DOCKET NO.:  DB 730090-RO
                               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   :   
      APPEAL OF                                 ADMINISTRATIVE REVIEW
                                            :   DOCKET NO. DB 730090-RO
            HARDING & THORNTON, INC.,           DRO DOCKET NO. CL 7100930-M    
                                           :  
                             PETITIONER        
      --------------------------------------X   
                                                

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

      On March 9, 1987, the above named petitioner-Harding & Thornton, Inc 
      timely refiled a Petition for Administrative Review against an order 
      issued on January 13, 1989, by the District Rent Administrator, Hempstead 
      Office concerning housing accommodations known as various tenants at 565 
      Fulton Avenue, Hempstead, NY wherein the District Rent Administrator 
      determined that the installations described in the owner's application do 
      not qualify as Major Capital Improvements.

      The issues in this appeal is whether the installation of new vinyl 
      flooring in lobby and public hallways and renovation of front entrance is 
      a major capital improvement.

      The applicable section of the Tenant Protection Regulation is Section 
      2502.4.

      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 administrative appeal.

      The owner (Harding & Thornton, Inc.) commenced this proceeding by filing 
      an application for rent increase based on expenditures of $7,810.00 for 
      retiling the lobby and public hallways; and repairing sheet rock wall in 
      lobby; and replacing window sills in front entrance.

      In Order Number CL 710093-OM the District Rent Administrator determined 
      that the tile work and front entrance renovation were maintenance and 
      repair and therefore not eligible for MCI increase.

      In this petition, the owner contends that the Rent Administrator's Order 
      is incorrect and should be modified because, "The installation of vinyl 
      floors in the lobby and hallways represent a substantial improvement to 
      the building.  The vinyl floors installed  are of superior quality to the 
      old floors."

      In answer to this petition, various tenant contend that the order should 
      be upheld because, "The installation of vinyl floors are purely cosmetic, 
      intended to attract prospective buyers to the building being co-op."









          DOCKET NO.:  DB 730090-RO

      The Commissioner is of the opinion that this petition should be denied.

      Replacement of lobby and public hallways floor tile, and replacement of 
      window sills in entranceway are maintenance items.

      Said work did not constitute structural change but rather a change in 
      cosmetic flooring covering and entranceway window sill treatment.

      THEREFORE, in accordance with the Tenant Protection Regulations it is

      ORDERED, that this petition be, and the same hereby is, denied and the 
      District Rent Administrator's order be, and the same hereby is affirmed.

      ISSUED:


                                                                             
                                                     JOSEPH A. D'AGOSTA
                                                 Acting Deputy Commissioner