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.: BI130148RT
                                              :  
            STEPHEN PENN                         RENT ADMINISTRATOR'S
                                                 DOCKET NO.: AD110121OM
                                PETITIONER    : 
          ------------------------------------X                             

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

          On September 8, 1987, the above named petitioner-tenant timely 
          filed a petition for administrative review (PAR) against an order 
          issued on August 12, 1987, by a Rent Administrator (Gertz Plaza) 
          concerning the housing accommodations known as 34-44 77th Street, 
          Jackson Heights, New York, various apartments, wherein the Rent 
          Administrator determined that the owner was entitled to a rent 
          increase based on the installation of a major captial improvement 
          (MCI).

          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 April 17, 1986, by initially 
          filing an application for a rent increase based on the installation 
          of an intercom at a total cost of $6,300.00.

          On August 12, 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 rent increases for rent controlled and 
          rent stabilized tenants.

          In this petition, the tenant (apartment 4G) iterates the same 
          objections made during the proceeding before the Administrator 
          contending, in substance, that no new intercom unit was installed 
          in his apartment; that the old intercom unit worked satisfactorily; 
          and that a replacement unit was not necessary.

          In response to the tenant's petition, the owner contends, in 
          substance, that a new intercom had been installed in the subject 
          apartment.  In support of this contention, the owner submits a 
          statement dated September 16, 1987 signed by the tenant and 
          superintendent indicating that the superintendent had installed an 
          intercom in the subject apartment.

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








          ADMIN. REVIEW DOCKET NO.: BI130148RT




          The evidence of record in the instant case indicates that the owner 
          hired Frank Brandt Bell and Intercom Corp. to install an intercom 
          system at the subject building at a cost of $6,300.00.  Pursuant to 
          the contract submitted by the owner, said work included mounting 
          new intercom boxes in all of the apartments.

          However, the evidence submitted by the owner on appeal indicates 
          that the superintendent, rather than the contractor, installed the 
          intercom in the subject apartment contrary to the terms of the 
          contract submitted to and approved by the Administrator.  
          Accordingly, the Commissioner finds that the subject apartment (4G) 
          should be permanently excluded from the MCI rent increase for the 
          intercom isntallation.  The owner is hereby directed to refund to 
          the tenant all excess rent collected as a result of this order 
          within thirty days from the date of issuance hereof.

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

          ORDERED, that this petition be, and the same hereby is, granted, 
          and that the Administrator's order be, and the same hereby is, 
          modified in accordance with this order and opinion.

          ISSUED:







                                                                        
                                               JOSEPH A. D'AGOSTA
                                               Deputy Commissioner




                                                    
           
    

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