Lambda abstraction algebras (LAAs) are designed to algebraize the unty
ped lambda calculus in the same way cylindric and polyadic algebras al
gebraize the first-order predicate logic. Like combinatory algebras th
ey can be defined by true identities and thus form a variety in the se
nse of universal algebra, but they differ from combinatory algebras in
several important respects. The most natural LAAs are obtained by coo
rdinatizing environment models of the lambda calculus. This gives rise
to two classes of LAAs of functions of finite arity: functional LAAs
(FLA) and point-relativized functional LAAs (RFA). It is shown that RF
A is a variety and is the smallest variety including FLA. Dimension-co
mplemented LAAs constitute the widest class of LAAs that can be repres
ented as an algebra of functions and are known to have a natural intri
nsic characterization. We prove that every dimension-complemented LAA
is isomorphic to RFA. This is the crucial step in showing that RFA is
a variety.