ADMIN. REVIEW DOCKET NO.: BH 110032-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 REVIEW
      APPEALS OF                             DOCKET NOS.: BH 110032-RT
                                          :  BH 110033-RT/BH 110034-RT
      VARIOUS TENANTS OF 105-07 66TH ROAD,   BH 110036-RT/BH 110240-RT
      FOREST HILLS, NEW YORK                 
                            PETITIONERS   :  RENT ADMINISTRATOR'S
      ------------------------------------X  DOCKET NO.: QS 000907-OM   

       ORDER AND OPINION GRANTING IN PART PETITIONS FOR ADMINISTRATIVE REVIEW

      On various dates the above-named petitioner-tenants timely filed 
      administrative appeals against an order issued on July 31, 1987 by the 
      District Rent Administrator (92-31 Union Hall Street, Jamaica, New York) 
      concerning the housing accommodations known as 105-07 66th Road, Forest 
      Hills, New York, various apartments, wherein the Administrator granted 
      major capital improvement (MCI) rent increases for the stabilized 
      apartments in the subject premises based on the installation of new 
      plumbing building wide, adequate rewiring, a new roof and pointing, and 
      elevator upgrading with selector and controller.

      These petitions are being consolidated for disposition herein as they all 
      involve common issues of law and fact.

      The owner commenced this proceeding on September 12, 1985 by  filing an 
      application for a rent increase based on the installation of the 
      above-mentioned items at a total cost of $632,247.50.

      Five tenants submitted objections to the owner's application.

      The order of the Rent Administrator granted, in part, the owner's 
      application and authorized an increase for new plumbing, building-wide, 
      adequate rewiring, a new roof and pointing, and elevator upgrading 
      including controller and selector.  Disallowed by the Administrator were 
      the unsubstantiated cost of $12,255.64 for plumbing; and the amount of 
      $6,187.50, which represents the sales taxes for the roof and pointing which 
      the Administrator determined did not constitute a major capital 
      improvement.

      In their petitions, the tenants contend, in substance, that:

           1.  these rent increases violated the annual 6% limitation on MCI
               increases as two prior MCI increases had already been granted 
               (ZQS 000780-OM and ZQS 000801-OM).

           2.  the owner failed to serve upon the tenants the requisite     
               application form RA-79, a Notice Form RA 79-N and three      
               copies of the answer Form RTP-3.
               
      In response to the petitions, the owner contends, in substance, the 
      following:







          ADMIN. REVIEW DOCKET NO.: BH 110032-RT



        
           1.  all tenants were given notice of the MCI application and were  
               afforded an opportunity to respond.  Additionally, the master  
               application was kept in the superintendent's office at 105-10  
               66th Avenue at all times.  Some of the tenants registered    
               their objections to the rent increase, however the DHCR
               found that their objections were not related to the installations.

           2.  he was aware that the 6% annual limitation had already been  
               reached, and therefore he would defer collecting the new     
               increase until February 1, 1988.
               
      After careful consideration of the entire record, the Commissioner is of 
      the opinion that these petitions should be granted in part.              

      Rent increases for major capital improvements are authorized by Section 
      2522.4 of the Rent Stabilization Code for rent stabilized apartments.    
      Under rent stabilization, the improvement must generally be building-wide; 
      depreciable 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.

      The evidence of record in the instant case indicates that the owner, as per 
      the procedures in effect at the time of his application, certified that on 
      June 10, 1986 he provided to the tenants Notice to tenant forms, a copy of 
      the application and response forms.  Additionally, the owner certified that 
      a copy of the Tenant Review package was available for review in the office 
      of the superintendent.  Furthermore, ample proof is provided that the owner 
      served notice to the tenants as there were several written objections 
      registered by various petitioner-tenants in the proceeding below.

      DHCR records indicate that two earlier MCI rent increases (Docket Number 
      ZQS 000780-OM issued September 17, 1986; Docket Number ZQS 000801-OM issued 
      January 29, 1987 and amended July 6, 1987) were authorized for the subject 
      premises with collection schedules as follows:

           permanent rent increase: 4.29% collectible  October 1, 1986
                                    1.71% collectible February 1, 1987
                                    3.34% collectible February 1, 1988
           temporary rent increase: 3.58% collectible  October 1, 1986
                                    2.42% collectible February 1, 1987
                                    0.95% collectible February 1, 1988

      The order appealed herein authorized a permanent rent increase of 14.74% 
      (of the June 1, 1985 rent roll date) effective as of August 1, 1986, 
      collectible as follows:

           permanent increase:     6.00% collectible June 1, 1987
                                   6.00% collectible June 1, 1988
                                   2.74% collectible June 1, 1989

           temporary increase:     6.00% collectible June 1, 1987
                                   6.00% collectible June 1, 1988        
                                   0.28% collectible June 1, 1989


          ADMIN. REVIEW DOCKET NO.: BH 110032-RT




      Section 2522.4(a)(8) of the Rent Stabilization Code provides that the 
      collection of MCI increases "shall not exceed six percent in any year...  
      In no event shall more than one six percent increase... be collected in the 
      same year for the permanent, prospective rent increase, and no more than an 
      additional six percent increase for the temporary retroactive portion of 
      such rent increase."

      Applying these principles to the facts at hand, it becomes apparent that 
      the collection schedules set forth in the Rent Administrator's order must 
      be modified as follows in order to conform with Section 2522.4(a)(8):   

           permanent rent increase (per apartment per month)

           year    date of effecuation    percentage (of the June 1, 1985
                                                      rent roll date)

            1      February 1, 1988          2.66%
            2      February 1, 1989          6.00%
            3      February 1, 1990          6.00%
            4      February 1, 1991          0.08%

           temporary rent increase  (per apartment per month)

           year    date of effectuation   percentage (of the June 1, 1985
                                                      rent roll date)

            1      February 1, 1988          5.05%     for 12 months
            2      February 1, 1989          6.00%     for 12 months
            3      February 1, 1990          1.23%     for 12 months

      THEREFORE, in accordance with the Rent Stabilization Law and Code, it is

      ORDERED, that these petitions be, and the same hereby are, granted in part, 
      and that the Rent Administrator's order be, and the same hereby is, 
      modified as hereinabove indicated, and that as so modified, said order be, 
      and the same hereby is, affirmed.

      ISSUED:





                                                                    
                                           JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner




                                                    
       





    

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