BK 410142-RT;  BK 420203-RT
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEALS OF                              DOCKET NOS.:   
                                                  BK 410142-RT
                                                  BK 420203-RT 
                  PAULA FARBER and                
                  THERESA MC FARLAND,             RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                   PETITIONER     BB 420020-OR      


          On October 29, 1987 and November 6, 1987, the above-named peti- 
          tioner-tenants filed petitions for administrative review of orders 
          issued on October 9, 1987, by the Rent Administrator concerning the 
          housing accommodation known as 257 Central Park West, New York, 
          New York, Various Apartments wherein the Administrator determined 
          that the rents for the subject rent controlled apartments should be 
          restored because the ten year tax abatement period had expired.

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

          The record reveals that on February 3, 1987, the owner filed an 
          application for an increase in the maximum rent of the subject 
          apartments based on the expiration in June 1986 of the J-51 Tax 
          Abatement that the owner had been granted for major capital 
          improvements commenced in June 1974.  In exchange for the tax 
          abatement, the subject apartments became rent controlled and upon 
          expiration of the tax abatement, the owner sought to increase the 

          Several tenants answered the application, objecting to the owner's 
          authority to collect such an increase and to the method of compu- 

          The Administrator's order granted the applications based on a 
          finding that the ten year tax abatement period that had resulted in 
          rent reductions ordered on June 20, 1975 had expired.

          BK 410142-RT;  BK 420203-RT

          In the petitions for administrative review, the tenants assert, in 
          substance, that the orders are unauthorized and should be revoked.

          After careful consideration of the evidence of record, the Commis- 
          sioner is of the opinion that the petitions should be denied.

          Pursuant to Administrator's Interpretation No. 16:  When a landlord 
          receives tax abatement and tax exemption relief as provided in 
          Section J-51 of the Administrative Code, any rent increase which 
          would otherwise be allowable for the major capital improvements 
          must be offset by a portion of the tax abatement allowance.  When 
          the tax abatement period expires, Interpretation No. 16 provides 
          that the landlord is entitled to a restoration of the maximum rent 
          which would reflect the full rental value of the improvements.

          The record reveals that the maximum rents for the subject housing 
          accommodations were decreased pursuant to orders issued on June 20, 
          1975 based on the tax abatement the landlord had been granted for 
          the improvements.  Upon expiration of the abatement, the landlord 
          was entitled to restoration of the rents which the Administrator so 

          THEREFORE, pursuant to the New York City Rent Control Law and the 
          Rent and Eviction Regulations for New York City, it is,

          ORDERED, that these petitions be, and the same hereby are, denied, 
          and the Rent Administrator's order be, and the same hereby is, 


                                                JOSEPH A. D'AGOSTA
                                                Acting Deputy Commissioner

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