Docket Number:  AJ-210191-RO

                                 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

     ------------------------------------X 
     IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
     APPEAL OF                              DOCKET NO.: AJ 210191-RO
                                         :  
       STATE FUNDING CORPORATION,           DRO DOCKET NO.: CDR 24,116
                                                            K 3106335-R
                           PETITIONER    :  OTHER PARTY: LARRY SAMUELS, (T)
     ------------------------------------X                           
       
      ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN PART  

     On October 16, 1986, the above named petitioner-owner filed a Petition for 
     Administrative Review against an order issued on October 7, 1986,  by  the
     Rent Administrator at 10 Columbus Circle, New York, New  York,  concerning
     the housing accommodations known as Apartment No. A-28 at 1213  Avenue  Z,
     Brooklyn, New York wherein the Administrator  established  the  stabilized
     rent and directed the owner to refund $1,490.83  including  interest  from
     April 1, 1984.  

     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 in the administrative appeal.

     This proceeding was originally commenced on March 31, 1984 by  the  filing
     of a complaint of rent overcharge with the New York City Conciliation  and
     Appeals Board (CAB, the agency formerly charged with  enforcing  the  Rent
     Stabilization Law) by the tenant.

     The owner submitted a rental history from the base date.

     On the chart attached to and made a part of the order,  the  Administrator
     established the stabilized rent.

     In its petition, the owner contends that the Administrator  erred  on  the
     rent calculation chart attached to the order by failing to acknowledge the 
     owner's entitlement to a 5% vacancy allowance and a $19.25 increase  under
     20C(1) under the tenant's initial lease.  The owner noted that  the  chart
     annexed to the Administrator's order showed that prior to the commencement 
     of the tenant's vacancy lease, the owner had collected less  that  15%  in
     vacancy allowances for the subject apartment pursuant to provisions of the 
     Rent Guideline Board Orders governing new tenancies commencing on or after 
     July 1, 1979.  The owner argues that under Guidelines 15, it was  entitled
     to  a  5%  vacancy  allowance  for  the  tenant's  first  lease,  but  the
     Administrator credited it with  no  vacancy  allowance.   The  owner  also
     asserts that it installed a new stove  and  refrigerator  in  the  subject
     apartment during the term of the  tenant's  vacancy  lease  and  therefore
     should have been credited below with a 20C(1) increase of $19.25.

     Although afforded the opportunity, the tenant has not interposed an answer 
     to the owner's petition.
     The Commissioner notes that Guidelines Order 15 reads, in pertinent  part,
     as follows:






          Docket Number:  AJ-210191-RO


                         Leases On Vacant Apartments
                    
                    Where a dwelling unit becomes vacant, the
                    levels of rent increase governing a new
                    tenancy commencing on or after October 1, 1983
                    and on or before September 30, 1984 are
                    as follows:

                              *    *    *    *

                    the same as those set forth herein for renewal
                    leases commencing during the period of this
                    Order plus 5% over rentals charged on
                    September 30, 1983, where additional levels
                    of rent increases (vacancy allowances)  
                    totalling more than 0% but less than 15%
                    have been charged for that unit pursuant to
                    provisions of the Rent Guidelines Board
                    Orders governing new tenancies commencing on
                    or after July 1, 1979 or;


     The Commissioner finds that the chart annexed to  the  order  below  shows
     that after July 1, 1979, the owner entered into a vacancy lease  with  the
     prior tenant and charged that tenant  a  5%  vacancy  allowance  plus  the
     Guidelines increase.

     Based on the above language, the Commissioner finds  that  the  owner  was
     entitled to a credit for a vacancy allowance  of  5%  under  the  tenant's
     vacancy  lease.   However,  the  Commissioner  finds  that  there  was  no
     substantiation (of the cost or installation of the items  upon  which  the
     owner seeks a 20C(1) increase) submitted below and there is none submitted 
     on appeal.  The Commissioner finds that, under  these  circumstances,  the
     Administrator properly denied the owner's claim for a 20C(1) increase  and
     that denial should not be revoked or modified on appeal.

     The Commissioner therefore finds that the overcharges to  be  refunded  to
     the tenant and the stabilized rent for  the  tenant's  vacancy  lease  and
     first renewal lease are as indicated on the chart annexed hereto and  made
     a part hereof.

     The Commissioner notes that the annual registration statement  filed  with
     respect to the subject apartment as of April 1, 1989  indicates  that  the
     apartment is exempt  from  registration  as  a  cooperative  apartment  or
     condominium.  The Commissioner also notes that a Division staff member was 
     advised by  the  New  York  Telephone  Company  information  service  that
     according to that company's current records, the tenant still  resides  at
     the  subject  premises.   The  Commissioner  therefore,  finds  that,   in
     accordance with well established Division practice, the tenant  is  deemed
     to be in the position of one who has vacated his, or her, rent  stabilized
     housing accommodation.

     The Administrator's order, as amended by this order and opinion, may, upon 
     the expiration of the period in which the owner may institute a proceeding 
     pursuant to Article 78 of the Civil Practice Law and Rules, be  filed  and
     enforced by the tenant in the same manner as a judgement.







          Docket Number:  AJ-210191-RO
     If  the  above  named  petitioner-owner  has  already  compiled  with  the
     Administrator's order and there are arrears due said owner as a result  of
     the  instant  determination,  the  tenant  shall  pay  said  the   arrears
     immediately.

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

     ORDERED, that this petition be, and the same hereby is, granted  in  part,
     and that the Administrator's order be, and the same hereby is, amended  in
     accordance with this order and opinion.

     ISSUED:




                                                                   
                                     ELLIOT SANDER
                                     Deputy Commissioner




                                                   
    

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