AJ 210483-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
                                
                                
                                
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IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
APPEAL OF                               DOCKET NO.:
                                        AJ-210483-RO
       HERMAN OBERLANDER,
                                        DRO DOCKET NO.:
                        PETITIONER      AB-210169-R
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  ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
               AND MODIFYING ADMINISTRATOR'S ORDER
                                
                                
On  October  27, 1986, the above named petitioner-owner  filed  a
Petition  for Administrative Review against an order of the  Rent
Administrator  issued  October 15,  1986.   The  order  concerned
housing  accommodations known as Apartment 5-D at 252  South  4th
Street,  Brooklyn, New York.  The Administrator denied  the  ten-
ant's rent overcharge complaint.

The  Commissioner  has  reviewed the  record  and  has  carefully
con-sidered  the evidence relevant to the issues raised  by  this
administrative appeal.

The  tenant  commenced this proceeding by the filing  of  a  rent
overcharge  complaint.  The owner duly answered and supplied  the
proper  rent  history.   The Administrator  determined  that  the
initial legal regulated rent was $268.00 as of April 1, 1984. The
Administrator further found that the rent was lawfully  increased
to  $317.55  by  the  application of  two  Rent  Guideline  Board
increases  and the addition of a Major Capital Improvement  (MCI)
rent increase ordered in (Docket No. OM 005924).

On  appeal,  the owner takes issue with the method by  which  the
Administrator  found that the initial legal  regulated  rent  had
been  increased.   While agreeing that the  tenant  was  properly
charged  $317.55 on January 26, 1986, the owner argues  that  the
MCI  increase described above should not have been used in making
that calculation.  Petitioner contends that the MCI increase  was
to  be  added  to the $317.55 rent at a later time.   The  tenant
filed no response.

After  a  careful  review  of  the evidence  in  the  record  the
Com-missioner grants the petition to the extent of modifying  the
Administrator's order.

A check of DHCR records reveals that petitioner is correct in his
assertion  that  the  Administrator erred in  including  the  MCI
cal-culation in increasing the initial legal regulated rent.  The
MCI  increase  order was issued on November 29, 1985,  after  the
owner  and  tenant entered into a renewal lease for the  two-year
term  commencing January 1, 1986, at a monthly rent  of  $317.55.
That amount represents a lawful increase of 6% over the April  1,
1984 registered rent of $268.00 for the one-year lease commencing
January  1,  1985,  ($284.08) plus a  6  1/2%  increase  for  the
two-year  renewal commencing January 1, 1986, plus a $15.00  rent
supplement order.

The  tenants  took  occupancy pursuant to a one-year  lease  com-
mencing  February 1, 1985 and expiring January  31,  1986,  at  a
monthly rent of $320.00.

The  owner  was served with a copy of the complaint and  was  re-
quested  to  submit rent records to prove the lawfulness  of  the
rent being charged.

The  owner had registered the April 1, 1984 rent of $275.00  with
the  DHCR.   This was established as the Initial Legal Registered
Rent,  in  accordance with Section 2521.1(c) of the current  Rent
Stabilization Code.  The MCI rent increase is in addition to  the
$317.55.  The Administrator's order is, therefore modified to  so
reflect.  In all other respects that order is affirmed.


THEREFORE, pursuant to the Rent Stabilization Law and Code, it is
ORDERED, that this petition be, and the same hereby is granted to
the  extent  of modifying the Administrator's order in  a  manner
consistent  with this order and opinion.  In all  other  respects
that order is hereby affirmed.

ISSUED:




ELLIOT SANDER
                                         Deputy Commissioner
    

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