STATE OF NEW YORK 
                                OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK  11433

          APPEAL OF                               DOCKET NOS.: CC220402RO 
                 RIDGE LEASING CO.,                            CC220429RO
                                   PETITIONER                  CC220430RO
          ------------------------------------X                CC220431RO

                                                  D.R.O. ORDER NOS.:
                                                  BK220193OI, respectively

                          FOR ADMINISTRATIVE REVIEW IN PART

               The above named petitioner-owner timely filed eight Petitions 
          for Administrative Review against eight orders issued by the Rent 
          Administrator, 92-31 Union Hall Street, Jamaica, New York, 
          concerning housing accommodations known as various apartments, 7410 
          and 7420 Ridge Boulevard, Brooklyn, New York, wherein the Rent 
          Administrator permanently increased the monthly rents of the 
          subject apartments by $3.25 for each air conditioner outlet 
          installed in each apartment.  However, the owner had requested, 
          with tenant consent, that each tenant pay the total cost ($130.00) 
          of each outlet in a one-time payment with no increase in monthly 
          rent.  (Some apartments received more than one outlet.)

               The issue in this appeal is whether the Administrator should 
          have increased the monthly rent.

               The applicable section of the Rent and Eviction Regulations is 
          Section 2202.4, corresponding to Section 26-405.g.4(e) of the New 
          York City Rent and Rehabilitation Law.

          ADM. REVIEW DOCKET NOS.: CC220402RO ET AL.

               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 the administrative appeal.

               In these petitions, the owner contends that the Rent 
          Administrator's Orders are incorrect and should be modified because 
          no monthly increases had been requested.  Instead, the owner had 
          requested, with the consent of the subject tenants, a one-time 
          increase of $130.00, for each outlet, $130.00 being the proven cost 
          of each outlet.  Accordingly, the owner requests on appeal that the 
          Administrator's orders be amended to reflect a one-time charge of 
          $130.00 for each outlet.

               The Commissioner is of the opinion that these petitions should 
          be granted in part.

               At the outset, the Commissioner notes that in at least one 
          other proceeding (BK220198OI) based on the identical fact pattern 
          regarding another apartment in the subject premises the 
          Administrator terminated that proceeding stating that there was no 
          provision for granting a one-time increase but also stating that 
          the parties were not barred from entering into a one-time voluntary 
          agreement for the one-time increase in question.  That order was 
          without prejudice to the owner's right to refile for a one-fortieth 
          increase if the parties were unable to reach such an agreement. 
          That order was not appealed by the owner or the tenant.  

               A staff person from the Division has been informed by the 
          owner that based on the just cited order, the owner has collected 
          the one-time payments with tenant consent and has not increased the 
          rent by the $3.25 per outlet provided in the eight orders herein 
          under review.

               Based on the above, and on the fact that the owner never 
          applied for the increase that it was granted, and also on the fact 
          that the $130.00 per outlet cost was documented in the proceedings 
          before the Administrator and the charge had the written consent of 
          the tenants herein, the Commissioner hereby revokes the eight 
          orders herein under review and the rent increases granted therein.

               Any payment(s) in excess of $130.00 per outlet in the subject 
          apartments must be refunded.  (According to the owner no such 
          excess was charged or received.)

               The Commissioner cautions the parties that such private 
          agreements are not encouraged and can be risky and/or subject to 

          ADM. REVIEW DOCKET NOS.: CC220402RO ET AL.

          abuse.  For example, a dishonest owner could misrepresent the cost 
          of the improvement to the tenant(s).  Furthermore, under Rent and 
          Eviction Regulations Section 2200.15 an agreement by a tenant to 
          waive the benefit of any provision of the Rent Law or Regulations 
          is void.

               The Commissioner notes parenthetically that under the Rent 
          Regulation Reform Act of 1993 (RRRA) Section 26-405.g.4(e) of the 
          NYC Rent and Rehabilitation Law has been amended to provide that 
          prior approval by the DHCR of rent increases based on one-fortieth 
          of the cost of improvements to an individual apartment is no longer 
          required.  However, under Rent Control the Division must be 
          informed of the increase on Form Number RN-79-b.  See Operational 
          Bulletin 94-1.  However, the RRRA  became effective July 7, 1993 
          and is not applicable to the present proceedings.

               Finally, the Commissioner notes that this order has no effect 
          on those other apartments for which the owner requested and 
          received a monthly increase with the consent of the tenants 

               THEREFORE, in accordance with the Rent and Eviction 
          Regulations, it is

               ORDERED, that these petitions be, and the same hereby are, 
          granted in part and the Rent Administrator's orders be, and the 
          same hereby are, revoked as are the rent increases therein.


                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner


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