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

          -------------------------------------X   ADMINISTRATIVE REVIEW
          APPEALS OF
                    VARIOUS TENANTS OF             RENT ADMINISTRATOR'S    
                    339 E. 58TH STREET,            DOCKET NO.:  LCS000557OM
                    NEW YORK, NY    


          The above named petitioner-tenants timely filed petition for 
          administrative review (PARs) against an order issued on July 8, 
          1987, by a Rent Administrator(Gertz Plaza) concerning the housing 
          accommodations known as 339 East 58th Street, New York, New York, 
          various apartments, wherein the Rent Administrator determined that 
          the owner was entitled to a rent increase based on the installation 
          of a major capital improvement (MCI).

          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 administrative appeal.

          The owner commenced this proceeding on April 24, 1985, by filing an 
          application for a rent increase based on the installation of a 
          boiler/burner at a total cost of $48,650.00.

          On July 8, 1987, the Rent Administrator issued the order here under 
          review, finding that the installation qualified as an MCI, 
          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 rent controlled and 
          rent stabilized tenants.

          In the petition, the tenants contend, in substance, that the 
          boiler/burner system is of inferior quality when compared to the 
          previously existing system; during the first quarter of the year, 
          there were days with no heat or hot water in the building; and they 
          continue to experience irregular water pressure with no temperature 
          control as surging hot water comes through the system creating a 
          safety problem.  In addition, the tenant of apartment 6K questions 
          the room count of said unit.

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


          The record discloses that the owner substantiated its application 
          in the proceeding below by submitting to the Rent Administrator in 
          support thereof copies of accepted contractor's proposal, an 
          owner's affidavit in lieu of the contractor's certification, 
          various governmental certificate/approvals, and cancelled checks 
          for the improvement in question.  The petitioners herein, on the 
          other hand, have failed to establish either in the proceeding below 
          or on appeal the alleged inadequacy of the work performed or that 
          services were not being maintained.  In this respect, it is 
          significant to note that the records of the Division disclose that 
          no rent reduction order has been issued against the subject 
          premises based on the owner's failure to maintain services of a 
          building-wide nature nor was any such complaint pending, including 
          a complaint of inadequate heat or hot water, at the time the order 
          appealed herein was issued.  The tenants have failed to establish 
          that the Administrator's order should be revoked.

          With respect to the room count of apartment 6K, the Commissioner 
          notes that the Administrator's order was predicated upon the unit 
          being a one-room apartment.  The owner may not charge the tenant 
          based on a greater number of legal rooms for MCI purposes.  This 
          order and opinion is issued without prejudice to the tenant filing 
          a rent overcharge complaint with this Division, if the facts so 

          This order and opinion is issued without prejudice to the tenants' 
          right to file an application for a rent reduction based on a 
          decrease in services, including any current defects in heat and/or 
          hot water services, if the facts so warrant.

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

          ORDERED, that this petition be, and the same hereby are, denied, 
          and that the Rent Administrator's order be, and the same hereby is, 


                                                         JOSEPH A. D'AGOSTA
                                                        Deputy Commissioner


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