          Commissioner is constrained by the applicable statutory and 
          regulatory provisions to grant such increases as are warranted.

          A tenant who has a valid Senior Citizen Rent Increase Exemption 
          Order (SCRIE) is exempted from that portion of the increase which 
          would cause the rent to exceed one-third of the tenant's household 
          monthly disposable income.  A tenant who may be entitled to this 
          benefit may contact the New York City Department of the Aging by 
          calling (212) 240-7000.

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

          ORDERED, that these administrative appeals be, and the same hereby 
          are denied, and that the Administrator's order be, and he same 
          hereby is affirmed.


                                                       JOSEPH A.  D'AGOSTA
                                                       Deputy Commissioner


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