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

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF                                           HF430090RT

                    Doris Gaskell Strakosch &
                    Irving Scheider,
                                                  RENT ADMINISTRATOR'S
                               PETITIONERS        DOCKET NO: FG430040RK


          The above-named petitioner-tenants timely refiled petitions for 
          administrative Review (PARS) against an order issued under Docket 
          No. FG430040RK on March 16, 1993, by the Rent Administrator (Gertz 
          Plaza) concerning the housing accommodations known as 26 East 63rd 
          Street, New York, New York, various apartments.

          The Commissioner deems it appropriate to consolidate these 
          petitions for disposition since they pertain to the same order and 
          involve common issues of law and fact.

          On May 24, 1991, the Rent Administrator issued an order (Docket No. 
          DF430213OM) denying the owner's application for a major capital 
          improvement rent increase for elevator upgrading based on the 
          owner's failure to adequately respond to various notices.

          By letter dated June 26, 1991, the owner, a condominium 
          corporation, requested reconsideration of the Administrator's order 
          issued on May 24, 1991. On August 1, 1991, the Administrator 
          reopened the said proceeding and afforded  the tenants an 
          opportunity to comment thereupon. In response to the reopened 
          proceeding, several tenants filed answers, contending, in 
          substance, that with the conversion of manned to self service 
          elevators, there is a loss of security; and that the saving in 
          labor costs should be passed on to the tenants since the positions 
          of seven elevator operators were eliminated.

          On March 16, 1993, the Rent Administrator issued an order  (Docket 
          No. FG430040RK) revoking the denial order issued under Docket No. 
          DF430213OM and granted retroactive and prospective rent increases 
          for the controlled and stabilized units based on the determination 
          that the installation constitutes an MCI. Said order contains a 

          Adm. Rev. Docket No. HF430091RT et. al.

          notation advising the owner that to reduce staffing or any 
          services, "prior approval of the Division is required".

          In their petitions for Administrative Review, the tenants request 
          reversal of the Administrator's order and contend, in substance, 
          that the order of the Rent Administrator is arbitrary and 
          capricious and erroneous as a matter of law; and that conversion 
          from manned to automatic self service elevators is a decrease in 
          required services under the rent Stabilization Law and Code and the 
          Rent and Eviction Regulation.

          A review of the Division's records reveal that 12 other tenants of 
          the subject premises filed individual PARs against the Rent 
          Administrator's order appealed herein. Said PARs, which raised 
          similar issues of law and fact as those raised in the instant PARs, 
          were consolidated and on June 25, 1993, the Commissioner issued an 
          order and opinion finding that the MCI rent increase granted under 
          Docket No. FG430040RK should be suspended, retroactive to the 
          effective dates stated in said order, and that the proceeding 
          should be remanded to the Administrator to be held in abeyance.

          The Commissioner notes that the remand proceeding, which was 
          assigned Docket No. HF430026RP, is still pending before the 

          In view of the foregoing, the Commissioner is of the opinion that 
          this matter should be remanded to the Administrator for 
          consolidation with Docket Nos. HC430197RT et. al. for which the 
          remand order was issued on June 25, 1993, and which proceeding is 
          pending before the administrator under Docket No. HF430026RP.

          THEREFORE,      in accordance with the Rent Stabilization Law and 
          Code, and the Rent and Eviction Regulations for New York City, it 

          ORDERED, that these petition be, and the same hereby are, granted 
          to the extent of remanding this proceeding to the Rent 
          Administrator for further processing in accordance with this order 
          and opinion; and that the major capita improvement rent increase 
          granted under Docket No. FG430040RK be and the same hereby is 
          suspended, from the inception thereof; and it is further

          ORDERED, that the owner refund to the tenants any excess rent 
          collected as a result of this order within 30 days from the date of 
          issuance thereof.

                                                       JOSEPH A. D'AGOSTA
                                                       Deputy Commissioner



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