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

      APPEALS OF                             DOCKET NOS.:CK 430054-RT
                                          :              CK 410055-RT
        VARIOUS TENANTS OF                               CK 410056-RT
        503 EAST 83RD STREET                             CK 410057-RT
        NEW YORK, NY        PETITIONERS   :              CK 410058-RT
      ------------------------------------X              CK 410139-RT
                                                         CK 410155-RT
                                                         CK 420156-RT

                                             RENT ADMINISTRATOR'S
                                             DOCKET NO.: AL 430224-OM


      Various tenants timely filed or refiled Administrative Appeals against an 
      order issued on October 19, 1989 by a Rent Administrator, 92-31 Union Hall 
      Street, Jamaica, New York, concerning the housing accommodations known as 
      503 East 83rd Street, New York, New York, Various Apartments, wherein the 
      Rent Administrator determined that the owner was entitled to a rent 
      increase based on a major capital improvement for both the controlled and 
      stabilized apartments in the subject premises based on the installation of 
      a new roof.  Said order was issued after a review of supporting 
      documentation submitted by the owner and the tenant responses received 

      It is noted that the tenants did not question the quality of the work 
      performed but merely argued that the maintenance of a roof is the owner's 
      responsibility the cost of which should not be borne by the tenants.

      The Commissioner deems it appropriate to consolidate these administrative 
      appeals for determination under this order and opinion as they involve 
      common issues of law and fact.

      In their petitions for administrative review, the tenants request reversal 
      of the Rent Administrator's order alleging 1) the installation of the new 
      roof was merely ordinary maintenance; 2) tenants responded indicating 
      objections which were pertinent to the owner's application, and 3) the 
      installation of the new roof should not be considered an addition to the 
      rental value of the building.

      In answer to the tenants' petitions, the owner alleges that he has 
      completely replaced and insulated the roof as stated by law; and has 
      followed proper procedure in filing for a major capital improvement rent 

      After careful consideration the Commissioner is of the opinion that these 
      petitions should be denied.


          DOCKET NUMBER: 430054-RT
      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 

      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.

      It is the established position of the Division that the installation of a 
      complete new roof surfaces (in the case herein) meets the definitional 
      requirements of a major capital improvement.

      The record in the instant case includes a copy of an invoice, proposal and 
      cancelled checks, which indicates that the owner has complied with all 
      applicable procedures for a major capital improvement.  The Commissioner 
      finds that the tenants' objections do not constitute a bar to an owner 
      obtaining a major capital improvement rent increase which is otherwise 

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

      ORDERED, that these petitions be, and the same hereby are, denied, and that 
      the order of the Rent Administrator be, and the same hereby is, affirmed.


                                           JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner


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