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. CF610188RO
                                              :    DRO DOCKET NO.
              Steven Finkelstein,                             B3101135R/T
                                                   TENANT:Jeanette Lanier
                               PETITIONER     :
          ------------------------------------X

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


          On June 20, 1988, the above-named  owner  filed  a  Petition  for
          Administrative Review against an order issued on May 18, 1988, by 
          the Rent Administrator, 92-31 Union Hall Street, Jamaica, New York, 
          concerning  the  housing  accommodations  known  as  1075   Grand
          Concourse, Bronx,  New  York,  Apartment  No.  6-0,  wherein  the
          Administrator found an overcharge.

          In making  that  finding  pursuant  to  the  tenant's  overcharge
          complaint, the Administrator did not include in his calculations, 
          any lawful rental increase based on the installation of a  "major
          capital improvement" as defined in the Rent Stabilization Law and 
          Code ("MCI" herein).

          Asserting that such an increase was in fact granted, the  instant
          petition cites its absence  from  the  Administrator's  order  as
          causing an erroneous finding of overcharge.  Appended is a copy of 
          a 1982 opinion of the Conciliation and Appeals Board (predecessor 
          of this Division), granting  an  MCI-based  increase  (of  8.21%)
          effective March 19, 1981.

          The record contains no tenant's answer to the petition.  

          The Commissioner is of the opinion that this petition  should  be
          granted.

          The aforementioned opinion of the Conciliation and Appeals Board, 
          having become part of this  Division's  records,  must  be  taken
          cognizance of by the Commissioner.  The rental increase permitted 
          due  to  the  MCI,  when  incorporated  in  the   Administrator's
          calculations, eliminates any finding of overcharge.  




          CF610188RO












          CF610188RO


          If the owner has already complied with the  Rent  Administrator's
          order and there are arrears due to the owner as a result  of  the
          instant determination, the tenant is permitted  to  pay  off  the
          arrears in 24 equal monthly installments.  Should the tenant vacate 
          after the issuance of this order or have  already  vacated,  said
          arrears shall be payable immediately.

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

          ORDERED, that this petition be, and the same hereby is,  granted,
          and that the order of the Rent Administrator, be,  and  the  same
          hereby is revoked.  Through May  31,  1988,  there  was  no  rent
          overcharge.




          ISSUED:

                                                  




                                                   JOSEPH A. D'AGOSTA
                                                   Deputy Commissioner