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     ADMINISTRATIVE REVIEW
          IN THE MATTER OF THE ADMINISTRATIVE      DOCKET NO.: DD510251RT
          APPEAL OF


          Alexander G. Karpenos
                                                   RENT ADMINISTRATOR'S
                                  PETITIONER       DOCKET NO.: AJ530141OM
          -----------------------------------X


             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          The petitioner-tenant timely  refiled  an  administrative  appeal
          against an order  issued  on  February  27,  1989,  by  the  Rent
          Administrator  (92-31  Union  Hall  Street,  Jamaica,  New  York)
          concerning the housing accommodations known as 482 Fort Washington 
          Avenue, New York, New York, apartment 2A, wherein the Administrator 
          granted major capital improvement (MCI) rent  increases  for  the
          controlled and stabilized apartments in the subject premises based 
          on the installation of apartment windows at the premises.

          On appeal, the petitioner-tenant states, in substance, that he was 
          informed that the cost of the window installation was included in 
          his vacancy lease rent; the windows were installed only two  days
          after he moved in; and at the time he moved in, he was never told 
          about the MCI application.

          In response to the tenant's  petition,  the  owner  contends,  in
          substance, that the tenant was not billed for the  windows  until
          approval was received from DHCR, and that  the  tenant  was  duly
          served and knew of the pending MCI application.

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

          Rent increases for major capital improvements are  authorized  by
          Section 2522.4 of the Rent Stabilization Code for rent stabilized 
          apartments. Under rent stabilization, the improvement must 
















          ADMINISTRATIVE REVIEW DOCKET NO.: DD510251RT


          generally be building-wide; depreciable under the Internal Revenue 
          Code, other than for ordinary repairs; required for the operation, 
          preservation, and maintenance of the structure; and replace an item 
          whose useful life has expired. It is the established position  of
          the Division that the installation of apartment windows, as in the 
          instant case, qualifies as an MCI.

          The evidence of record in the instant case indicates that the owner 
          correctly complied with the application procedures for an MCI and 
          that the Rent Administrator properly computed the appropriate rent 
          increase.

          The Commissioner notes that the Rent Stabilization Law  and  Code
          preclude an owner from collecting an increase predicated on an MCI 
          unless and until an order is issued by the Division authorizing the 
          collection of same, and that the order under appeal excluded  the
          collection of the increase during the term of an  existing  lease
          unless it contains an authorization  provision  for  the  earlier
          collection of same.

          In this proceeding it is clear that the owner's MCI application was 
          not pending before the Division when the petitioner took occupancy 
          of the apartment. The petitioner's initial lease began on June 1, 
          1986, while the owner did not file its application until October of 
          1986. Furthermore,  the  tenant  admits  that  the  windows  were
          installed after he commenced occupancy. Since no application  was
          pending when the tenant took occupancy, the owner  was  under  no
          obligation to include any specific mention of the installation in 
          the lease. The record indicates that the tenant was afforded  the
          same notice as all other tenants. In fact, the tenant submitted an 
          answer to the owner's application while the proceeding was pending 
          before the Administrator.

          With regard to the tenant's  contention  that  his  initial  rent
          included the window installation, the Commissioner notes that the 
          tenant has failed to submit a copy of his vacancy lease either on 
          appeal or in the original proceeding. This order and  opinion  is
          issued without prejudice to the tenant's right  to  file  a  rent
          overcharge complaint, if the facts so warrant.  The  Commissioner
          notes that the tenant had filed an overcharge complaint on July 16, 
          1986 (Docket Number AG510477R) which was granted on August 22, 1988 
          prior to the issuance of the MCI order. The Commissioner  further
          notes that the tenant vacated the subject apartment in 1992.





          ADMINISTRATIVE REVIEW DOCKET NO.: DD510251RT








          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, it is

          ORDERED, that this 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
                                              Deputy Commissioner






    

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