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

          -------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
                    LABE TWERSKI ET. AL.
                                                   RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  ZLCS000681OM



          On June 30, 1987, the above named petitioner-owner timely refiled 
          a petition for administrative review (PAR) against an order issued 
          on April 3, 1987, by a Rent Administrator concerning the housing 
          accommodations known as 134 West 93rd Street, New York, NY, 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 July 18, 1985, by initially 
          filing an application for a rent increase based on the installation 
          of an oil boiler/burner at a total cost of $45,995.00.  The Rent 
          Administrator disallowed unsubstantiated expenditures in the amount 
          of $11,498.76 which resulted in a total approved cost of 

          In this petition, the owner has submitted an additional expenditure 
          in the amount of $9,199.00 which is substantiated by a copy of the 
          cancelled check paid to Marlande Heating Corp.  The original copy 
          had been previously submitted on December 13, 1985, to the DHCR in 
          the proceeding below but did not receive consideration by the Rent 
          Administrator for reasons unknown.

          Two tenants responded to the owner's petition raising no relevant 
          issues pertinent to the outcome of this PAR other than 
          considerations given to Senior Citizens (a tenant with a valid 
          Senior Citizen Rent Increase Exemption is not required to pay a 
          rent increase which is in excess of one third of the tenant's 
          income, as stated in the Administrator's order).

          ADMIN. REVIEW DOCKET NO. BG-430424-RO

          After considering that portion of the record relevant to the issues 
          raised by this petition, the Commissioner finds that the petition 
          should be granted in part.

          Thus, the Commissioner recalculates the MCI rent increase herein as 

                    For Rent Controlled Apartments (in NYC only) the legal 
                    regulated rent is hereby increased by an additional .83 
                    cents per room, per month, for a total of $3.92 per room, 
                    per month, on the   basis of the following calculation:
                    $43,695.24 (allowable cost)  60  186 (number of rooms) 
                    = $3.92 per room, per month, effective as of May 1, 1987.
                    For Rent Stabilized Apartments (in NYC only) the rent is 
                    hereby increased by an additional .62% of 1 percent for  
                    a total cost of 2.97% or $2.97 per each $100.00 of rent  
                    paid, effective as of November 1, 1985, based on the 
                    following calculation since the building contains both 
                    rent stabilized and rent controlled apartments:
                      Allowable cost of MCI                    $43,695.24
                      Ratio of Rent Stabilized Apts. 
                        (34) to total number of Apts. 
                        in the building (53), 
                        excluding the Superintendent's Apt.         64.15% 

                      Apportioned cost of MCI
                        (Item 1 Multiplied by Item 2)         $28, 030.50
                      Amortization of cost over 
                        5 years (60 months) 
                         (Item 3   5)                        $  5,606.10   
                      Annual Gross Rent of Stabilized Apts.
                        including apportionment of Commercial
                        Rents if required (as of May 1985)    $188,562.72
                      Percentage of Rent Increase
                        (Item 4 divided by Item 5)                  *2.97% 

          *  The dollar amount may be determined by multiplying the 
          percentage (2.97%) by the amount of rent charged as submitted in 
          the rent roll dated May 1985.

          ADMIN. REVIEW DOCKET NO. BG-430424-RO

          The remaining $2,299.76 of expenditures claimed remains 

          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 is, granted in 
          part; that the Rent Administrator's order be, and the same hereby 
          is, modified, so as to provide that the MCI increase be based upon 
          an approved cost of $43,695.24 which results in an additional 
          increase of $.83 per room, per month, for rent controlled 
          apartments effective as of May 1, 1987, and an additional increase 
          of .62% of 1 percent per each $100.00 of rent paid on the May 1985 
          rent roll date, for rent stabilized apartments effective as of 
          November 1, 1985, and that in all other respects said order of the 
          Rent Administrator be, and the same hereby is, affirmed.

          The tenants may pay any arrears in rent arising as a result of this 
          order and opinion to cover the period between the effective dates 
          of the Administrator's order (November 1, 1985, for stabilized 
          apartments and May 1, 1987, for rent controlled apartments) and the 
          date of issuance of this order of the Commissioner, in twelve equal 
          monthly installments.  Current tenants are not obligated to pay 
          arrears for the period prior to the date they took occupancy.

          The Commissioner further notes that as to any apartment which first 
          became subject to Rent Stabilized jurisdiction after the April 3, 
          1987, issuance date of the Administrator's order, the additional 
          rent increase provided for herein is not collectible since the free 
          market rent charged the first rent stabilized tenant includes any 
          and all services then being provided.


                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner


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