DOCKET NUMBER: GH 110133-RT, et al.
                              STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

      APPEALS OF                             DOCKET NOS.:GH 110133-RT
                                          :              GH 110134-RT
      WILLIAM WATSON, GEORGE KIOURTSIS,                  GH 110135-RT
      KALLIOPI THEMISTOCLEOUS,                           GI 110024-RT
      ------------------------------------X  RENT ADMINISTRATOR'S
                                             DOCKET NO.: FB 110003-OM


      The above named petitioners-tenants timely filed petitions for 
      Administrative Review against an order issued on July 23, 1992 by the Rent 
      Administrator, Gertz Plaza, Jamaica, New York, concerning the housing 
      accommodations known as 30-41 41st Street, Astoria, New York, various 
      apartments, wherein the Rent Administrator determined that the owner was 
      entitled to a rent increase based on a major capital improvement (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 
      February of 1991.  In response to the owner's application, three tenants 
      filed answers contending, in substance, that they did not request or 
      approve this work; that the landlord upgraded the existing thermal windows 
      for his personal reasons; and that photographic evidence can be provided 
      upon request.

      The Rent Administrator's order, appealed herein, granted a major capital 
      improvement (MCI) rent increase based on the installation of new apartment 
      windows at a total approved cost of $8,740.00.

      In their petitions for administrative review, the tenants request a 
      reversal of the Administrator's order and contend, in substance, that on 
      December 15, 1989 the landlord told them that he was going to install new 
      thermal windows and asked them to sign an agreement to accept the new 
      windows and have the cost of same added to their leases; that the new 
      windows were not necessary as all the apartments had existing thermal 
      windows; and that they did not consent to the replacement of windows.

      After a careful consideration of the entire evidence of record, the 
      Commissioner is of the opinion that this proceeding should be remanded to 
      the Rent Administrator for further processing as provided hereinbelow.

      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 

          DOCKET NUMBER: GH 110133-RT, et al.

      structure; and replace an item whose useful life has expired.
      With respect to the tenants' contention regarding the landlord asking them 
      to sign an agreement to accept the new windows and have the cost of same 
      attached to their leases, the Commissioner notes that this issue has no 
      effect on the order as the tenants did not sign the agreement nor did the 
      owner actually charge the tenants any monies for the windows prior to the 
      Administrator's order being issued.

      As to the tenants contention regarding their consent, the Commissioner 
      further notes that tenants' consent to a major capital improvement rent 
      increase is not required.

      As to the tenants' allegation that their old windows were thermal windows, 
      the record discloses that the owner claimed on the application that the old 
      windows were sixty years old (pre-thermal windows) and that the issue of 
      age of the windows was not addressed by the Administrator.

      Accordingly, the Commissioner deems it appropriate to remand this 
      proceeding to the Rent Administrator for such further processing as may be 
      necessary in order to ascertain the actual age of the old windows.

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

      ORDERED, that these administrative appeals be, and the same hereby are 
      granted to the extent of remanding these proceedings to the Rent 
      Administrator for further processing in accordance with this order and 
      opinion.  The automatic stay of so much of the Rent Administrator's order 
      as directed a retroactive rent increase is hereby continued until a new 
      order is issued upon the remand.  However, the Administrator's 
      determination as to the prospective rent increase is not stayed and shall 
      remain in effect until the Administrator issues a new order upon the 


                                           JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner


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