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.:DD 410158-RT
                                         :  
                                            RENT ADMINISTRATOR'S
      RICHARD AND JANICE PATTERSON,         DOCKET NO.:AI 410204-OM
                           PETITIONERS   : 
     ------------------------------------X                             

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On April 21, 1989 the  above-named  petitioners  filed  an  Administrative
     Appeal against an order issued on March 23,  1989  by  the  District  Rent
     Administrator, 92-31 Union Hall Street, Jamaica, New York  concerning  the
     housing accommodations known as 308 West  89th  Street,  New  York,  N.Y.,
     Apartments 4A,  wherein  the  Rent  Administrator  granted  major  capital
     improvement (MCI) rent increases of $20.94 per room per  month,  effective
     as of June 1, 1988, plus a retroactive increase of $209.40  per  room  for
     the stabilized apartments in the subject premises  based  on  the  finding
     that various installations, with  certain  exceptions,  constituted  major
     capital improvements.

     In this Administrative Appeal, the petitioner-tenants do not question  the
     installation  but  contend,  in  substance,  that  the  proposed   monthly
     increase of $41.88 for the subject accommodation's two rooms, as  well  as
     the ten month retroactive charge of $418.80 exceed the  6%  limit  allowed
     under the Rent Stabilization Law.

     In response to the tenant's petition, the owner filed an  answer  stating,
     in substance, that it thought an order  for  an  MCI  increase  would  not
     exceed any lawful limitations on the amount of the increase.   However  on
     receiving the petition, the owner has checked with DHCR to confirm that  a
     6% maximum increase on  each  the  prospective  increase  and  retroactive
     payment is in fact the legal yearly limit for an MCI increase and that any 
     overcharge will be straightened out with the tenant.

     After a careful  consideration  of  the  entire  evidence  of  record  the
     Commissioner is of the opinion that the Administrative  Appeal  should  be
     denied.

     The record indicates that the owner correctly complied with the applicable 
     procedures  for  a  major  capital  improvement  rent  increase  and   the
     Administrator properly computed such increase predicated on  substantiated
     costs.  The 6% statutory restriction on the collection of increases of the 
     type involved herein is understood.  The owner is cautioned that violation 
     of the 6% restriction on collectibility of the instant  increase  or  when
     combined with other MCI orders may  give  rise  to  a  complaint  of  rent
     overcharge.








          DOCKET NUMBER: DD 410158-RT
     The determination herein is without prejudice to the right to  the  tenant
     herein to file an  appropriate  complaint  of  rent  overcharge  with  the
     Division, if the facts so warrant.

     On the basis of the entire evidence  of  record,  it  is  found  that  the
     Administrator's order is correct and should be affirmed.

     THEREFORE, in accordance  with  the  applicable  provisions  of  the  Rent
     Stabilization Law and Code, and Operational Bulletin 84-1, it is

     ORDERED, that the Administrative Appeal be, and the same hereby is denied; 
     and that the Administrator's order be, and the same hereby is affirmed.

     ISSUED:










                                                                   
                                          JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner




                                                   
    

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