OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA

                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

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

                   NAFTALI KRAUS,
                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO:  EA230021OM 


          The above named petitioner-tenant timely refiled a petition for 
          Administrative Review (PAR) against an order issued on July 31, 
          1987 by the Rent Administrator (Gertz Plaza) concerning the housing 
          accommodation known as 5315 15 Avenue, Brooklyn, New York, 
          apartment 2K, wherein the Administrator determined that the owner 
          was entitled to a rent increase based on various major capital 
          improvements (MCI's).

          The owner commenced this proceeding on Ma 1, 1986 by filing an 
          application for an MCI rent increase predicated on the cleaning and 
          lobby entrance door.

          The Order of the Rent Administrator, appealed herein, granted in 
          part, the owner's application and authorized rent increases for the 
          rent controlled and rent stabilized apartments based upon total 
          approved costs of $78,075.00.

          In this petition for administrative review, the tenant requests 
          modification of the Administrator's order and contends, in 
          substance, that the increase for windows does not apply to him 
          since said windows were already installed at the time of occupancy; 
          and that his lease does not mention anything about further 
          increases for major capital improvements that may have been applied 
          for.  The tenant did not submit any copies of the relevant lease.

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

          Firstly  the commissioner notes that the tenant does not allege 
          that the Administrator erred in finding that the installations 
          involved herein qualified as MCI's for which the owner is entitled 
          to an appropriated adjustment in rents.

          ADMIN. REVIEW DOCKET NO.:  BK220184RT

          A review of Division's records disclose that the window 
          installation was completed in December 1994 and that the 
          petitioner's vacancy lease was executed on March 1, 1985, 
          confirming the tenant's contention that he took occupancy after the 
          improvement was completed.  The record further discloses that the 
          prior tenant of Apt 2K (Joseph Sion) was a rent controlled tenant.

          The Commissioner notes that the petitioner is the first tenant to 
          occupy Apt 2K after it became subject to Rent Stabilization 
          jurisdiction. Since the free market rent charged to the first 
          stabilized tenant included any and all services the being provided, 
          the MCI rent increase provided for in the Rent Administrator's 
          order is not collectible from the first stabilized tenant or any 
          subsequent tenant of said apartment.

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

          ORDERED, that this petition be, and the same hereby i, granted; and 
          that the Rent Administrator's order be, and the same hereby is 
          modified to provide that the subject apartment is exempt from the 
          increase.  The Administrator's order is hereby affirmed in all 
          other respects.

          The owner is directed to refund to the tenant all excess rent 
          collected from the tenant arising as a result of this order and 
          opinion within 30 days from the issuance date indicated herein 



                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner


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