BD 210151 RO, et al

                                  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
          APPEAL OF                            DOCKET NOS.: BD 210151 RO
                                                           BD 210456 RO
               J.R.D. Management Corp.,                    
                                               DISTRICT RENT 
                                               ADMINISTRATOR'S
                                               DOCKET NO.: TA 011864
           
                                   PETITIONER               
          -----------------------------------X

            ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW

          On April 24, 1987 the above-named  owner  filed  a  Petition  for
          Administrative Review of an order issued on April 15, 1987  by  a
          District   Rent    Administrator,    concerning    the    housing
          accommodations  known  as  Apartment  4R,  2601  Glenwood   Road,
          Brooklyn, New  York,  wherein  the  District  Rent  Administrator
          determined that the owner  had  overcharged  the  tenant  in  the
          amount of $91.22.

          On April 29, 1987, the above-named owner filed  another  copy  of
          the Petition for Administrative Review, which was  given  another
          docket number.

          The Commissioner has consolidated the  above-mentioned  petitions
          for review herein.

          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 the administrative appeal.

          This proceeding was  commenced  by  the  tenant's  filing  of  an
          application with the New York City Conciliation and Appeals Board 
          (CAB), the  agency  formerly  charged  with  enforcing  the  Rent
          Stabilization Law, in which she alleged that the initial rent for 
          the subject apartment exceeded the fair market rent.

          In its answer to the tenant's complaint, the owner, in substance, 
          asserted, that the tenant had not been  overcharged.   The  owner
          enclosed copies of  leases  beginning  with  that  of  the  first
          decontrolled tenant (August, 1978), through the subject  tenant's
          most recent lease.

          In Order Number 29,905, issued April 15 1987, the  District  Rent
          Administrator dismissed the tenant's fair market rent appeal  but
          determined that the tenant had been overcharged.

          In its petition, the owner, by its agent, contends, in  substance
          and pertinent  part,  that  a  Major  Capital  Improvement  (MCI)
          increase  was omitted from the Administrator's calculations,  and






          BD 210151 RO, et al
          that it was entitled to collect this increase, authorized  by  an
          order issued on July 14,  1983  under  Docket  No.  OM-3180  (CAB
          Opinion No. 26,717) and effective January 15, 1982.

          After careful consideration the Commissioner is  of  the  opinion
          that these Petitions for Administrative Review should be denied.

          Section 41C of the former Rent Stabilization Code provided for an 
          increase in the stabilized rent for units which became stabilized 
          after July 1, 1974 where there had  been  a  building-wide  Major
          Capital Improvement after the date on  which  such  units  became
          subject to the Rent Stabilization Law.

          The record reveals that the subject apartment  was  removed  from
          rent control in 1978.  Accordingly, the MCI  order,  Opinion  No.
          26,717 issued July 14, 1983, granting a rent increase based  upon
          Major  Capital  Improvements  completed  October  1977,  was  not
          applicable  to  the  subject  apartment,  and   it   so   stated.
          Therefore,  the  Commissioner  is  of  the   opinion   that   the
          Administrator's order was  correct  when  issued  and  should  be
          affirmed.

          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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