OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA

                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
                   VALENTINE DOUGLAS,

                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO.: AF210158OM 


          On February 19, 1988, the above-named petitioner-tenant timely re- 
          filed a petition for administrative review (PAR) of an order issued 
          on October 30, 1987, by the Rent Administrator, concerning the 
          housing accommodation known as 56  Rockaway Parkway, Brooklyn, New 
          York, Apartment 14B, wherein the Administrator granted a former 
          owner's application for a rent increase which was based on the 
          installation of a major capital improvement (MCI), new windows.

          The Commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issue raised by the administrative appeal. 

          The former owner commenced the instant proceeding by initially 
          filing an application for a rent increase predicated on the 
          installation of windows at a total cost of $37,355.00.

          In Docket No. AF210158OM, issued October 30, 1987, the Rent 
          Administrator issued the order here under review, approving the 
          owner's MCI application by authorizing a rent increase of $5.56 per 
          room, per month for all rent controlled and rent stabilized 
          apartments in the subject building.

          While the application was being processed, the building was sold to 
          Jean M. Deliv.

          In this petition, the tenant contends, in substance, that the 
          building changed ownership and that any capital improvement in that 
          year would be part of the consideration for the fair value received 
          by the previous owner.

          In response to the petition, the owner contends that the change of 
          ownership was lawful and notification was sent to the tenants and 
          the DHCR, and the owner took over the building in its entirety.

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

          Rent increases for major capital improvements are authorized by 
          Section 2522.4 of the Rent Stabilization Code and are warranted 
          where the improvements are building-wide, depreciable under the 
          Internal Revenue Code, other than for ordinary repair, required for 
          the operation, preservation and maintenance of the structure and 
          replace an item whose useful life has expired.

          The record in the instant case indicates that the Administrator's 
          order was predicated upon a review of full supporting documentation 
          including contracts, contractor's certification and cancelled 

          A change in the ownership of the building does not affect the 
          validity of the order granting the rent increase.  It is the actual 
          work performed that merits the increase. The fact that there was a 
          subsequent change in ownership is insignificant.

          Based on the entire evidence of record , the Commissioner finds 
          that the Administrator's order is correct and should be affirmed.

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

          ORDERED, that this petition be, and the same hereby is, denied; and 
          that the order of the Rent Administrator be, and hereby is, 


                                                  LULA M. ANDERSON  
                                                  Deputy Commissioner


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