AJ 410344 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 410344 RO

                R. W. KERN, INCORPORATED,
                                                  DRO DOCKET NO.: L 3110217-R

                                  PETITIONER
          ----------------------------------X                                   


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          On October 24, 1986, the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          October 20, 1986  by  a  Rent  Administrator  concerning  housing
          accommodations known as Apartment 36D at 211  West  56th  Street,
          New York,  New  York  wherein  the  District  Rent  Administrator
          determined that the tenant had been overcharged in the amount  of
          $275.73, including excess security and  interest  on  overcharges
          collected since April 1, 1984.

          The Commissioner notes that this proceeding was  initiated  prior
          to April 1, 1984.  Sections 2526.1(a)(4)  and  2521.1(d)  of  the
          Rent Stabilization Code (effective May 1,  1987)  governing  rent
          overcharge  and  fair  market  rent  proceedings   provide   that
          determination of these matters be based  upon  the  law  or  code
          provisions in  effect  on  March  31,  1984.   Therefore,  unless
          otherwise  indicated,  reference  to   Sections   of   the   Rent
          Stabilization Code (Code) contained herein are  to  the  Code  in
          effect on April 30, 1987.

          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 administrative appeal.

          This proceeding was originally commenced by the filing of a  rent
          overcharge complaint by the tenant on March 28, 1984.


          The  tenants  took  occupancy  pursuant  to  a  one  year   lease
          commencing March 1, 1983, and expiring February 28,  1984,  at  a
          monthly rent of $1,138.38.  The complaint also  stated  that  the
          tenant had assumed tenancy when his roommate, who was  the  prior
          tenant, vacated the apartment.

          The owner was served  with  a  copy  of  the  complaint  and  was
          directed to submit a complete lease  history,  to  establish  the
          lawfulness of the rent being charged.  The  owner  complied  with
          this request.






          AJ 410344 RO

          The subject-premises became subject  to  the  Rent  Stabilization
          Code in accordance with Section 421-a of the New York State  Real
          Property Tax Law.  The initial tenancy of the premises  commenced
          on October 1, 1978, under a two-year lease at a monthly  rent  of
          $635.00.

          In Order Number L 3110217 R, issued on October 20, 1986, the Rent 
          Administrator determined that the  complaining  tenant  had  been
          overcharged in the amount of $275.73, including  excess  security
          and interest on overcharges collected since April 1,  1984.   The
          lawful rent as of the effective date of the order was  determined
          as $1,187.73, which was $9.60 in  excess  of  the  rent  actually
          charged the tenant.

          In its petition dated October 20, 1986,  the  owner  amended  the
          Administrator's  rent  calculations  chart  to  include   various
          increases of the lawful stabilized rent.  Petitioner also changed 
          the effective date of the initial lease to October 1, 1978,  from
          June  1,  1978.   As  a  result,  petitioner  proposes  that  all
          overcharges be eliminated, and that the final lawful rent  stated
          in the order be increased to $1,200.29 from $1,187.73.

          The Commissioner is of the opinion that this petition  should  be
          denied.

          The petitioner's calculations do not conform to the guidelines or 
          to the provisions of the Rent Stabilization Code.   It  is  noted
          that the petitioner incorrectly  calculated  the  prior  tenants'
          vacancy lease effective March 1, 1980, by using a  base  rent  of
          $724.33, while the correct base is $648.97, which is the initial, 
          or base, rent of $635.00 plus the first 2.2% increase  under  the
          421-a program.  Since the petitioner's calculations fail to  make
          this adjustment, its proposed lease  history  must  be  rejected.
          The overcharges and lawful rent determined by  the  Administrator
          are sustained.




          THEREFORE, in accordance with  the  Rent  Stabilization  Law  and
          Code, it is

          ORDERED, that the owner's petition be, and the  same  hereby  is,
          denied, and that the  Administrator's  order  be,  and  the  same
          hereby is, affirmed.



          ISSUED:
                                                  ------------------------
                                                  ELLIOT SANDER
                                                  Deputy Commissioner
           
             
                                          
    

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