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

          APPEAL OF                              DOCKET NO.: DL110048RT
                                                 DOCKET NO.: DB130077OM
                                PETITIONER    : 


          On December 13, 1989, the above-named petitioner-tenant timely 
          filed a Petition for Administrative Review against an order issued 
          on December 8, 1989, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as various apartments of 46-14 30th Avenue, Astoria, New 

          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 proceeding was commenced on February 10, 1989 by the owner's 
          submission of an application for a rent increase based on the 
          installation of a major capital improvement (MCI) wherein the owner 
          stated that a new oil boiler and burner were installed on July 26, 
          1986 at the total cost of $4700.00.  (The owner originally filed an 
          MCI application for this installation on March 2, 1987, but failed 
          to submit the required city approvals, and therefore the 
          application was terminated on December 30, 1988 under Docket Number 

          Two tenants responded to the owner's application contending, in 
          substance, that the application should be denied because it was 
          previously submitted and terminated due to the owner's failure to 
          submit city approvals required for processing the application.

          On December 14, 1989 the Rent Administrator issued the order here 
          under review, finding that installation qualified as an MCI, 
          determining that the application complied with the relevant laws 
          and regulations based upon the supporting documents submitted by 
          the owner, and allowing rent increases for rent stabilized 

          In this petition, the tenant contends that the order should be 
          reversed because the application was previously terminated by the 
          Rent Administrator on December 30, 1988 under Docket No. 


          ADMIN. REVIEW DOCKET NO.: DL110048RT

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

          Section 2522.4(a)(8) of the Rent Stabilization Code precludes a 
          rent increase for an MCI when the application is filed more than 
          two years after the completion of the installation, not the date of 
          issuance of any required governmental certificate.  While this Code 
          section envisions that governmental sign-offs be submitted with the 
          application to be filed within two years of the physical completion 
          of the work, the Code provides for a reasonable extension of time 
          where the applicant can demonstrate a delay, beyond the applicant's 
          control, in obtaining such approvals for which the applicant has 
          promptly applied withiin such two year period.  The Code does not 
          create a new two-year filing period dating from the time that the 
          governmental approval is actually obtained.

          The evidence of the record in the instant case indicates that the 
          owner originally filed his MCI application on March 2, 1987 within 
          two years of the installation of the boiler/burner (July 26, 1986).  
          However, the application was denied on December 30, 1988 due to 
          owner's failure to submit the required city permits and approvals.  
          The Rent Administrator made three separate requests (May 1, 1987; 
          June 21, 1988; and July 28, 1988) for the Certificate of Approval 
          for Oil Burning Installation and Certificate for Electrical 
          Inspection prior to denying the application.  The Commissioner 
          notes that the owner did not file an appeal against the 
          Administrator's denial of his application or refile his application 
          within 35 days of said denial order.

          On February 10, 1989 the owner re-filed his application, assigned 
          Docket No. DB130077OM, claiming in a cover letter to his refiled 
          application to have the necessary documentation requested by the 
          DHCR.  This re-filing date was not timely and was beyond the two 
          year limitation set forth in the Code.  

          The applicant did not demonstrate that the application for the 
          required Electrical Certificate (BEC-16A) was made within the two 
          year time period set forth within the Code or otherwise demonstrate 
          that the delay in receiving said certificate was beyond the 
          applicant's control.  The owner did not submit the Electrical 
          Certificate (BEC-16A) until November 21, 1989, after the Rent 
          Administrator requested said certificate on November 3, 1989.  
          Accordingly, the Commissioner finds that the Rent Administrator's 
          determination is not supported by the record.  Therefore, the Rent 
          Administrator's order granting a MCI increase for said 
          boiler/burner installation is hereby revoked.

          The Commissioner notes that this order has the effect of reducing 
          the rent to the amount in effect immediately prior to the issuance
          of the instant major capital improvement increase adjustment 
          revoked herein, to which may then be added any authorized rent 
          increases unrelated to the major capital improvement.  The 

          ADMIN. REVIEW DOCKET NO.: DL110048RT

          resulting reduction in rent continues in effect notwithstanding 
          that an Article 78 proceeding for judicial review or any other 
          legal action may have been taken in connection with this order of 
          the Commissioner unless and until an order is issued to the 

          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 Rent Administrator's order be, and the same hereby is 
          revoked, and it is further

          ORDERED, that the owner refund any excess rent collected as a 
          result of this order and opinion by granting to the tenants a 
          credit of twenty percent per month of such excess rent commencing 
          on the first rent payment date after the issuance of this order and 
          opinion until all overpayments  have been made.


                                               JOSEPH A. D'AGOSTA
                                               Deputy Commissioner



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