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

     APPEAL OF                              DOCKET NO.: AJ 410263-RO
                                            DISTRICT RENT ADMINISTRATOR'S
     509 EAST 88TH STREET                   DOCKET NO.: 1600
     CORPORATION.          PETITIONER    : 


     On  October  10,  1986,  the  above-named  owner  filed  a  petition   for
     administrative review of an order  issued  on  September  23,  1986  by  a
     District Rent Administrator concerning the housing accommodation known  as
     Apartment 3A, 509 East 88th Street, New York, New York, wherein the  owner
     was directed to roll back the rent and to refund overcharges of  $1042,47,
     including excess security.

     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.
     On June 18, 1984, the subject tenants, Lorraine and Leonard Gardner, filed 
     an objection to  the  Rent/Services  registration  with  the  Division  of
     Housing and Community Renewal (DHCR), stating, inter alia, that it  was  a
     fair market rent appeal.

     On October 5, 1984, the D.H.C.R. served a copy of the  tenant's  complaint
     upon the owner and informed the owner,

               If you or  a  previous  owner  served  a  DC-1  or  DC-2
               Notice of Initial Legal  Regulated  Rent  on  the  first
               stabilized  tenant  or  subsequent   tenant(s),   please
               supply the Division of  Housing  and  Community  Renewal
               with a  copy  of  such  notice  plus  proof  (certified)
               mailing.  However, if you do not have a copy of  a  DC-1
               or DC-2 Notice, you must submit a  copy  of  all  leases
               on subject apartment in effect  on  or  after  June  30,

     On October 11, 1984  the  owner  interposed  an  answer  to  the  tenant's
     complaint attaching prior leases for the subject apartment.

     On March 5, 1985 the owner was directed to submit  a  floor  plan  of  the
     subject apartment in answer to the tenant's room count challenge.

     On March 11, 1985 the owner submitted the floor plan.

     On December 9, 1985  the  owner  was  directed  to  submit  the  following

     DOCKET NUMBER: AJ 410263-RO

               1. Status of the above apartment.

               2. Submit R-42, Statutory Decontrol Order.

               3. M.B.R.'s, and M.C.R.

               4. Registration card in the subject apartment.

               5. Fuel cost adjustment.

     On January 7, 1986 the owner submitted the requested information.

     On May 12, 1986  the  Administrator  directed  the  owner  to  inform  the
     Division of the exact square footage of the kitchen.

     On May 19, 1986 the owner submitted the requested information.

     On June 19, 1986 the Administrator requested the owner to submit the lease 
     for the subject apartment for the period January 3, 1982  to  December  1,

     On July 10, 1986 the owner submitted the requested lease.

     The Administrator issued the order here under review on September 2,  1986
     finding inter alia  that  the  owner  had  failed  to  respond  with  "the
     necessary data," finding that the initial rent exceeded  the  fair  market
     rent, establishing the stabilized rent and directing  the  owner  to  roll
     back the rent and refund excess rent and security paid by the tenant.

     In its petition for administrative review the owner requests  reversal  of
     the administrator's order alleging inter alia.

               ...when  your  office  requested  information  regarding
               this apartment we submitted same forthwith.   You  state
               at the bottom of Page 1 a  copy  of  the  Tenant's  Fair
               Market Rent Appeal was served on the owner and  to  date
               the  owner  has  failed  to  respond.   This  owner  has
               without  fail  answered  request  made  and  will  again
               produce, if required, every  evidence  that  such  reply
               was received and receipted by the requesting agency.

     The tenant interposed an answer in opposition to the owner's petition.

     After careful consideration the Commissioner is of the opinion  that  this
     proceeding should be  remanded  to  the  Rent  Administrator  for  further

     The Commissioner notes, given the owner's submission of  the  full  rental
     history of the subject apartment, that the "necessary data" which was  not
     before the Administrator, was the Notice of  Initial  Regulated  Rent  and
     proof of certified mailing to the first stabilized or subsequent tenant.

     During the proceeding under review the initial demand for information sent 
     to the owner on October 5, 1984 (cf.supra) was  answered  by  the  owner's
     submission of the rental  history.   Subsequent  to  this  submission  the
     administrator made no fewer than four separate demands for information yet 
     not once did he request that the  owner  submit  the  missing  data  (DC-2

     DOCKET NUMBER: AJ 410263-RO
     notice  and  proof  of  certified  mailing).   In  the  opinion   of   the
     Commissioner a reasonable owner who  is  complying  with  each  and  every
     Administrator's request for information would not have been on notice that 
     necessary data was lacking.   Although   the  administrator's  failure  to
     advise the owner of deficient submissions is not, per se, a denial of  due
     process, when coupled with the fact that four specific requests were  made
     of the owner for information and that certain specific information was not 
     requested (to wit information crucial to the owner's case) it becomes so.

     Moreover,  the  Commissioner  notes  that  the  fair  market  rent  appeal
     proceeding under review is subject  to  the  provisions  of  current  Rent
     Stabilization Code and that the owner was not afforded the opportunity  to
     submit comparability data pursuant to the provisions of Section 2522.3  of
     the Code.  The Division's failure to afford the owner such an  opportunity
     was also a denial of due process.

     Finally, the Commissioner notes that the Administrator did not,  prior  to
     issuance of the order under review, serve upon the owner a Summary Notice. 
     The Commissioner notes that it is standard procedure of this  Division  to
     serve such a summary notice on the owner when processing Fair Market  Rent

     In Nicholas v. Kahn, 47 Ny2d 24, 416  NYS  2d565,  the  Court  of  Appeals

               The cornerstone of administrative law  is  derived  from
               the principle  that  the  Legislature  may  declare  its
               will,  and  after  fixing  a  primary  standard,   endow
               administrative agencies with the power to  fill  in  the
               interstices in the legislative  product  by  prescribing
               rules  and  regulations  consistent  with  the  enabling

     A District Rent  Administrator  is  authorized  to  promulgate  rules  and
     regulations for the processing of tenant complaints.

     However, once those rules and regulations are promulgated it is  mandatory
     that the Division abide by  its  own  established  policy,  and  apply  it
     uniformly.  To  treat  one  case  differently  from  all  other  cases  is
     arbitrary and capricious as a matter of law.

     Accordingly, for all of the hereinabove-mentioned reasons the Commissioner 
     finds that the owner was denied due process in the proceeding under review 
     and that this proceeding should be remanded to the Rent Administrator  for
     re-processing of the tenant's fair market rent appeal.

     THEREFORE, in accordance with the Rent Stabilization Law and Code, and the 
     Emergency Tenant Protection Act of 1974, it is

     ORDERED, that this proceeding be, and the same hereby is, remanded to  the
     Rent Administrator to reprocess the tenant's fair market rent appeal.  The 
     previously issued order remains in full force and effect until a new order 
     is issued on remand.

     DOCKET NUMBER: AJ 410263-RO

                                                      ELLIOT SANDER
                                                    Deputy         Commissioner

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