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 NO.:BG 110269-RT
                                         :  
                                            RENT ADMINISTRATOR'S
         CHARLES DEMPSEY                    DOCKET NO.: QS 000695-OM
                           PETITIONER    : 
     ------------------------------------X                             

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On  July  29,  1987,  the  above-named  tenant  filed   a   petition   for
     administrative review of an order issued on June 26, 1987  by  a  District
     Rent Administrator concerning the housing accommodations known  as  144-44
     41st Avenue, Flushing, New York, Apartment 6N.

     The  administrator  granted  the  owner's   application   based   on   the
     installation of adequate wiring, air conditioner outlets and  an  intercom
     system.

     The Commissioner has reviewed all the  evidence  in  the  record  and  has
     carefully considered that portion of the record  relevant  to  the  issues
     raised by the petition for review.

     On appeal, the tenant asserts, in pertinent part, that the  permanent  and
     retroactive major capital improvement  (MCI)  rent  increases  when  taken
     together, exceed the amount requested by the  owner  in  his  application.
     The tenant also confirms the owner's claim  of  the  improved  wiring  and
     additional electrical outlet installation, and  asserts  various  services
     complaints unrelated to the MCI's.

     After  careful  consideration  of  the  entire  evidence  of  record,  the
     Commissioner is of the opinion that the administrative  appeal  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 owner  is  permitted  a  permanent  prospective  six  percent  maximum
     increase and an additional six percent maximum increase for the  temporary
     retroactive portion of the  MCI  rent  adjustment  (Supplement  No.  1  to
     Operational Bulletin 84-4).

     The  record  reveals  that  the  administrator  properly   applied   these
     principles to  the  owner's  application.   The  installations  for  which
     increases were allowed fit the above definition and their costs were 







          DOCKET NUMBER: BG 110269-RT
     substantiated by the owner.  The Administrator  properly  found  that  the
     rewiring,   electrical  outlets  and  intercom  system  qualified  as  MCI
     installations and appropriate rent increases were granted  which  did  not
     exceed the lawful limits.

     This order and opinion is issued without prejudice to  the  right  of  the
     tenant to file a services reduction complaint if the facts so warrant.

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

     ORDERED, that this Administrative appeal  be,  and  the  same  hereby  is,
     denied, and that the order of the District Rent Administrator be, and  the
     same hereby is, affirmed.

     ISSUED:













                                                                   
                                          JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner