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

          ------------------------------------X   ADMINISTRATIVE REVIEW
          APPEAL OF
                  Rein Realty Corp,
                                                  RENT ADMINISTRATOR'S
                               PETITIONER         DOCKET NO: EI230076OM


          The above-named petitioner-owner timely filed an Administrative 
          appeal against an order issued on December 23, 1991 by the Rent 
          Administrator (Gertz Plaza) concerning the housing accommodations 
          known as 691 Union Street, Brooklyn, New York, various apartments, 
          wherein the Rent Administrator determined that the owner was 
          entitled to a rent increase based on the installation of major 
          capital improvements (MCIs).

          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 this Administrative appeal.

          The issue herein is whether the Rent Administrator correctly 
          amortized the cost of the improvements.

          The Rent Administrator's order, appealed herein, granted a major 
          capital improvement rent increase predicated on the installation of 
          pointing/waterproofing and boiler/burner at a total approved cost 
          of $19,250.00. Said increase worked out to be $7.16 per room per 
          month, computed as follows: $19,250.00 divided by 84 months = 
          $229.17 divided by 32 rooms = $7.16.

          In this petition for Administrative Review, the owner requests 
          modification of the Administrator's order and contends, in 
          substance, that DHCR has made an error in law as the contracts for 
          the installations were signed on June 18, and June 21, 1990 and as 
          such the recoupment period of the costs of such improvements should 
          be sixty months not eighty-four months as stated in the 
          Administrator's order.

          Adm. Rev. Docket No. GA230086RO

          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that this Administrative appeal 
          should be granted.

          A review of the record discloses that the commencement dates of the 
          pointing/waterproofing and boiler/burner installations were July 18 
          and August 20, 1990 respectively and that the contracts/proposals 
          for said installations were signed on June 18 and June 21, 1990 

          The Commissioner notes that Section 26-405 of the Rent 
          Stabilization laws, Chapter 749 of the laws of 1990 amended the 
          period of amortization of the cost of major capital improvements 
          and other related expenditures to seven years from five years 
          unless physical work commenced or legally binding signed contracts 
          were entered into on or before June 28, 1990.

          In view of the fact that the said contracts were signed before June 
          28, 1990, the Commissioner finds that this proceeding should be 
          granted and that the owner was entitled to a rent increase of 
          $10.03 per room, per month, ($19,250.00 divided by 60 months = 
          $320.83 divided by 32 rooms = $10.03) instead of $7.16 as 
          previously approved.

          The tenants may pay any arrears in rent resulting from this order 
          to cover the period between the effective dates of the increase 
          (December 1, 1990 for rent stabilization apartments and January 1, 
          1992 for rent controlled apartments) as provided in the previous 
          order and the date of issuance of this order of the Commissioner in 
          12 equal monthly installments subject to the statutory limitation 
          on collectibility of 6% (of the 9/90 rent roll) for rent stabilized 
          apartments and 15% (of the 12/91 rent roll) with respect to rent 
          controlled apartments.

          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          and the New York City Rent and Eviction Regulations, 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; and that  the rent of the rent stabilized and rent 
          controlled apartments be, and the same hereby are further increase 
          as hereinabove provided subject to the limitation on collectibility 
          set forth herein.


                                                   JOSEPH A. D'AGOSTA
                                                   Deputy Commissioner


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