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

      ------------------------------------X 
      IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
      APPEALS OF                             DOCKET NOS.:
                                          :  HF210013RT/HF210014RT/
      VARIOUS TENANTS OF 377 MONTGOMERY      HF210017RT/HF210018RT/
      STREET, BROOKLYN, NEW YORK             HF210030RT/HF210031RT/
                              PETITIONERS :  HF210032RT/HF210033RT/
      ------------------------------------X  HF210034RT/HF210035RT/     
                                             HF210036RT/HF210037RT/
                                             HF210039RT/HF210040RT/
                                             HF210041RT/HF210042RT/
                                             HF210055RT/HF210056RT/
                                             HF210057RT/HF210058RT/
                                             HF210059RT/HF210060RT/
                                             HF210061RT/HF210062RT/
                                             HF210063RT/HF210064RT/
                                             HF210065RT/HF210066RT/
                                             HF210067RT/HF210068RT/
                                             HF210069RT/HF210075RT/
                                             HF210076RT/HF210079RT/
                                             HF210098RT/HF210267RT

                                             RENT ADMINISTRATOR'S
                                             DOCKET NO.: FA2101110M


            ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW


      The above-named petitioner-tenants timely filed and/or refiled 
      administrative appeals against an order issued on April 29, 1993 by the 
      Rent Administrator (92-31 Union Hall Street, Jamaica, New York) concerning 
      the housing accommodations known as 377 Montgomery Street, Brooklyn, New 
      York, various apartments, wherein the Administrator granted major capital 
      improvement (MCI) rent increases for the stabilized apartments in the 
      subject premises based on an elevator upgrading and the installation of a 
      new intercom system and a new compactor.

      In their petitions the tenants contend, in substance, that the elevator was 
      not upgraded and that the elevator, compactor and intercom system are not 
      working properly.  Various tenants raise complaints regarding services 
      which are unrelated to the subject installations.

      In reply to the petitions the owner asserts, in substance, that it has 
      complied with all requirements to qualify for MCI rent increases; that the 
      intercom is in good working order; and that the tenants must file service 
      complaints regarding the compactor and the elevator since the owner 
      received governmental approvals for those installations.

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







          ADMIN. REVIEW DOCKET NO.: HF210013RT  etal.




      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.

      At the outset the record indicates that thirty of the petitioner-tenants in 
      occupancy of the following apartments were served by the Administrator with 
      notice of the instant application and failed to respond thereto: A2, A5, 
      A6, A7, A11, A14, A16, B2, B4, B5, B6, B7, B15, B16, C2, C5, C6, C15, C17, 
      D3, D6, D7, D10, D12, E1, E4, E15, F6, F7, F15.  Accordingly, pursuant to 
      Section 2529.6 of the Rent Stabilization Code, these tenants' allegations 
      may not be considered now when offered for the first time on administrative 
      appeal.

      With respect to the remaining six petitioner-tenants, residing in 
      apartments C7, D5, D11, E6, E12 and F11, the record reveals that these six 
      tenants were among the 14 tenants (out of a total of 98) who raised 
      objections to the quality or adequacy of the subject installations while 
      this proceeding was before the Rent Administrator.  The owner was served 
      with copies of several of the objections and, in response, submitted copies 
      of statements from each of the contractors indicating that the elevator was 
      maintained and serviced monthly; that the compactor was examined and found 
      to be in proper operating condition; and that the intercom system was 
      inspected, repairs were made thereto and said service was restored.  Copies 
      of the owner's response were served on several of the objecting tenants, 
      none of whom submitted a reply thereto.

      The record discloses that the owner substantiated its application in the 
      proceeding below by submitting to the Administrator documentation in 
      support thereof, including copies of proposals for the improvements, 
      contractors' certifications and cancelled checks, together with all 
      requisite governmental approvals.

      Furthermore, the owner submitted information indicating that the tenants' 
      objections were investigated and appropriate corrective action was taken 
      where necessary; and several tenants served with copies thereof failed to 
      rebut said information.  The tenants have not submitted any evidence, 
      either in the proceeding before the Administrator or on appeal, to support 
      any of their allegations and have not established that the rent increase 
      should be revoked.

      This order and opinion is issued without prejudice to the tenants' right to 
      file an appropriate application for a rent reduction based on a decrease in 
      building-wide or individual apartment services, if the facts so warrant.







          ADMIN. REVIEW DOCKET NO.: HF210013RT  etal.




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

      ISSUED:















                                                                    
                                           JOSEPH A. D'AGOSTA
                                           Deputy Commissioner




                                                    





    

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