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

          APPEALS OF                             DOCKET NOS.:
                                              :  GK210085RT/GK230110RT/
          VARIOUS TENANTS OF 9935 THIRD AVE.     GL230002RT/GL230013RT/
          BROOKLYN, NY                           GL230028RT/GL230040RT/
                                  PETITIONERS :  GL230041RT/GL230050RT/
          ------------------------------------X  GL230055RT/GL230074RT       
                                                 RENT ADMINISTRATOR'S 
                                                 DOCKET NO.: EK230026OM

                                ADMINISTRATIVE REVIEW
          The above named petitioner-tenants timely filed administrative 
          appeals against an order issued on November 6, 1992 by the Rent 
          Administrator (Gertz Plaza, Jamaica, New York) concerning the 
          housing accommodations known as 9935 Third Avenue, Brooklyn, New 
          York, various apartments, wherein the Administrator granted the 
          owner's major capital improvement (MCI) application.  The 
          Administrator authorized a rent increase adjustment for wiring.

          The Commissioner has reviewed all the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issues raised by the administrative appeals.

          Since these appeals pertain to the same building and involve common 
          issues, they have been consolidated for a disposition herein.

          The owner commenced the proceeding below by filing its MCI 
          application in November 1990.

          In response to the application, various tenants filed answers in 
          opposition to the requested rent increase alleging that the 
          rewiring work was completed in the kitchen only, and that the work 
          completed fails to meet professional standards.    

          The owner was notified of these objections, in response to which 
          four tenants alleged specific defects with the work performed.  The 
          owner submitted a statement from a licensed electrician to the 
          effect that the wiring in apartments D2, D4, E1 and F4 was tested 
          and found to be in proper condition. 

          On November 6, 1992, the Rent Administrator issued an order 
          granting the owner's application increasing the rents for both the 
          rent controlled and rent stabilized tenants at the subject 
          building.  Said order contains the notation that tenants failed to 
          reply to a subsequent notice (relating to the owner's response) 
          mailed on September 22, 1992.


          ADMIN. REVIEW DOCKET NO.: GK210085RT,  et al.

          In their administrative appeals various tenants allege in substance 
          that notification of a pending rent increase was not given prior to 
          the issuance of the Administrator's order; and that they did not 
          receive the notice dated September 22, 1992 referred to in the 
          Administrator's order.  The tenant of apartment B4 alleges that an 
          insufficient number of outlets were installed and the tenants of 
          apartment 4E and 5F state that the installation was completed prior 
          to the issuance of their lease agreements and there was no lease 
          clause signed to indicate an increase in rent as a result of the 
          rewiring work.

          In response to the tenants petitions, the owner stated, in 
          substance, that the Division properly notified all tenants of the 
          pendency of the MCI application and that the tenant of apartment 5F 
          untimely filed a petition for administrative review, and that the 
          tenants in apartments C1, C5 and E5 failed to respond to the 
          application during the initial filing.    

          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that these administrative appeals 
          should be granted in part and the Administrator's order modified in 
          accordance with this order and opinion.

          Rent increases for major capital improvements are authorized by 
          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 
          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.

          At the outset, the Commissioner notes that for an electrical 
          upgrading to qualify as an MCI under current procedures, the job 
          requires the installation of new electric service to the building, 
          new copper riser and feeders extending from the property box in the 
          basement to every housing accommodation of sufficient capacity at 
          the apartment panel to accommodate the installation of in the 
          living room and bedrooms of air-conditioner circuits and outlets as 
          well as the installation of two duplex outlets in the kitchen to 
          accommodate heavy duty appliances.  In addition, the tenants must 
          be given the option of having air-conditioning outlets installed in 
          their apartments at cost to the tenants.  The record herein 
          discloses that the owner substantiated its MCI application for the 
          rewiring work in the proceeding below by submitting to the 
          Administrator copies of the contract, cancelled checks, the 
          contractor's certification, and the Certificates of Electrical 
          Inspection issued by the NYC Bureau of Electrical Control for the 
          work in question, the governmental agency having jurisdiction for 

          ADMIN. REVIEW DOCKET NO.: GK210085RT,  et al.

          the verification and the approval thereof.  However, the record 
          does not disclose that the tenants were given the option of having 
          air-conditioner outlets installed in their apartments.  Therefore, 
          the Administrator's order should be amended to add ATTACHMENT TO 
          MCI ORDER FOR REWIRING, annexed herein.

          With respect to the tenants' contention that they did not receive 
          the notice dated September 22, 1992, referred to in the 
          Administrator's order, the Commissioner notes that this follow-up 
          notice was only mailed to the four tenants who indicated defects 
          with the wiring in their apartments (as distinguished from those 
          tenants who alleged that outlets were not installed in every room).

          Regarding the contention of tenants that they took occupancy after 
          the installation was completed, the Commissioner notes that in 
          accordance with the applicable provisions of the Rent Stabilization 
          Code, as to any tenant who may have moved into the subject premises 
          after the instant application was filed, the increase provided for 
          herein shall not be collectible until the expiration of the lease 
          term in effect at the time of issuance of the Administrator's 
          order, and then on a prospective basis only, unless, said tenant's 
          vacancy lease and any renewal thereof contained provision that the 
          rent may be increased pursuant to an order issued by the DHCR; that 
          the instant application is pending before the DHCR, including the 
          docket number and basis for the requested increase; and that if 
          granted, the increase may be collectible during the lease term.

          This order and opinion is issued without prejudice to the tenants 
          or any one of them, filing a complaint with the Division based on 
          a reduction of services or rent overcharge, if the facts so 

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

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

          ORDERED, these the administrative appeals be and the same hereby 
          are granted in part; that the Administrator's order be, and the 
          same hereby is modified in accordance with this order and opinion; 
          and that as so modified, said order is hereby affirmed.


                                               JOSEPH A. D'AGOSTA
                                               Deputy Commissioner


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