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

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

              Geraldine & Isidor Averbach,
                                                  RENT ADMINISTRATOR         
                               PETITIONER         DOCKET NO: QS000883OM


          On August 7, 1987 the above named petitioner-tenant timely filed a 
          petition for administrative review against an order issued on July 
          13, 1987 by a Rent Administrator 92-31 Union Hall Street, Jamaica, 
          NY concerning the housing accommodations known as 178-10 Wexford 
          Terrace, Jamaica, NY apartment 7C wherein the rent administrator 
          determined that the owner was entitled to a rent increase based on 
          the installation of a Major Capital Improvement.

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

          The owner commenced this proceeding on July 14, 1986, by initially 
          filing an application for a rent increase based on the installation 
          of new aluminum thermal windows at a total cost of $193,380.00.

          The tenant objected to the owner's application alleging in 
          substance that the owner should be responsible for the cost of 
          improvements, since it will receive tax benefits.

          On July 13, 1987, the Rent Administrator issued the order here 
          under review finding, that the installation qualified as an MCI, 
          determining that the application complied with the relevant laws 
          and regulations based upon the supporting documentation submitted 
          by the owner, and allowing appropriate rent increases for rent 
          controlled and rent stabilized tenants.

          In this petition, the tenant contends in substance that, he had 
          submitted an application for rent reduction and according to this 
          agency's administrative rulings, an MCI is uncollectible while a 
          rent reduction order is in effect.

          Adm. Rev. Docket No. BH130050RT

          In response to the tenant's petition the owner contends, in 
          substance, that the conditions complained of were addressed and the 
          owner had filed for restoration of the rent.

          After careful consideration of the entire record, the Commissioner 
          is of the opinion that this petition should be denied.

          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. 

          The evidence of record in the instant case indicates that 
          petitioner-tenant filed an individual service complaint with this 
          agency on January 1, 1987.  A rent reduction order was granted on 
          September 2, 1987, approximately two months after the order 
          appealed herein had been issued.

          The Commissioner finds that the Administrator acted properly in 
          granting the MCI as the rent reduction order was not in effect at 
          the time.  However as provided in said rent reduction order the 
          increase provided for herein was not collectible for the period in 
          which the individual apartment's reduction was in affect.

          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          it is

          ORDERED, that this petition be and the same hereby is, denied; and 
          that the administrator's be, and the same hereby is, affirmed.


                                                    JOSEPH A. D'AGOSTA
                                                    Deputy Commissioner


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