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

      APPEAL OF                              DOCKET NO.:DG 630053-RT
           EDWARD RAVIN AND                  RENT ADMINISTRATOR'S
           VARIOUS TENANTS                   DOCKET NO.: BD 610515-OM
                            PETITIONER    : 


      On July 5, 1989, the above-named petitioner-tenants filed an Administrative 
      Appeal against an order issued on June 1, 1989 by a Rent Administrator, 92- 
      31 Union Hall Street, Jamaica, New York concerning housing accommodations 
      known as 3525 Perry Avenue, Bronx, New York, various apartments.  The Rent 
      Administrator determined that the owner was entitled to a rent increase 
      based on a major capital improvement consisting of the installation in 1984 
      of a new roof.

      The owner initiated the proceeding by filing an application with the Rent 
      Administrator on April 30, 1987.  In response to the application, various 
      tenants filed answers, alleging the existence of recurring major leaks in 
      their apartments.  In response to the tenants' allegations the owner 
      submitted a statement from the managing agent, dated March 31, 1989 to the 
      effect that the conditions complainted of by the tenants do not stem from 
      the roof but rather are due to the need for brick pointing; that spot 
      pointing as well as new windows were installed in 1987 which should have 
      resolved tenants' problems; and that no recent complaints of water leakage 
      have been received.

      Thereafter on May 18, 1989, a physical inspection was conducted by DHCR, 
      the report of which disclosed that leakage existed in apartments 7C, 7E and 
      7F resulting in water damage to the ceilings and walls in said three 
      apartments.  The inspector was unable to gain access to apartment 7A.

      The Rent Administrator's order granting the owner's application barred the 
      owner from collecting the increase for the above-mentioned apartments, 
      including apartment 7A, until repairs are made to said units.

      On appeal, the petitioner-tenants assert, in substance, that the Rent 
      Administrator's order should be reversed based on the poor quality of the 
      roof installation.

      In response to the tenants' petition herein, the owner's representative 
      filed an answer, stating that the building was recently sold and that the 
      present owner is aware of leakage problems with the roof, characterized as 
      "minor", and that necessary repairs will be completed.

      The Commissioner is of the opinion that the petition should be granted.


          ADMIN. REVIEW DOCKET NO.: DG 630053-RT

      In order for work to qualify for a major capital improvement rent increase 
      it must meet various criteria, including the requirement that the 
      installation be performed in such a workmanlike manner so as to inure to 
      the benefit of all tenants.  While the installation of a new roof cap sheet 
      of the type involved herein has been held to qualify as a major capital 
      improvement at the time the work in question was performed, such roof must 
      be installed in such a manner that for a reasonable period of time 
      thereafter the building, particularly the top floor apartments which are 
      most directly affected, are free from exterior water seepage emanating from 
      the roof and surrounding roof parapet areas above the top floor window 

      Based upon the record before the Administrator (as confirmed on 
      administrative appeal) including the complaints that leaks always existed 
      or recurred, and the DHCR inspector's finding that all of the top (7th) 
      floor apartments inspected (three out of eight) displayed ceiling damage 
      from roof leaks, the Commissioner finds that it was an error for the 
      Administrator to have granted the application for a new roof.  Accordingly, 
      the Commissioner further finds that as to all apartments the rent increase 
      of $.88 per room, per month should be revoked.

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

      ORDERED, that this petition be, and the same hereby is granted; that the 
      order of the Rent Administrator and the rent increase provided for therein 
      be, and the same hereby is revoked; and it is further

      ORDERED, that the owner refund to the tenants of rent controlled apartments 
      any excess rent collected as a result of this order, within 30 days from 
      the date of issuance hereof; and it is further

      ORDERED, that as to tenants of rent stabilized apartments, the owner credit 
      any excess rent collected at the rate of 20% per month commencing on the 
      first rent payment date after issuance of this order of the Commissioner 
      until all overpayments have been refunded.

      This order has the effect of reducing the rent to the amount in effect 
      immediately prior to the issuance of the instant major capital improvement 
      increase adjustment revoked herein, to which may then be added any 
      authorized rent increase unrelated to the major capital improvement.  The 
      resulting reduction in rent continues in effect notwithstanding that an 
      Article 78 proceeding for judicial review or any other legal action may 
      have been taken in connection with this order of the Commissioner unless 
      and until an order is issued to the contrary.

                                           JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner

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