EH 430106-RO

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

          APPEAL OF                               DOCKET NO.:   
                                                  EH              430106-RO
                 GEORGE H. BEANE        
                 GELLES & KORNGOLD,               DOCKET NO.:
                                  PETITIONER      BH 430219-OM


          On August 13, 1990,  the  above-named  petitioner  owner  by  its
          attorneys filed a Petition for Administrative Review of an  order
          issued on July 20,  1990,  by  the  District  Rent  Administrator
          concerning the housing accommodations, known  as  225  West  80th
          Street, New York, New York wherein the Rent Administrator  denied
          the owner's application for a  Major  Capital  Improvement  (MCI)
          rent increase on the basis that it was filed more than two  years
          after the work was completed and thus in violation of DH R  regu-

          The applicable law is Section 2522.4 of  the  Rent  Stabilization

          The issue on appeal is whether the petitioner filed its PAR in  a
          timely matter.

          The owner alleges that on July 31, 1987 it filed  an  application
          for an increase in rent due to various Major Capital Improvements 
          (MCI) it had made in the  above-captioned  premises.   The  owner
          further alleges that on August  24,  1987,  the  application  was
          rejected by the DHCR for procedural defects.  The application was 
          refiled, with said defects being corrected, on August 27, 1987.

          According to the Administrator, the above  mentioned  application
          was filed by the owner for the first time on August 27, 1987.  

          On July 20, 1990 the Administrator under Docket No. BH  430219-OM
          denied the owner's request.   In  its  order,  the  Administrator
          found that the installations, claimed by the owner as  the  basis
          for its
          application for a rent increase  were  completed  more  than  two
          years prior to the filing of the application,  contrary  to  DHCR
          regulations stating that an owner must file  an  MCI  application
          within two years of such installation.

          EH 430106-RO
          In its petition, the owner contends, that the  Administrator  was
          in error in finding that its MCI application had been filed late. 
          The owner contends that the Commissioner regarded August 27, 1987 
          as the original filing date, whereas the original filing date was 
          actually July 31, 1987.  Section 2522.4(a)(8) of the Re t  Stabi-
          lization Code states that an owner must file an  application  for
          an MCI rent increase no later than two years aft r  the  improve-
          ments are made.  Advisory Opinion 87-1 set the effective date for 
          Section 2522.4(a)(8) as August 1, 1987. Since the filing date  of
          the MCI application was either before or after  August  1,  1987,
          the difference of opinion betwe n  the  petitioner  and  Adminis-
          trator regarding the timing  of  the  filing  date  is  vital  in
          determining the timeliness of owner's application.

          The Commissioner is of the opinion that the proceeding should  be
          remanded to the Administrator, for further consideration.  

          An examination of the record reveals that the only  documentation
          to support  the  owner's  contention  of  timely  filing  of  its
          application for an M.C.I. Rent increase is  a  copy  of  a  cover
          letter submitted with its  application.   Although  the  original
          cover letter in  the  record  below  is  not  stamped,  the  copy
          submitted, by owner with its PAR is  stamped  with  a  DHCR  date
          stamp that reads, "July 31, 1987."  However, the same examination 
          does not reveal any convincing evidence that the owner filed  its
          application  for  the  first  time  after  July  31,  1987.   The
          Commissioner is therefore of the opinion that  these  proceedings
          should be remanded to the Administrator for further consideration 
          in order to determine the date of the filing of  the  application
          for an MCI rent increase, such consideration to include hearings, 
          if necessary, if upon  the  conclusion  of  such  procedures  the
          Administrator is unable to determine the date of  filing  of  the
          application, the Administrator is directed  to  consider  owner's
          MCI application on its merits.

          THEREFORE, in accordance with the provisions of the Rent Stabili 
          zation Law and Code, Chapter 403, Laws of  1983,  as  amended  by
          Chapter 102, Laws of 1984, and Operational Bulletin 84-1, it is

          ORDERED, that the petition hereby is remanded,  to  the  District
          Rent Administrator for further consideration.


                                                ELLIOT SANDER
                                                Deputy Commissioner


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