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
                                         :  
                                            DRO DOCKET NO.: CDR 24,116
       STATE FUNDING                                        K 3106335-R
       CORPORATION         PETITIONER    : 
     ------------------------------------X  OTHER PARTY: LARRY SAMUELS 


       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
     housing accommodations known as apartment 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 evidence 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 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  than  15%  in
     vacancy allowance 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  tenants'  vacancy  lease  and  therefore
     should have been credited below with a 20C(1) increase of $19.25.









          DOCKET NUMBER: AJ 210191-RO
     Although announced the  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:

                    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% per  rentals  charged  on
                    September 30,  1983,  where  additional  levels
                    of   rent   increases   (vacancy    allowances)
                    totaling 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 it 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 20(91) 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 if first 
     renewal lease are as indicated on the chart annexed hereto and made a part 
     hereof.

     This order may upon the expiration of the period in which  the  owner  may
     institute a proceeding pursuant to  Article  Seventy-eight  of  the  Civil
     Practice Law and Rules, be filed and enforced by the tenant  in  the  same
     manner as a judgment or not in excess of twenty percent thereof per  month
     may be offset against any rent thereafter due the owner.

     If the owner has already complied with the Administrator's order and there 
     are arrears due tot he owner as a result of the instant determination, the 








          DOCKET NUMBER: AJ 210191-RO
     tenant  may  pay  off  the  arrears  in  twenty-four  (24)  equal  monthly
     installment.  Should the tenant vacate after the issuance of  this  order,
     said arrears shall be payable immediately.

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

     ORDERED, that the 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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