DOC. NO.: AJ 610011-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 610011-RO
                         HERMAN J. KARP,           :   D.R.O. DOCKET NO.
                                    PETITIONER  :             B 002004-R


            On October 3, 1986 the above-named petitioner-owner filed an 
            Administrative Appeal against an order issued on September 2, 1986 by 
            the District Rent Administrator, 92-31 Union Hall Street, Jamaica, New 
            York, concerning the housing accommodations known as 2241 Holland 
            Avenue, Bronx, New York, Apt. 2E.

            The Administrative Appeal is being determined pursuant to the 
            provisions of 9 NYCRR 2526.1.

            The issue herein is whether the District Rent Administrator properly 
            determined the tenant's complaint of rent overcharge.

            The District Rent Administrator's order, appealed herein, determined 
            that the tenant had been overcharged a total including excess 
            security and accrued interest, of $1,370.03 during the period from 
            November 1, 1984 through October 31, 1986; established the lawful 
            stabilization rent at $324.61 per month under the lease from November 
            1, 1984 through October 31, 1986; and directed the District Rent 
            Administrator to roll back the rent to the lawful stabilized amount 
            and to make full refund or credit to the tenant.

            It was noted in the order that the April 1, 1984 registered rent of 
            $286.00 per month, which was not timely objected to by the tenant 
            then in occupancy, was increased by 13.5% (6% guideline increase plus 
            7.5% vacancy allowance) under Rent Guidelines Board Order No. 16 for 
            a two year vacancy lease.

            On appeal, the petitioner-owner alleges, in substance, that the 
            amount of the rent overcharge was incorrectly calculated by the 
            District Rent Administrator.

            After a careful consideration of the entire evidence of record the 
            Commissioner is of the opinion that the administrative appeal should 
            be granted.

            Under Rent Guidelines Board Order No. 16, the prior lawful 

          DOC. NO.: AJ 610011-RO
            stabilization rent of $286.00 per month should have been increased by 
            16.5% (9% guideline increase plus 7.5% vacancy allowance) for the 
            tenant's two-year vacancy lease commencing on November 1, 1984 and 
            expiring on October 31, 1986.  The correct lawful regulated rent 
            under said lease was therefore $333.19 per month.  The rent charged 
            by the owner under said two-year vacancy lease was $375.00 per month, 
            for a monthly overcharge of $41.81 and a total overcharge, including 
            excess security and accrued interest, of $1,136.75 (excess security 
            of $41.81 and accrued interest of $91.50) during the period from 
            November 1, 1984 through October 31, 1986.  The District Rent 
            Administrator's order should be modified to correct this error in 

            The tenant may pay any arrears in rent arising as a result of this 
            order and opinion in six equal monthly installments.

            This order may, upon the expiration of the period in which the owner 
            may institute a proceeding pursuant to Article 78 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.

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

            ORDERED, that this administrative appeal be, and the same hereby is, 
            granted and the order of the District Rent Administrator be, and the 
            same hereby is, modified as provided hereinabove.  The order and 
            determination of the District Rent Administrator is hereby affirmed 
            in all other respects.


            ELLIOT SANDER
            Deputy Commissioner
          DOC. NO.: AJ 610011-RO


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