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

      APPEALS OF                             DOCKET NOS.: 
                                          :  GK420032RT/GK420033RT/
        VARIOUS TENANTS OF                   GK420034RT/GK420036RT/
        MOTT STREET                          GK420037RT/GK420038RT/
        NEW YORK, NEW YORK  PETITIONERS   :  GK420039RT/GK420040RT
                                             RENT ADMINISTRATOR'S
                                             DOCKET NO.: FC430059OM


      On November 6, 1992 the above-named petitioner-tenants filed administrative 
      appeals against an order issued on October 6, 1992 by the Rent 
      Administrator (92-31 Union Hall Street, Jamaica, New York) concerning the 
      housing accommodations known as 200 Mott Street, New York, 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 new 
      apartment windows, a new roof, and new parapet walls.

      In these petitions the tenants object to the rent increase and contend, in 
      substance, that the improvements do not benefit tenants; that the owner was 
      previously granted maximum base rent (MBR) increase and therefore two rent 
      increases in one year was "too much"; and that the rent increase should not 
      be permanent.  One tenant contends that the apartment is in "very bad 

      In response the owner asserts, in substance, that the tenants benefit from 
      the improvements; that the rent increase is not unreasonable; that the 
      tenants have not received two increases in one year; and that the owner is 
      entitled to collect MBR increases.

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

      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 be generally 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.

      Based on the supporting documentation submitted by the owner herein, 
      including copies of contracts, contractors' certifications and cancelled 


          ADMIN. REVIEW DOCKET NO.: GK420032RT et al.

      checks, the Rent Administrator correctly computed the appropriate rent 
      increase based on the proven cost of the installations.  The tenants have 
      not established that the rent increase should be revoked.

      With respect to the tenants' contention that the owner was granted two rent 
      increases in one year, the Commissioner notes that an owner may collect an 
      MCI rent increase in addition to any other rent increases granted by the 

      The Commissioner is not unmindful of the possibility that rent increases 
      may prove burdensome to some tenants.  However, the Commissioner is 
      constrained by the applicable statutory and regulatory provisions to grant 
      such increases as are warranted.

      A tenant who has a valid Senior Citizen Rent Increase Exemption Order 
      (SCRIE) is exempted from that portion of the increase which would cause the 
      rent to exceed one-third of the tenant's household monthly disposable 
      income.  A tenant who may be entitled to this benefit may contact the New 
      York City Department of the Aging by calling (212) 240-7000.

      Regarding the contention that the MCI rent increase should not form a 
      permanent part of the rent structure, the Commissioner notes that the 
      permanent nature of the increase has been upheld by the Court of Appeals of 
      the State of New York in the Matter of Ansonia Residents Association v. 

      As to the contention of one tenant that the apartment is not in good 
      condition, this order and opinion is issued without prejudice to the 
      tenants' right to file an appropriate complaint for a decrease in rent 
      based on a decrease services, if the facts now so warrant.

      THEREFORE, in accordance 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
                                           Deputy Commissioner


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