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   ADMINISTRATIVE REVIEW
          IN THE MATTER OF THE ADMINISTRATIVE      DOCKET NO.:  CI210099RT
          APPEAL OF
                    JOEL AND SHARON PEKULY
                                                   RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  BB230109OM   
                                        
                                   PETITIONER
          -------------------------------------X

          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

          The above-named petitioner-tenants timely filed an administrative 
          appeal against an order issued on June 15, 1988 by the Rent 
          Administrator (92-31 Union Hall Street, Jamaica, NY) concerning the 
          housing accommodations known as 368 97th Street, Apt. 3C, Brooklyn, 
          NY, wherein the Administrator granted major capital improvement 
          (MCI) rent increases for the controlled and stabilized apartments 
          in the subject premises based on the installation of new windows at 
          the premises.

          On appeal, the petitioner-tenants state, in substance, that they 
          moved into their apartment in 1984; the new windows were installed 
          and the cost of these windows was calculated into their initial 
          rent; their vacancy lease commenced on October 1, 1984 (a copy of 
          which was submitted) and states "Landlord has ordered and will 
          install new thermal windows throughout the apartment"; and when the 
          new windows were installed in the rest of the building, no work was 
          done in their apartment as they already had thermal windows in 
          their apartment for over two years.

          In response, the owner contends, in substance, that the tenants' 
          petition has no merit.

          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that this administrative appeal 
          should be granted.

          The evidence of record indicates that the petitioners began 
          occupancy of the subject apartment pursuant to a two year vacancy 
          lease commencing October 1, 1984 and that said lease contained a 
          provision stating that the owner had ordered and would install new 
          thermal windows in the subject apartment.














          ADMIN. REVIEW DOCKET NO. CI210099RT

          The owner's MCI application indicates that the contract for the 
          building-wide window installation wasn't even entered into until 
          October 6, 1986, and that the work was completed in December of 
          1986.  Accordingly, the Commissioner finds that the MCI rent 
          increase should not apply to the subject apartment as the tenants' 
          initial rent included new thermal windows which were installed 
          prior to and were not a part of the MCI installation.

          This order and opinion is issued without prejudice to the tenants' 
          right to file for a rent overcharge complaint, if the facts so 
          warrant.

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

          ORDERED, that this administrative appeal be, and the same hereby 
          is, granted, and that the Administrator's order be, and the same 
          hereby is, modified as hereinabove indicated.  The owner is 
          directed to credit any excess rent collected as a result of this 
          order at the rate of 20% per month commencing on the first rent 
          payment date after issuance of this order of the Commissioner until 
          all overpayments have been refunded.

          ISSUED:



                                                       ____________________
                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner





















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