STATE OF NEW YORK
                       DIVISION OF HOUSING AN COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK, 11433

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          IN THE MATTER OF THE ADMINISTRATIVE      ADMINISTRATIVE REVIEW
          APPEAL OF                                DOCKET NO.: DJ130280RT

          VARIOUS TENANTS of 21-80 38th Street,
          Astoria, New York                        RENT ADMINISTRATOR'S
                                   PETITIONER      DOCKET NO.: BD130069OM
          -----------------------------------X

             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          The petitioner-tenants  timely  filed  an  administrative  appeal
          against an order issued on July 19, 1989 by the Rent Administrator 
          (92-31 Union Hall Street, Jamaica, New York) concerning the housing 
          accommodations known as 21-80 38th  Street,  Astoria,  New  York,
          various apartments, wherein the Administrator granted major capital 
          improvement (MCI) rent increases for the controlled and stabilized 
          apartments in the subject premises based on the  installation  of
          apartment  and  hallway  windows,   pointing,   steam   cleaning,
          waterproofing and lintel replacement at the premises.

          The owner commenced this  proceeding  below  by  filing  its  MCI
          application in April of 1987. In support of its application,  the
          owner submitted copies of the contracts,  invoices,  contractors'
          statements, diagram and cancelled checks.

          On appeal, the petitioner-tenants state, in substance,  that  all
          repairs and replacements referred to in the MCI order  were  made
          only to cure violations on the building and to support the owner's 
          plans to convert the building to cooperative ownership.

          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that  this  administrative  appeal
          should be denied.

          Rent increases for major capital improvements are  authorized  by
          Section 2202.4 of the Rent and Eviction Regulations for the  rent
          controlled apartments and Section 2522.4 of the Rent Stabilization 
          Code for the rent stabilized apartments. Under rent  control,  an
          increase is warranted where there has been since July 1, 1970  an
          MCI required for the operation, preservation, and 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 













          ADMINISTRATIVE REVIEW DOCKET NO.: DJ130280RT

          whose useful has expired.

          It  is  the  established  position  of  the  Division  that   the
          installation of apartment and hallway  windows,  pointing,  steam
          cleaning, waterproofing and lintel replacement, as in the instant 
          case, qualifies as MCI. The fact that these installations were made 
          to eliminate a Housing Code violation or as part of a cooperative 
          conversion process does not bar an owner from receiving an MCI rent 
          increase otherwise warranted.

          The Commissioner notes that Division records indicate that no rent 
          reduction order had been issued against the subject premises based 
          on the owner's failure to maintain services  of  a  building-wide
          nature nor was any such complaint pending at the time  the  order
          appealed herein was issued. Additionally, no current  immediately
          hazardous conditions exist at the subject premises according to the 
          records of the New York City Department of Housing Preservation and 
          Development.

          The evidence of record in the instant case indicates that the owner 
          correctly complied with the application procedures for an MCI and 
          that the Rent Administrator properly computed the appropriate rent 
          increase. On the other hand, the tenants have not  submitted  any
          evidence to prove that the increases should be revoked.

          On the basis of the entire evidence of record, it is found that the 
          Administrator's order is correct and should be affirmed.

          This order and opinion is issued without prejudice to the tenants' 
          right to file an application for a rent reduction  based  on  any
          current diminutions in services, if the facts so warrant.

          THEREFORE, in accordance with the applicable provisions of the Rent 
          Stabilization Law and Code, the Rent and Eviction Regulations for 
          the City of New York, and Operational Bulletin 84-1, it is

          ORDERED, that this administrative appeal be, and the same  hereby
          is, denied; and that the Administrator's order be, and  the  same
          hereby is, affirmed.

          ISSUED:




                                             -------------------------------
                                              Joseph A. D'Agosta
                                              Deputy Commissioner