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

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF                                             GE610152RT
                   Various Tenant of                            GE610325RT
                   678 E. 225th Street
                   Bronx, New York 
                                                  RENT ADMINISTRATOR'S
                                  PETITIONERS     DOCKET NO: CE630155OM

            GE610038RT, GE610229RT and GE610325RT and GRANTING PETITION FOR  
          The above-named petitioner-tenants timely filed administrative 
          appeals against an order issued on April 20, 1992 by the District 
          Rent Administrator (92-31 Union Hall Street, Jamaica, New York) 
          concerning the housing accommodations known as 678 East 225th 
          Street, Bronx, New York, various apartments, wherein the 
          Administrator granted major capital improvement (MCI) rent 
          increases for the controlled and stabilized apartments in the 
          subject premises based on the installation of new apartment 
          windows, a new intercom and a new boiler/burner.

          In these petitions the tenants raise various contentions regarding 
          the quality and adequacy of the installations. One tenant objects 
          to the permanent nature of the rent increase.

          In response the owner asserts, in substance, that the installations 
          are working properly.

          The Commissioner is of the opinion that the petitions filed under 
          Administrative Review Docket Nos. GE610038RT, GE610229RT and 
          GE610325RT should be denied and that the petition filed under 
          Administrative Review Docket No. GE610152RT should be granted and 
          remanded to the Administrator.

          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 

          Adm. Rev. Docket No. GE610038RT et. al.

          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.

          The record shows that complaints raised by the tenants in Apartment 
          1E and 2C regarding the windows, intercom and boiler/burner, and by 
          the tenant in apartment 1G regarding the windows were raised during 
          the proceeding below; that a physical inspection of the premises 
          was scheduled to investigate the complaints; and that the tenant of 
          apartment 1E informed the DHCR prior to the scheduled inspection 
          that he was cancelling his complaints. On July 15, and 17, 1991 and 
          March 19, 1992 physical inspections of the subject premises were 
          conducted by a DHCR staff member who reported that the tenant of 
          apartment 1G had no complaints regarding the window installation 
          and that the hot water was adequate, the intercom was working and 
          there was no evidence of defective windows in apartment 2C. The 
          Commissioner further notes that Division records disclose that no 
          heating complaints were pending during the proceeding below, nor 
          have any been filed since the issuance date of the Administrator's 
          order . Based on the supporting documentation submitted by the 
          owner the Administrator properly found the work in question to 
          constitute major capital improvements and properly determined that 
          a rent increase was warranted with exceptions as noted in the 
          Administrator's order. The tenants of apartments 1E , 1G and 2C 
          have not established that the increase should be revoked.

          Accordingly, the Commissioner finds that the petitions filed under 
          Administrative Review Docket Nos. GE610038RT, GE610229RT and 
          GE610325RT should be denied.

          Regarding the complaints raised by the tenant of Apartment BB, the 
          record discloses that said complaints were raised by the tenant 
          during the proceeding below and were not addressed by the 

          Therefore, the Commissioner finds that said tenant's petition, 
          filed under Administrative Review Docket No. GE610152RT, must be 
          remanded for such further processing (including a physical 
          inspection) as is necessary to resolve the issues therein.

          Adm. Rev. Docket No. GE610038RT et. al. 

          Regarding the contention that the MCI rent increase should not form 
          a permanent part of the rent structure, the Commissioner notes that 
          the permanent nature of the increase has been upheld by the Court 
          of Appeals of the State of New York in the Matter of Ansonia 
          Residents Association V. DHCR.

          This order and opinion is issued without prejudice to the tenants' 
          rights to file the appropriate application with the Division for a 
          decrease in rent based upon any current service deceases, if the 
          facts so warrant.

          THEREFORE, in accordance with the Rent and Eviction Regulations and 
          the Rent Stabilization Code, it is 

          ORDERED, that the petitions filed under Administrative Review 
          Docket Nos. GE610038RT, GE610229RT and GE610325RT be, and the same 
          hereby are, denied, and it is further ordered that the petition 
          filed under Administrative Review Docket No. GE610152RT be, and the 
          same hereby is, granted to the extent of remanding said proceeding 
          to the Rent Administrator for further processing in accordance with 
          this order and opinion. The automatic stay of so much of the Rent 
          Administrator's order as directed a retroactive rent increase is 
          hereby continued for apartment BB until a new order is issued upon 
          remand. However, the Administrator's determination as to a 
          prospective rent increase is not stayed and shall remain in effect 
          until the Administrator issues a new Order upon remand.


                                                   JOSEPH A. D'AGOSTA
                                                   Deputy Commissioner


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