Docket No.:CB 220312-RO


                                    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. CB 220312-RO

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET    
                                                  NO. BH 220088-OI
          P.S.M. Building Company                                            
           
                                               
           
                                   PETITIONER
          ------------------------------------

          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


              On February 1, 1988, the above-named landlord filed a petition 
          for administrative review of an order issued on January 21, 1988 by 
          a District Rent Administrator concerning the housing accommodation 
          known as Apartment 10, 395 East 16th Street, Brooklyn, New York.

              The Commissioner has reviewed all of the evidence in the record 
          relevant to the issues raised by the petition for review.

              This proceeding was commenced by the landlord's filing an 
          application, dated August 19, 1987, for a rent increase based on 
          improvements to the subject apartment.

              The application states that the following items were installed 
          in the subject apartment with the consent of the subject tenant:

                    1) New bathroom for $2,025.50;
                    2) New stove for $367.35, and 
                    3) New windows for $672.00.

              On December 2, 1987, the Administrator mailed to the subject 
          landlord a notice requesting that it submit copies of bills and 
          cancelled checks for the aforementioned items.

              On December 21, 1987, the landlord submitted copies of three 
          invoices indicating that the aforementioned items were paid for in 
          full by cash.

              In the order under review herein, the Administrator increased 












          Docket No.:CB 220312-RO

          the subject apartment's maximum rent by $45.00 per month for the 
          improvements done to the subject apartment.

              In its petition the landlord asserts that the cost of the 
          improvements to the subject apartment was $3,064.85, and that 
          1/40th of that amount is greater than $45.00 per month.

              After careful consideration, the Commissioner is of the opinion 
          that the landlord's petition should be granted.  As the landlord 
          submitted the proper documentary evidence as set forth in Policy 
          Statement (90-10) for proving individual apartment improvement 
          costs, e.g., invoice receipts marked paid in full, the Commissioner 
          finds that the Administrator should have increased the subject 
          apartment's maximum rent by 1/40th of $3,064.85.

              Accordingly, the Commissioner finds that the subject 
          apartment's maximum rent should be increased by $76.62 per month, 
          effective on February 1, 1988. 

              THEREFORE, in accordance with the provisions of the Rent and 
          Eviction Regulations for New York City, 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, revoked; and it is

              FURTHER ORDERED, that the subject apartment's maximum rent 
          shall be increased by $76.62 per month, effective February 1, 1988; 
          and it is

              FURTHER ORDERED, that pursuant to Section 2202.24 of the City 
          Rent and Eviction Regulations, if the owner has complied with the 
          Administrator's order, and as a result of the instant determination 
          there are arrears due to the landlord from the tenant, the tenant 
          may pay off the arrears in sixty equal installments during the next  
          sixty months. Should the tenant vacate after the issuance of this 
          order, all arrears are due immediately.

          ISSUED:



                                                                            
                                             Joseph A. D'Agosta
                                             Acting Deputy Commissioner  
    

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