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

          -------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
                    MARLENE SIGMAN                 RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  ZCK430129OM


          On March 30, 1989 the above-named petitioner-owner filed an 
          administrative appeal against an order issued on March 8, 1989 by 
          the Rent Administrator (92-31 Union Hall Street, Jamaica, New York) 
          concerning the housing accommodations known as 79 Barrow Street, 
          NY, NY, various apartments, wherein the Administrator denied a 
          major capital improvement (MCI) rent increase for the rent 
          stabilized apartments in the subject premises based on the 
          installation of new elevator push-button stations and refurbished 
          elevator cab.

          The Rent Administrator's order appealed herein stated that the 
          installations do not constitute a major capital improvement, but 
          are considered repairs and maintenance.

          On appeal, the petitioner-owner states, in substance, that the 
          installation qualifies as a major capital improvement; the items 
          are depreciable under the Internal Revenue Code; the items required 
          a sign-off from the Buildings Department, and if the work 
          constituted ordinary repairs, such filing would not have been 
          necessary; although the Rent Stabilization Code only refers to 
          "Elevator Upgrading", and does not list the replacement of push- 
          button stations and refurbishing of elevator cabs specifically, the 
          J-51 Regulations specifically list those items as major capital 

          After a careful consideration of the entire evidence of the record, 
          the Commissioner is of the opinion that the administrative appeal 
          should be denied.

          It is the well established position of the Division that for a 
          partial elevator modernization (upgrading) to qualify as a major 
          capital improvement, the installation must include a new 
          controller/selector, the electronic brain of the elevator.  The 
          installation of push-button stations and the refurbishing of an 
          elevator cab, as evidenced by the contract, constitute repair items 
          which the Administrator properly found not to qualify as a major 
          capital improvement. 

          ADMIN. REVIEW DOCKET NO. DC-430326-RO

          Regarding the owner's reference to J-51 tax abatement benefits, the 
          Commissioner notes that the J-51 program is governed by an 
          independent body of law and regulations.  Thus, the ruling therein 
          is not determinative in this proceeding which requires an 
          independent determination as to whether the installation qualifies 
          as a major capital improvement within the purview of the specific 
          Rent Laws and Regulations applicable to this matter.

          On the basis of the entire evidence of record, it is found that the 
          Administrator's order is correct and should be affirmed.

          THEREFORE, in accordance with the applicable provisions of the Rent 
          Stabilization Law and Code and Operational Bulletin 84-1, it is

          ORDERED, that the administrative appeal be, and the same hereby is 
          denied, and the Administrator's order be, and the same hereby is 


                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner


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