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

      APPEALS OF                             DOCKET NOS.:GG 210161-RT
                                          :              GG 210162-RT
        VARIOUS TENANTS OF 181 INDIA                     GG 210163-RT
        STREET, BROOKLYN, NEW YORK                       GG 210164-RT
                            PETITIONERS   :              GG 210165-RT
      ------------------------------------X              GG 210224-RT

                                             RENT ADMINISTRATOR'S
                                             DOCKET NO.: EF 210075-OM


      Various tenants timely filed petitions for Administrative Review against an 
      order issued on June 22, 1992 by the Rent Administrator, Gertz Plaza, 
      Jamaica, New York, concerning the housing accommodations known as 181 India 
      Street, Brooklyn, New York, Various Apartments wherein the Rent 
      Administrator determined that the owner was entitled to a rent increase 
      based on major capital improvements (MCI).  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.

      The owner commenced the proceeding below by filing its MCI application in 
      June of 1990.  In response to the owner's application, several tenants 
      filed answers contending, in substance, that the owner is not entitled to 
      the Rent increase because there is a general lack of building maintenance.

      The Rent Administrator's order, appealed herein, granted a major capital 
      improvement (MCI) rent increase based on the installation of new apartment 
      windows, aluminum siding and entrance/basement doors at a total approved 
      cost of $20,000.00.

      On appeal, the petitioners-tenants contend, in substance, that rain was 
      seeping through windows and walls so repairs were necessary maintenance to 
      prevent the building from falling apart; and that it is the landlord's duty 
      to make repairs to keep the building habitable.  The tenants further allege 
      that the windows freeze and cannot be opened in the winter.

      After a careful consideration of the entire evidence of record, the 
      Commissioner is of the opinion that these Administrative Appeals should be 

      Rent increases for major capital improvements are authorized by Section 
      2522.4 of the Rent Stabilization Code for rent stabilized apartments.  
      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.  


          DOCKET NUMBER: GG 210161-RT et al.

      It is the opinion of the Commissioner that the type of work involved herein 
      meets the definitional requirements for a major capital improvement.  In 
      addition, the tenants concede tht the subject premise was in such a 
      condition that the weatherization of the premises was required for the 
      continued operation, preservation and maintenance of the structure.
      The record in the instant case discloses that no service complaints were 
      pending nor were there any orders of rent reduction of a building-wide 
      nature in effect as of the issuance date of the Administrator's order 
      appealed herein.

      The record further discloses that the tenants did not raise any objections 
      relevant to the installation while the proceeding was before the 

      In view of the foregoing, the Commissioner, is of the opinion that the 
      Administrator properly determined the owner's application for a rent 
      increase based on major capital improvements.

      This determination is without prejudice to the rights of the tenants filing 
      appropriate complaints with the Division alleging that the owner is not 
      maintaining all required services, if the facts so warrant.

      THEREFORE, in accordance with the Rent Stabilization Law and Code, it is

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


                                           JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner


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