ADM. REVIEW DOCKET NO. BI-430113 RO
                                    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 REVIEW
          APPEAL OF                              DOCKET NO.:  BI-430113  RO
                          
                                              :
                                                 DRO       ORDER       NO.:
                                                 ZAE-430027-OM 
              PERRY                      TOWERS                      ASSOC.
              C/O REHAB ASSOC.,  
                                                  

                              PETITIONER      : 
          ------------------------------------X 

            ORDER AND OPINION GRANTING ADMINISTRATIVE APPEAL IN PART AND 
                           REMANDING PROCEEDING ON APPEAL
                                           

               On September 18, 1987 the above-named petitioner-owner filed 
          an Administrative Appeal against an order issued on September  8,
          1987 by the District Rent Administrator  (Gertz  Plaza,  Jamaica,
          New York) concerning  the  housing  accommodations  known  as  28
          Perry Street, New York, New York, various apartments, wherein the 
          Administrator denied the owner's application  for  major  capital
          improvement  (MCI)  rent  increases  for   the   controlled   and
          stabilized apartments in the subject premises. 

               The owner commenced the proceeding below by filing  its  MCI
          application  with  the  Administrator  in  June  of  1986.    The
          application was based upon  the  painting  of  the  hallways  and
          pointing/waterproofing of the subject building.  Various  tenants
          objected to the owner's application, some of whom  stated,  among
          other   things,   that   they   were    not    aware    of    any
          pointing/waterproofing work having been done.   

               The District Rent Administrator's  order,  appealed  herein,
          stated that the pointing and  waterproofing  were  not  performed
          building-wide  and  that  the   painting   constituted   ordinary
          maintenance.

               On appeal, the petitioner-owner contends, in substance, that 
          the pointing and waterproofing work should not have  been  denied
          since the contractor had examined  every  part  of  the  building
          surface and performed work where necessary to make  the  building
          watertight.  


               In response to the owner's appeal, the tenant  of  apartment
          2-R stated, in substance,  that  (A)  no  work  beyond  necessary
          maintenance has been  done  at  the  premises;  (B)  the  bedroom
          ceiling next to an outside wall leaks when it rains; and (C)  the
          hallway stairs were fixed in an unworkmanlike manner.  The tenant 
          of apartment 1-E stated that he was not aware of any work  having






          ADM. REVIEW DOCKET NO. BI-430113 RO
          been done.

               After a careful consideration  of  the  entire  evidence  of
          record the Commissioner is of the opinion that the administrative 
          appeal should be granted in part and this proceeding remanded  to
          the Administrator for further processing in accordance with  this
          order and opinion.

               A  review  of  the  record  discloses  that  the  petitioner
          submitted documentation in the proceeding below  indicating  that
          pointing work was done at the subject premises which qualified as 
          an MCI.  This documentation  included  copies  of  the  contract,
          contractor's certification, invoice, cancelled  checks,  and  the
          contractor's affidavit for the pointing work.   The  contractor's
          affidavit stated, in substance, that the contractor examined  all
          the exposed surfaces throughout  the  entire  building  and  then
          performed  all  work  necessary  to  make  the  entire   building
          watertight.  The contractor also stated that the work covered the 
          total surface area of  approximately  4,150  square  feet  (in  a
          sixteen unit  building)  and  submitted  a  diagram  showing  the
          location of the work performed. 

               Thus, the owner submitted documentation indicating that  the
          pointing work was done at the subject premises  where  necessary,
          and this proceeding should be remanded to the  Administrator  for
          such  further  processing  (including  consideration  of   tenant
          objections) as is necessary to determine  whether  the  work  was
          done in a workmanlike manner so as to entitle the owner to an MCI 
          increase.

               However,  the  record  also   discloses   that   since   the
          waterproofing work herein covered only 73.5  square  feet  in  an
          alleyway of the building, it did not constitute an MCI.  

               THEREFORE, in accordance with the applicable  provisions  of
          the Rent Stabilization Code, the Rent  and  Eviction  Regulations
          for New York City, and Operational Bulletin 84-1, it is

               ORDERED, that the Administrative appeal  be,  and  the  same
          hereby is granted to the extent of remanding this  proceeding  to
          the Administrator for further processing in accordance with  this





          order  and  opinion.   The  order  and   determination   of   the
          Administrator remains in full force and effect until a new  order
          is issued upon remand.

          ISSUED:














          ADM. REVIEW DOCKET NO. BI-430113 RO
                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                                                    

    

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