FE 210350-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 210350-RT 
                 OLGA SCHYKEBYNEC,                RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                  PETITIONER      CK 230215-OM


          On May 22, 1991, the above-named tenant,  filed  a  petition  for
          administrative review of an order issued on May 15,  1991,  by  a
          Rent Administrator concerning the  housing  accommodation,  known
          as Apartment E-8, 380 92nd Street,  Brooklyn,  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  November  25,  1988  by
          filing an application for a rent increase based on major  capital
          improvements, to wit - replacement windows at  a  total  cost  of

          On February 23, 1989,  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 tenant did not file an objection to the  owner's  application
          although afforded the opportunity to do so.

          On May 15, 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
          reversal of the Rent Administrator's order  and  objects  to  the
          retroactive increase because she is a senior citizen.

          In answer to the tenant's petition the  owner  alleges  that  the

          FE 210350-RT
          tenant does not have a valid rent increase exemption certificate.

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

          Rent increases for major capital improvements are  authorized  by
          Section 2522.4 of the Rent Stabilization Law for rent  stabilized
          apartments.  Under rent stabilization, the improvement mu t  gen-
          erally be building-wide; depreciable under the  Internal  Revenue
          Code, other than for ordinary repairs; required  for  the  opera-
          tion, preservation, and maintenance of the structure; and replace 
          an item whose useful life has expired.

          The record in the instant case indicates that the owner correctly 
          complied with the application  procedures  for  a  major  capital
          improvement and the  Rent  Administrator  properly  computed  the
          appropriate rent increases.  The tenant has not established  that
          the increase should be revoked.

          The tenant is advised that only those tenants with a valid Senior 
          Citizen Rent Increase Exemption (SCRIE) are exempt from that por 
          tion of the MCI increase which causes the rent to exceed  1/3  of
          the total household disposable income.   This  exemption  applies
          to installations completed after September 1, 1986.

          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
                                                Deputy Commissioner


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