BB 130483-RT; BB 130484-RT
                                  STATE OF NEW YORK
                      DIVISION OF HOUSING AND COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433


          -----------------------------------X 
          IN THE MATTER OF THE ADMINISTRATIVE:   ADMINISTRATIVE APPEAL
          APPEALS OF                         :   DOCKET NOS. BB 130483-RT
                                             :               BB 130484-RT
             CLARA SCHONHERZ and             :                        
             LARAINE LEVENSON,               :   D.R.O. DOCKET NO.
                                             :              QCS 000892-OM
                              PETITIONERS    : 
          -----------------------------------X                           


                  ORDER AND OPINION DENYING ADMINISTRATIVE APPEALS

          On February 23,  1987  the  above-named  petitioner-tenants  filed
          Administrative Appeals against an order issued on January 28, 1987 
          by the District  Rent  Administrator,  92-31  Union  Hall  Street,
          Jamaica, New York, concerning the housing accommodations known  as
          110-07 73rd Road, Forest Hills, New York, Apartments 3A and 3D.

          The  Commissioner  deems  it  appropriate   to   consolidate   the
          administrative appeals for  determination  under  this  order  and
          opinion as they involve common issues of law and fact.

          The Administrative Appeals are being determined  pursuant  to  the
          provisions of 9 NYCRR 2202.4 and 9 NYCRR 2522.4.

          The issue  herein  is  whether  the  District  Rent  Administrator
          properly determined the owner's application for  a  rent  increase
          based  upon  the  major  capital  improvement  (MCI)  of  elevator
          upgrading.

          The Commissioner has reviewed all of the evidence  in  the  record
          and has carefully considered that portion of the  record  relevant
          to the issue raised by the administrative appeals.

          This proceeding was originally commenced by the owner's filing  of
          an application for a major capital improvement rent increase based 
          on elevator upgrading.  The owner submitted proof  that  it  spent
          $10,930.00 for the upgrading and submitted the  required  approval
          by the Department of Buildings for the elevator work.

          In Order Number ZQCS 000892-OM, the  District  Rent  Administrator
          determined that the elevator  upgrading  constituted  an  MCI  and
          allowed appropriate rent increases  for  the  rent-controlled  and
          rent-stabilized  tenants  based  on  the  cost  of  the   elevator
          upgrading.






          BB 130483-RT; BB 130484-RT

          In their petitions, the tenants contend, in  substance,  that  the
          subject  premises  was  converted  to  cooperative  ownership   on
          November 7, 1983 and the owner herein,  as  owner  of  the  unsold
          shares, has no standing to seek a rent increase.   In  support  of
          such contention the tenants cite Grand Leasing Company v. New York 
          State Division of Housing and Community Renewal, 509 NYS  2d  768.
          The tenants further allege that the work done was necessary repair 
          work.
            
          The Commissioner is of the opinion that these petitions should  be
          denied.

          Firstly, the Commissioner notes that  the  two  petitions  herein,
          which are identical to each other, are also identical to  a  third
          petition which was assigned Administrative Review Docket  No.  BC-
          130002-RT.  On July 5, 1990, the Commissioner issued an order  and
          opinion denying the administrative  appeal  under  Docket  No.  BC
          130002-RT.  The Commissioner's determination was  based  upon  the
          following discussion:

               The   elevator   upgrading   work   consisted   of    the
               installation of controllers  and  selectors.   Such  work
               qualifies as an MCI pursuant to the relevant sections  of
               the  Regulations  (or  Code),  and  is  not  regarded  as
               ordinary repair and maintenance  work.   With  regard  to
               the case cited by the tenant, it  was  noted  that  Grand
               Leasing  Company,  supra,   disallowed   an   alternative
               hardship rent increase for holders of unsold shares in  a
               cooperative which owned rent regulated apartments.   Such
               decision is not applicable to an MCI  rent  increase  for
               rent  regulated  apartments.    Accordingly,   the   Rent
               Administrator's order was warranted.  


          In view of foregoing  final  determination  of  an  administrative
          appeal which was identical  to  the  two  instant  appeals,  which
          decision was not further appealed in Court, the Commissioner finds 
          that the instant appeals must similarly be denied.

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

          ORDERED, that these petitions be, and the same hereby are, denied, 
          and that the District Rent Administrator's order be, and the  same
          hereby is, affirmed.

          ISSUED:

                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner