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

      APPEAL OF                              DOCKET NO. ARL10954-K

                                          :  DISTRICT RENT OFFICE
           Deana Realty,                     DOCKET NO. K3703099-R
                                             TENANT: Hyman Goldstein          
                            PETITIONER    : 


      On November 5, 1992 this Order and Opinion was originally issued, but 
      was inadvertently mailed to the owner at an incorrect address.  This 
      order is the same as that issued on November 5, 1992 and is being 
      reissued solely to serve the owner with the order at the proper address.

      On June 13, 1986, the above-named petitioner-owner filed a Petition for 
      Administrative Review against an order issued on June 11, 1986, by the 
      Rent Administrator concerning the housing accommodations known as       
      3033 Brighton 14th Street, Brooklyn, New York, Apartment No. B-7,
      wherein the Administrator established the stabilized rent and directed 
      the owner to refund $712.84 including interest from April 1, 1984.

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

      The tenant commenced this proceeding on March 31, 1984, by the filing of 
      a complaint of rent overcharge with the New York City Conciliation and 
      Appeals Board, one of the predecessor agencies to the DHCR.   The tenant 
      took occupancy pursuant to a lease commencing April 1, 1979 and expiring 
      on March 31, 1981, at a monthly rental of $250.00.

      The owner submitted a rental history from the base date.

      On the chart attached to and made a part of the order, the Administrator 
      established the stabilized rent.

      In its petition, the owner contends that the Administrator erred in its 
      rent calculations by failing to credit the owner with a rent increase 
      based on the cost of a Major Capital Improvement (MCI), i.e., the re- 
      tiling of all of the showers throughout the building.

      The tenant's answer opposing the petition asks that the order of the 
      Rent Administrator be affirmed, and that the petition be denied.

      Division records confirm that no application for rent increase for major 
      capital improvement was filed by the owner prior to the issuance of the 


      instant Rent Administrator's order.

      The Commissioner finds that the owner cannot be granted an MCI increase 
      where the application for said increase consists solely of the owner's 
      PAR against an order that found that an overcharge had been collected.  
      The Commissioner, therefore, finds that the owner has asserted no basis 
      upon which the revocation or modification of the appealed order might be 

      The owner is directed to reflect the findings and determinations made in 
      this order on all future registration statements, including those for 
      the current year if not already filed, citing this order as the basis 
      for the change.  Registration statements already on file, however, 
      should not be amended to reflect the findings and determinations made in 
      this order.  The owner is further directed to adjust subsequent rents to 
      an amount no greater than that determined by this order plus any lawful 

      The owner is directed to refund the overcharge to the tenant 
      immediately.  Should the owner fail to do so, upon the expiration of the 
      period in which the owner may institute a proceeding pursuant to Article 
      Seventy-Eight of the Civil Practice Law and Rules, not in excess of 
      twenty per cent thereof per month of the amount owed by the owner may be 
      offset against any rent thereafter due the owner.  The tenant may add to 
      the overcharge interest at the rate payable on a judgment pursuant to 
      Section 5004 of the Civil Practice Law and Rules rom the issuance date 
      of the Rent Administrator's order to the issuance date of the 
      Commissioner's order.

      THEREFORE, pursuant to the Rent Stabilization Law and Code, it is

      ORDERED, that this Petition be, and the same hereby is, denied.


                                      JOSEPH A. D'AGOSTA
                                      Deputy Commissioner

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