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

          APPEALS OF                             DOCKET NOS.: EE120301RT
                                              :               EF110226RT
             SUSAN GOLD,                         
             C.M. RASMUSSEN                      RENT ADMINISTRATOR'S
                                PETITIONERS   :  DOCKET NO.: BG130223OM


          On May 16 and 24, 1990, the above-named petitioner-tenants filed 
          petitions for administrative review of an order issued on May 2, 
          1990 by a Rent Administrator concerning the housing accommodations 
          known as 35-40 83rd Street, Jackson Heights, New York, various 
          apartments, wherein the Administrator granted a major capital 
          improvement (MCI) rent increase for the subject controlled and 
          stabilized accommodations based on the installation of a new 

          The Commissioner has reviewed all the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issues raised by the petition for review.

          The owner commenced this proceeding on July 27, 1987 by filing an 
          application for an MCI rent increase.  The owner indicated that the 
          boiler/burner was installed between May and June of 1982.

          Several tenants submitted responses in which they raised objections 
          to a rent increase for the installation.

          On May 2, 1990, the Rent Administrator issued the order here under 
          review, finding that the installation qualified as a major capital 
          improvement, determining that the application complied with the 
          relevant laws and regulations based upon the supporting 
          documentation submitted by the owner, and allowing a rent increase.

          In these petitions one tenant (Gold) contends that the boiler was 
          installed prior to the tenant's occupancy of the subject apartment, 
          and that there was no mention of the boiler work on the tenant's 
          initial lease, or of the owner's intention to request an MCI rent 
          increase for it.  The other tenant (Rasmussen) contends that no 
          rent increase is warranted because the application was filed more 
          than two  years after the installation was completed.

          After careful consideration, the Commissioner is of the opinion 
          that these petitions should be denied.

          The Commissioner notes that the tenants' petitions do not challenge 
          the quality or adequacy of the improvement.


          ADMIN. REVIEW DOCKET NOS.: EF110226RT & EE120301RT

          Pursuant to Section 2522.4 of the Rent Stabilization Code, MCI rent 
          increases are not collectible during the term of the lease in 
          effect unless a specific provision in the lease authorizes an 
          increase during its term.

          In this proceeding it is clear that the owner's application was not 
          pending before petitioner-Gold took occupancy of the apartment.  
          The petitioner-Gold indicated that her initial lease commenced on 
          January 6, 1984 while the owner did not file the MCI application 
          until July 27, 1987.  This petitioner was afforded the same notice 
          as all other tenants in the building and is subject to the same 
          rent increase as other regulated tenants.  The petitioner's 
          argument regarding lack of notice is not relevant.  Since no 
          application was pending when the tenant took occupancy, the owner 
          was under no obligation to include specific mention of the 
          installation which later resulted in the instant rent increase.

          Regarding the contention that the owner's application was filed 
          more than two years after the installation was completed, the 
          Commissioner notes that the  owner's application was filed on July 
          27, 1987.  The application was not time-barred as implementation of 
          the two-year limitation for filing major capital improvement rent 
          increase applications did not take effect until August 1, 1987 in 
          accordance with the provisions of Sections 2520.7 and 2527.11 of 
          the Rent Stabilization Code, as implemented by Advisory Opinions 
          87-1 and 87-3.

          As to those tenants whose apartments were rent-controlled, the 
          Commissioner notes that there is no two year time limitation for 
          filing an application for a major capital improvement rent increase 
          in the Rent and Eviction Regulations.

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

          ORDERED, that these petitions be, and the same hereby are, denied, 
          and the Rent Administrator's order be, and the same hereby is, 


                                               JOSEPH A. D'AGOSTA
                                               Deputy Commissioner


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