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.: DJ420025RT
                                          :  
        DON & DEBORAH DOUGLASS               RENT ADMINISTRATOR'S
                                             DOCKET NO.: BG410356OM
                            PETITIONERS   : 
      ------------------------------------X                             

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

      On October 17, 1989, the above named petitioner-tenants timely filed a 
      petition for administrative review (PAR) against an order issued on 
      September 15, 1989, by a Rent Administrator concerning the housing 
      accommodations known as 139 East 30th Street, Apartment 4A, New York, New 
      York, wherein the Rent Administrator determined that the landlord was 
      entitled to a rent increase based on the installation of a major capital 
      improvement (MCI).

      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 this administrative appeal.

      The landlord commenced this proceeding on July 24, 1987, by filing an 
      application for a rent increase based on the installation of the following 
      MCIs at a total cost of $53,800.00: a) boiler/burner; and b) replacement 
      windows.

      The tenants did not submit an objection to the landlord's application 
      although afforded the opportunity to do so.

      On September 15, 1989, the Rent Administrator issued the order here under 
      review finding that the installations qualified as MCIs, determining that 
      the application complied with the relevant laws and regulations based upon 
      the supporting documentation submitted by the landlord, and allowing 
      appropriate rent increases for rent controlled and rent stabilized tenants.

      In this petition the tenants state that the improvements were made by the 
      prior landlord.

      In response to the tenants' petition, the landlord contends, in substance, 
      that it has complied with DHCR regulations with respect to applying for the 
      rent increase herein; that the previous landlord had not filed an 
      application for the MCIs herein; and that the PAR should be denied because 
      the tenants' argument has no merit.

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









          ADMIN. REVIEW DOCKET NO.: DJ420025RT




      The landlord has the right to file for a major capital improvement rent 
      increase for improvements made by a prior landlord where the previous 
      landlord did not do so.  Similarly, the new landlord would have been 
      eligible to collect the rent increase herein if the previous landlord had 
      commenced the proceeding prior to the sale of the premises.

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

      ORDERED, that this petition 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
                                           Deputy Commissioner