FE 110007-RT

                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               9-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                               DOCKET NO.:   
                                                  FE 110007-RT 
                     DORITH MEGED,                RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                  PETITIONER      CD 130204-OM


          On April 30, 1991, the above-named tenant, filed a  petition  for
          administrative review of an order issued on March 27, 1991, by  a
          Rent Administrator concerning the  housing  accommodation,  known
          as Apartment 2-F, 96-09 66th Avenue, Rego Park, New York  wherein
          the Rent Administrator determined that the owner was entitled  to
          a rent increase based on a major capital improvement (MCI).

          The Commissioner has reviewed all of 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 April 2,  1988  by  filing
          an application for a rent  increase  based  on  a  major  capital
          improvements, to wit  -  a  new  boiler/burner,  and  replacement
          windows building-wide at a total cost of $127,490.00.

          On November 17, 1988,  the  Division  of  Housing  and  Community
          Renewal (DHCR) served each tenant with a copy of the  application
          and afforded the tenants the opportunity to review it and comment 

          The petitioning tenant was not yet in occupancy at  the  time  of
          the filing of the owner's application.

          On March 27, 1991, the Rent Administrator issued the  order  here
          under review finding that the installations 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  appropriate
          rent increases for rent controll d  and  rent  stabilized  apart-

          In her petition for administrative review,  the  tenant  requests
          modification of the Rent Administrator's order and  alleges  that
          she took occupancy on June 1, 1989 and that her lease met none of 
          the notice requirements imposed on the owner pertinent to pending 

          FE 110007-RT
          MCI applications.  Attached to the petition is a copy of the ten 
          ant's lease.

          In answer to the tenant's petition the owner states:

                    Tenant is correct  and  the  increase  will  be
                    removed until present lease expires.   At  that
                    time the increase will  be  added  to  the  re-
                    newal lease.  It is also  correct  that  tenant
                    owes no retroactive rent for the MCI.

                    Tenant's  present  lease  rental  is   $590.34.
                    Her lease expires May 31, 1991.  She  signed  a
                    one year lease and that  will  bring  her  rent
                    to  $616.91.   We  shall  add  $20.76  at  that
                    time, in compliance with rule that it  may  not
                    be granted prior to that time.  The  new  rent,
                    after  June  1,  1991  will  be  $616.91   plus
                    $20.76 for a total of $637.67.

          After careful consideration the Commissioner is  of  the  opinion
          that this petition should be denied.

          The Commissioner notes that  the  owner  has  conceded  that  the
          tenant is correct in her allegation of the facts and  has  agreed
          to the relief requested by the tenant.  The  Commissioner  finds,
          accordingly, that there is no issue to be resolved herein.

          In the attachment to the Administrator's order, it is stated,

               where the application  for  this  increase  was  pending
               prior to the commencement date of a vacancy  lease,  the
               increase granted in this Order is  collectible  only  if
               such lease contains a specific provision  regarding  the
               application pending before the Division of  Housing  and
               Community Renewal, the basis for  the  application,  and
               that any increase  granted  pursuant  to  a  DHCR  order
               would be effective during the term of the lease. 

          Accordingly, the Commissioner finds that  the  tenant  is  exempt
          from the MCI increase for the period June 1, 1989 through May 31, 

          THEREFORE, in accordance with  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.


                                                ELLIOT SANDER

          FE 110007-RT
                                                Deputy Commissioner


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