OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA

                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF                                           CB610259RT
                                                  RENT ADMINISTRATOR'S
                               PETITIONERS        DOCKET NO.: AC530239OM 


          On various dates, the above-named petitioner-tenants filed  
          petitions for administrative review (PARs) of an order issued on 
          November 27, 1987, by the Rent Administrator, concerning the 
          housing accommodations known as 1 Adrian Avenue, Bronx, New York, 
          Apartments 1G and 5A, wherein the Administrator granted the owner's 
          application for a rent increase which was based on the installation 
          of a major capital improvement (MCI).

          The Commissioner deems it appropriate to consolidate these 
          petitions for disposition since they pertain to the same order and 
          involve common issues of law and fact.

          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 these administrative appeals. 

          The former owner commenced the instant proceeding by initially 
          filing an application for a rent increase predicated on the 
          installation of a boiler/burner at a total cost of $40,000.00.

          In Docket No. AC530239OM, issued November 27, 1987, the Rent 
          Administrator issued the order here under review, approving the 
          owner's MCI application by authorizing a rent increase of $4.25 per 
          room, per month for all rent controlled and rent stabilized 
          apartments in the subject building.

          In her petition, the tenant of apartment 5A contends, in substance, 
          that the owner is attempting to collect a lump sum payment for the 
          MCI increase amounts covering the period prior to issuance of the 
          Rent Administrator's order, in violation of the order and Section 
          2522.4 (8) of the Rent Stabilization Code.

          In response to the petition, the owner contends that the tenant 

          failed to serve him and as such the petition is without merit; and 
          the tenant has conceded to the owner's request for this payment and 

          In her petition, the tenant of Apartment 1G contends, in substance, 
          that the MCI increase granted by this order will cause her rent to 
          exceed 1/3 of her monthly income.

          The owner did not respond to the tenant's petition, although 
          afforded an opportunity to do so.

          After a careful consideration of the entire record the Commissioner 
          is of the opinion that these petitions should be denied.  The 
          Commissioner notes that neither petitioner challenged the propriety 
          of the Administrator's order and only attacked the owner's methods 
          of collection and the owner's right to collect the rent increase.

          In accordance with the applicable provisions of the Rent 
          Stabilization Law and Code, collection of the rent increase granted 
          under Docket No. AC530239OM is limited to and shall not exceed 6% 
          of the rent charged on the February 1986 rent roll date in any 
          twelve month period with a similar limitation on the collection of 
          temporary arrears, with any overage collectible in succeeding years 
          subject to the same limitation on collectibility.

          As to the contention of the tenant of Apartment 5A, that the owner 
          requested payment on demand of full retroactive arrears, the 
          limitations of the order, as well as Section 2522.4(a)(8) of the 
          Code provide, in pertinent part, that in no event shall more
          than one 6% increase in the legal regulated rent be collected in 
          the same year for the permanent, prospective rent increase, and no 
          more than an additional 6% increase for the temporary retroactive 
          portion for such increase be collectible in the same year.  With 
          regard to the tenant's claim that the owner's demand exceeds the 6% 
          annual limitation, the Commissioner notes that the Rent 
          Administrator's order limits the collectibility of the increase to 
          6% per year for the permanent, prospective rent increase and no 
          more than an additional 6% increase for the temporary retroactive 
          portion of such rent increase.  If the owner is attempting to 
          collect more than the allowable amount, the tenant need not pay the 
          overage and the tenant's remedy is to file an overcharge complaint.
          This order and opinion is issued without prejudice to the tenant's 
          right to file a complaint of rent overcharge, if the facts so 

          As to the contention of the tenant of Apartment 1G, that the rent 
          increase granted by this order will cause her rent to exceed 1/3 of 
          her monthly income, a tenant who has a valid Senior Citizen Rent 
          Increase Exemption order (SCRIE) is exempted from that portion of 
          the increase which would cause the rent to exceed 1/3 of the 

          tenant's household monthly disposable income.  A tenant who may be 
          entitled to this benefit may contact the New York City Department 

          of the Aging by calling (212) 240-7000.

          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.


                                                  LULA M. ANDERSON  
                                                  Deputy Commissioner


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