DOC. NO. AJ 410376-RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                               DOCKET NO. AJ 410376-RO
                    DIGBY MANAGEMENT CO., &            DISTRICT RENT ORDER
                    FIRST SUTTON ASSOCIATES,    :   DOCKET NO.
                                    PETITIONERS :        L-3110045-RT

                                    ADMINISTRATIVE REVIEW

            On October 17, 1986 the above-named petitioner prior and current owners 
            filed a Petition for Administrative Review against an order issued on 
            September 15, 1986 by the Rent Administrator, 92-31 Union Hall STreet, 
            Jamaica, New York concerning housing accommodations 
            known as 419 East 57th Street, New York, New York, Apartment 14C.

            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 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 commenced on March 20, 1984 by the tenant filing 
            a complaint of rent overcharge.  The tenant took occupancy of the 
            apartment pursuant to a lease commencing January 15, 1974 and 
            expiring September 30, 1976 at a monthly rental of $650.00.

            The current owner was served with a copy of the complaint and 
            directed to submit complete rental records.  In response the owner 
            submitted a copy of a Landlord's Report of Eligibility for Decontrol 
            indicating that the subject apartment became decontrolled on October 
            1, 1968 and copies of leases dating from July 14, 1972.

         In Order No. CDR 22,130, the Rent Administrator established the lawful 

         DOC. NO. AJ 410376-RO
         stabilized rent, determined that the tenant had been overcharged in the 
         amount of $33,698.60, including interest and directed that the 
         overcharge amount be refunded to the tenant.

         In this petition the prior and current owners contend that the subject 
         apartment was decontrolled in 1968 and remained unregulated until it 
         became rent stabilized pursuant to the Emergency Tenant Protection Act 
         on the base date of June 30, 1974, that the Rent Administrator's 
         calculations were incorrectly based on an earlier base date, that there 
         is no overcharge, and that in the event an overcharge is found, it 
         should be allocated between the prior and current owners.

         In answer to the petition, the tenant asserts that the owner did not 
         comply with decontrol requirements by properly executing a lease with 
         or offering a lease to the tenant then in occupancy.

         The Commissioner is of the opinion that this petition should be 

         A review of the record reveals that the subject apartment was 
         decontrolled pursuant to Section 2f(15) of the Rent and Eviction 
         Regulations.  Regarding the tenant's assertion that the owner did not 
         comply with decontrol requirements, Section 2f(15) of the Regulations 
         provides, in pertinent part, that where a lease was not executed or 
         offered within certain specified time periods, the apartment continued 
         to be subject to rent control until October 1, 1970.  In this case, 
         there is no evidence that the owner executed or offered a lease within 
         the specified time periods.  Accordingly, the Commissioner finds that 
         the subject apartment continued to be subject to rent control until 
         October 1, 1970 when it became decontrolled, although the prior rent 
         controlled tenant remained in occupancy until sometime in December 1973 
         pursuant to a lease commencing October 1, 1972.  The subject apartment 
         then became subject to rent stabilization pursuant to the Emergency 
         Tenant Protection Act on June 30, 1974.

         The record shows that the lawful stabilized rent for the subject 
         apartment was computed based on an October 1, 1972 base date.  
         Accordingly, the Commissioner has recomputed the lawful stabilized rent 
         from the June 30, 1974 base date as indicated on the chart attached 
         hereto and made a part hereof and has found that no rent overcharge 

         If there are arrears due to the owner as a result of this 
         determination, the tenant may pay the arrears to the owner in twenty- 
         four equal monthly installments.

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

         ORDERED, that this petition be, and the same hereby is, granted, and 

         DOC. NO. AJ 410376-RO
         the Rent Administrator's Order be, and the same hereby is, revoked and 
         it is found that no rent overcharge occurred.


         Deputy Commissioner


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