OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA

                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF

                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO:  CC 630212 OM 


          On August 8, 1990, the above-named petitioner-owner filed a 
          petition for administrative review (PAR) of an order issued on July 
          13, 1990, by the Rent Administrator, concerning the housing 
          accommodation known as 2438 Morris Avenue, Bronx, NY wherein the 
          Administrator granted the owner's application for a rent increase, 
          effective for rent stabilized apartments as of November 1, 1988, 
          based on the building-wide installation of new aluminum windows.

          The Commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 

          In this PAR, the owner requests modification of the Administrator's 
          order and contends, in substance, that the effective date of the 
          rent increase for stabilized apartments should be changed to May 1, 
          1988 because the subject application was received by DHCR on March 
          29, 1988 and should have been considered complete as of that date.  
          The owner contends that the six month delay by DHCR in sending out 
          tenant notifications was not within the owner's control who should 
          not be penalized due to the negligence of DHCR processing 
          procedures.  DHCR sent out tenant notifications on September 19, 

          In response to the owner's petition, three tenants filed answers, 
          contending, in substance, that the rent increase is currently a 
          hardship, the windows were not installed until November, 1988 and 
          that the windows were installed prior to their occupancy.

          The owner responded by providing documentation showing that the 
          windows were installed in November, 1987 and that the tenant in 

          ADMIN. REVIEW DOCKET NO. EH 630118 RO

          question was notified of the pending MCI rent increase application 
          prior to the signing of the lease.

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

          With respect to the effective date of the Administrator's order as 
          it affects stabilized apartments, the Commissioner notes that prior 
          to the promulgation of the current Rent Stabilization Code (May 1, 
          1987) it was the well recognized position of the Division that an 
          MCI rent increase was effective the first rent payment date 30 days 
          after the owner completed its application by the submission to the 
          DHCR of a certification of service of same upon the tenants 
          (Accord: CG 430038-RO). (With respect to rent controlled 
          apartments, the applicable regulatory provision provides that an 
          order adjusting a previously established rent shall not be 
          effective prior to the issuance thereof, with limited exception not 
          here relevant).

          By virtue of the current stabilization Code, service of notice of 
          the application (as well as other documentation) devolved upon the 
          DHCR.  Thus in conformity with established policy and procedure the 
          application is deemed completed when notice thereof is given to the 
          affected parties and such individuals are afforded the opportunity 
          to respond thereto.  

          Turning to the case at hand, the record discloses that the instant 
          application was filed with the DHCR on March 29, 1988; and that 
          notice of the application was not served on the tenants until 
          September 19, 1988, after the application went through a screening 
          process to ascertain whether all requisite documentation had been 
          submitted.  (An incomplete application could result in the 
          rejection thereof).  However, in view of the inordinate six month 
          delay in completing the application process by serving notice of 
          the application upon the affected parties, the Commissioner deems 
          it appropriate, under the facts and circumstances of this case, to 
          change the effective date of the increase for stabilized apartments 
          to May 1, 1988 (rather than November 1, 1988), the first rent 
          payment date 30 days after when, by nature of this proceeding, 
          notice of the application should have been served on the tenants.  
          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          it is 

          ORDERED, that this petition be, and the same hereby is, granted; 
          that the order of the Rent Administrator be, and the same hereby is 
          modified as herein above provided so as to change the effective 
          date as to rent stabilized apartments to May 1, 1988; and that as 
          so modified, said order be and the same hereby is affirmed; and it 
          is further

          ADMIN. REVIEW DOCKET NO. EH 630118 RO
          ORDERED, that the tenants may pay any arrears in rent resulting 
          from this order in three equal monthly installments.


                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner


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