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

      APPEALS OF                             DOCKET NOS.:BC510319RT/
                                          :   BC510318RT/BC510152RT/
      VARIOUS TENANTS OF 545 WEST 164TH       BC510151RT/BC510320RT
      STREET, NEW YORK, NY                   
                            PETITIONERS   :  RENT ADMINISTRATOR'S
      ------------------------------------X  DOCKET NO.: OM5950         


      The above-named petitioners timely filed Petitions for Administrative 
      Review against an order issued on February 28, 1986 by the Rent 
      Administrator (Gertz Plaza), concerning housing accommodations known as 545 
      West 164th Street, New York, various apartments, wherein the Administrator 
      authorized a major capital improvement rent increase adjustment based on 
      the installations of new thermal windows, a new roof, main and vestibule 
      doors, new intercom system, pointing/waterproofing and new elevator 
      including controller/selector.

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

      Five tenants filed administrative appeals against the Administrator's 
      order.  These appeals are consolidated herein for a uniform determination 
      in this proceeding as all contain common issues of law and fact.

      In these petitions the tenants do not question the propriety of the 
      Administrator's finding with respect to the quality of the work performed 
      but rather indicate that they were not informed of the proceeding below 
      until the owner made requests for payment based on the authorized rent 
      increase.  Also, the tenant of apartment 2A alleges, in substance, that the 
      bedroom window is broken; and that essential services are not being 
      maintained in her apartment, and as result many items are defective and 

      After careful consideration the Commissioner is of the opinion that with 
      the exception of Administrative Review Docket No. BC510319RT, these 
      petitions should be denied.

      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 major capital improvement required for the 
      operation, preservation or maintenance of the structure.  Under Rent 
      Stabilization the improvement must generally be building-wide; depreciable 


          ADMIN. REVIEW DOCKET NO.: BC510319RT,

      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.  Piecemeal work ordinary 
      repairs and maintenance does not constitute work for which a rent increase 
      adjustment is warrant under current and past procedures 

      At the outset the Commissioner notes that the owner certified in accordance 
      with procedures then in effect that on February 6, 1985, it served each 
      tenant with a copy of the application and placed a copy of the entire 
      application including all required supplements and supporting documentation 
      with the resident superintendent of the subject building.  The record 
      confirms that notice was received as evidenced by a response to the 
      application from a tenant of the subject premises.

      The record in the instant case indicates that the owner correctly complied 
      with the application procedures for a major capital improvement  and the 
      Rent Administrator properly computed the appropriate rent increases.  The 
      tenants have not established that the Administrator's order should be 
      revoked.  However, the record confirms that apartment 2A was subject to 
      rent controlled at the time the application was filed; and that the 
      petitioner of said apartment (Linda Camilo) is the first stabilized tenant 
      thereof.  Since the free market rent charged included any and all services 
      then being provided, the Commissioner is of the opinion and finds, in the 
      absence of a fair market rent appeal, that said tenant and all future 
      Stabilized tenants of apartment 2A are exempt from the rent increase 
      provided for in the Administrator's order.  The owner is cautioned that a 
      violation of this provision could result in a rent overcharge 

      Regarding the tenant's allegation (apartment 2A) pertaining to items 
      needing repairs, the Commissioner notes that this order is issued without 
      prejudice to the petitioner's right to seek redress by filing a complaint 
      based upon a diminution in services, if the facts now so warrant.

      On the basis of the evidence of record the Commissioner finds 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 the Rent and Eviction Regulations for New 
      York City, it is

      ORDERED, that the petitions for administrative review under Docket Nos. 
      BC510318RT, BC510152RT, BC510151RT, BC410320RT be, and the same hereby are 
      denied; that the petition for administrative review under (Docket No. 
      BC510319RT) be, and the same hereby is granted in part; and that the 
      Administrator's order be, and the same hereby is modified by exempting 
      apartment 2A from the rent increase as of the date it first became subject 
      to rent stabilization jurisdiction; and that as so modified said 
      Administrator's order be, and the same hereby is affirmed, it is further


          ADMIN. REVIEW DOCKET NO.: BC510319RT,

      ORDERED, that the owner refund to the tenant of apartment 2A (Linda Camilo) 
      any excess rent which may have been collected as a result of this order, 
      within 30 days from the date of issuance thereof.


                                           JOSEPH A. D'AGOSTA
                                           Deputy Commissioner


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