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

      APPEALS OF                             DOCKET NOS.: BJ 230068-RT
      VARIOUS TENANTS OF 15 HAWTHORNE     :               BJ 230069-RT
      STREET, BROOKLYN,  AND                              BJ 230070-RT
      LOUIS MARKUS C/O NEIMAN COMPANY,                    BJ 230071-RT
      OWNER                 PETITIONERS   :               BJ 230070-RO
                                             RENT ADMINISTRATOR'S 
                                             DOCKET NO.: AG 230133-OM


      The above-named petitioners timely filed Administrative Appeals against an 
      order issued on September 17, 1987 by the District Rent Administrator, 92- 
      31 Union Hall Street, Jamaica, New York concerning housing accommodations 
      known as 15 Hawthorne Street, Brooklyn, New York, various apartments, 
      wherein the Administrator granted in part the owner's application and 
      authorized a major capital improvement rent increase.

      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 the petitions for Administrative Review.

      The owner commenced this proceeding by filing with the Division on July 21, 
      1986, a rent increase application for both rent controlled and rent 
      stabilized apartments in the subject premises, based on the installation of 
      an intercom system, entrance doors, painting of the fire escapes, new roof, 
      boiler/burner, and new thermal-break windows at a total cost of $23,344.67.

      On September 17, 1987 the Rent Administrator issued the order here under 
      review granting the application in part, excluding the costs for the 
      windows and painting of fire escapes on the ground that such installations 
      did not constitute major capital improvements.

      In their petitions for administrative review, the tenants fail to allege 
      any errors on which the Rent Administrator's order was based

      In his petiton the owner herein contends, in substance, that the window 
      installation should be granted; that eighty-one of the 116 windows 
      installed were paid through the Weatherization Assistance Program; and that 
      the owner paid for 35 of the 116 windows however at a cost of $5,675.00.  
      With respect to the painting of the fire escapes, the owner admits that 
      this work does not qualify as an MCI as to rent-stabilized tenants, but  
      asserts that he was advised that such work would so qualify as to the two 
      rent-controlled tenants.


          ADMIN. REVIEW DOCKET NO.: BJ 230068-RT et al.

      After a careful consideration of the entire record, the Commissioner is of 
      the opinion that the tenants' petitions should be terminated, and that 
      portion of the owner's petition which pertains to the installation of 
      windows should be granted, and the Rent Administrator's order modified 

      With respect to the tenants' petitions, 9 NYCRR 2529.1 provides that a 
      petition for administrative review must allege the errors upon which the 
      Rent Administrator's order is based.  As the tenants' petitions fail to 
      allege any such errors, no issues have been raised for determination and 
      the petitions should therefore be terminated.

      With respect to the owner's allegation concerning painting of the fire 
      escape, the Commissioner finds that the Rent Administrator properly denied 
      that portion of the rent increase application because such work does not 
      constitute a major capital improvement.  Such work is instead ordinary 
      repairs and maintenance of the subject building.  In addition the owner has 
      failed to establish that the cost of painting the fire escapes in September 
      1984 ($390.00) represents 10% of the operating and maintenance expenses for 
      the building as required by Section 33.1e of the Rent Regulations (other 
      improvements performed in conjunction with a qualifying MCI) as implemented 
      by Rent Control Advisory Sheet 1-33.1e.

      However, the record includes a copy of an agreement dated October 28, 1985 
      which confirms that Coalition Management Training Company paid for the 
      installation of 81 thermal break replacement windows and that the owner 
      paid for the remaining 35 replacement windows at a cost of $5,675.00.  

      Since the building-wide installation of windows to replace windows which 
      are 25 or more years old (as in the case herein) constitutes a major 
      capital improvement, the Commissioner is of the opinion and finds that the 
      owner is entitled to an additional rent increase to reflect the owner's 
      cost ($5,675.00) for the windows; and that the Administrator's order should 
      be modified based on a revised total approved cost of $22,869.10.  This 
      results in a rent increase for rent controlled apartments of $4.82 (rather 
      than $3.63) per room, per month, effective as of October 1, 1987 (the first 
      rent payment date after issuance of the Administrator's order) and a rent 
      increase for stabilized apartments of $6.88% (rather than 5.18%), of the 
      rent in effect on the June 1986 rent roll date, effective November 1, 1986 
      collectible at the rate of 6% as of August 1, 1987 plus .88% as of August 
      1, 1988.  (Said increase is computed in accordance with the methodology and 
      formula then in effect as set forth on page 3 of the Administrator's 

      The tenants may pay any arrears in rent arising as a result of this order 
      in 12 equal monthly installments.

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


          ADMIN. REVIEW DOCKET NO.: BJ 230068-RT et al.

      ORDERED, that the tenants' petitions be, and the same hereby are 
      terminated; that the owner's petition be, and the same hereby is granted in 
      part; that the Administrator's order be,  and the same hereby is modified 
      in the manner and to the extent indicated herein; and that as so modified 
      said order be, and the same hereby is affirmed.


                                           JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner


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