FA 610220 RT
                                
                        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
                                
                                
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IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
APPEAL OF                               DOCKET NO.: FA 610220 RT

     SANTIAGO PINALES                   DISTRICT RENT
                                        ADMINISTRATOR'S DOCKET
                                        NO.: CA 630130 OM
                        PETITIONER
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  ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
                                
      On January 8, 1991 the above named petitioner-tenant timely
filed  a  Petition for Administrative Review against an order  of
the  Rent  Administrator issued December  13,  1990.   The  order
concerned housing accommodations located at 2105 Ryer Ave, Bronx,
New   York,   wherein  the  Administrator  granted  the   owner's
application  for  a  rent increase based on the  installation  of
major capital improvements (MCI).

      The  Commissioner  has reviewed the  record  and  carefully
considered  that portion relevant to the issues  raised  by  this
appeal.

      The owner commenced this proceeding on January 12, 1988  by
filing an application for a rent increase due to the installation
of  major  capital  improvements  to  wit  -  new  burner/boiler,
pointing  and  waterproofing and new windows at a total  cost  of
$110,672.75,   The  tenants  were  served  with  a  copy  of  the
application   and  afforded  an  opportunity  to  respond.    The
Division's records indicate that petitioner took occupancy of his
apartment on November 1, 1988.

      No tenant's answers were received by the Administrator.  On
December  13, 1990 the Administrator issued the order here  under
review.   The owner's application was granted and a rent increase
was ordered for rent controlled and rent stabilized tenants.

     On appeal, the petitioner states that he was not a tenant in
the  building  when  the application for the  rent  increase  was
filed.   He  also states that his rent was increased pursuant  to
the Administrator's order when his lease contained no mention  of
the owner's right to do so.  The owner did not file a response.
      After  careful  review of the evidence in the  record,  the
Commissioner  is  of  the  opinion that the  petition  should  be
denied.

     Section 2522.4(d)(4) of the Rent Stabilization Code requires
that, when an MCI application is pending at the commencement of a
vacancy lease, the owner may not collect such increase until  the
expiration  of  the  vacancy lease unless the  lease  contains  a
clause stating "that such application is pending before the  DHCR
and the basis for the adjustment, and that the increase which  is
the  subject  of  the application, if granted, may  be  effective
during  the  term  of  the lease".  This section  codified  long-
standing  policy  of the New York City Conciliation  and  Appeals
Board (CAB), the agency formerly charged with enforcement of  the
Rent  Stabilization  Law.   A  general  clause  allowing  a  rent
increase  during  the  term of the lease does  not  satisfy  this
requirement.  Accord: BG 210383 RO; ART 02715-Q et. al.

     In the instant proceeding the Commissioner cannot know, from
the  record, what provisions, if any, petitioner's initial  lease
contained.   In any event, this issue is not relevant to  whether
the  Administrator was correct in issuing the  order  here  under
review.  Petitioner's objection is the proper subject of  a  rent
overcharge proceeding. Therefore, petitioner's objection must  be
denied and the order appealed from affirmed.

      The  tenant is advised to file a rent overcharge  complaint
with DHCR if the facts so warrant.

           THEREFORE, pursuant to the Rent Stabilization Law  and
Code, it is

          ORDERED, that this petition be, and the same hereby is,
denied  and that the Rent Administrator's order be, and the  same
hereby is affirmed.



ISSUED:




                                        JOSEPH A. D'AGOSTA
                                        Deputy Commissioner
                                        
    

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