AK 110138 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

          APPEAL OF                               DOCKET NO.: AK 110138 RO

                                                  DRO DOCKET NO.: Q 3108528 R


                           REMANDING PROCEEDING ON APPEAL

          On November 10, 1986 the above-named  petitioner-owners  filed  a
          Petition for Administrative Review against  an  order  issued  on
          October 21, 1986 by the Rent Administrator, 10  Columbus  Circle,
          New York, New York concerning housing accommodations known as
          14-44 31st Avenue, Long Island City, New York, Apartment 3R.

          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 on March 29, 1984 by the 
          tenant  filing  a  complaint  of  rent  overcharge.   The  tenant
          indicated that  she  took  occupancy  of  the  subject  apartment
          pursuant to a lease commencing June 1, 1979 and expiring May  31,
          1980 at a monthly rent of $250.00 and  asserted  that  the  prior
          tenant was rent controlled.

          The owners were served with a copy of the complaint and  directed
          to submit a complete rental history.   In  response,  the  owners
          submitted copies of leases dating from June 1,  1979  and  stated
          that the subject apartment was vacant when  they  took  title  on
          March 9, 1979 (the date of the closing) and that the prior  owner
          did not disclose the rental history of the subject apartment.

          The owners were subsequently directed to submit documentation  to
          substantiate  the  base  date  for  the  subject  apartment.   In
          response the owners stated, among other things, that they did not 
          have either the DC-2 Notice (Notice of  Initial  Legal  Regulated
          Rent) or the  report  of  statutory  decontrol  for  the  subject

          In Order No. CDR 24,949 the Rent  Administrator  established  the
          lawful stabilized rent based on the owner's failure to  submit  a
          complete rental history for the subject apartment and directed  a

          AK 110138 RO
          refund of $2,393.88, including interest on overcharges  collected
          after April 1, 1984, to the tenant.

          In their petition, the owners contend, in  substance,  that  they
          did submit a complete rental history of the subject apartment  to
          the Division of Housing and Community Renewal  (DHCR),  that  the
          tenant failed to raise an overcharge  complaint  until  1984  and
          failed to document the prior tenant's alleged status and  rental,
          that the Rent Administrator's computations are incorrect and that 
          there is no overcharge.

          In response, the tenant asserts, among  other  things,  that  the
          owner did not submit a complete rental history as  requested  and
          maintains that the prior tenant was rent controlled.

          The Commissioner is of the opinion that this petition  should  be
          granted and that the proceeding should be remanded  so  that  the
          tenant's complaint can be processed as a fair  market  adjustment
          application rather than a rent overcharge complaint.

          In the original overcharge complaint the tenant alleged in effect 
          that she is the first  rent  stabilized  tenant  in  the  subject
          apartment.  Further, the owners have advised the DHCR  that  they
          are unable to provide either proof of decontrol  of  the  subject
          apartment or proof of service of the DC-2  notice  on  the  first
          rent stabilized tenant.  Therefore, the tenant's  complaint  must
          be treated as a fair market rent adjustment application since  in
          her complaint she was questioning  the  initial  legal  regulated

          Accordingly, this proceeding  is  being  remanded  to  treat  the
          tenant's complaint as a fair market rent  adjustment  application
          filed prior to April 1, 1984.  All parties are to be notified and 
          given a chance to submit any evidence deemed  necessary  in  such
          remanded proceeding.

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

          ORDERED, that this petition be, and the same hereby is,  granted,
          to  the  extent  of  remanding  this  proceeding  to   the   Rent
          Administrator for further  processing  in  accordance  with  this
          order and opinion.  The automatic stay of so  much  of  the  Rent
          Administrator's order as directed a refund  is  hereby  continued
          until a new order is  issued  upon  remand.   However,  the  Rent
          Administrator's determination as to the rent is  not  stayed  and
          shall remain in effect, except for any  adjustments  pursuant  to
          lease renewals, until the Rent Administrator issues a  new  Order
          upon remand.

                                                  ELLIOT SANDER
                                                  Deputy Commissioner

          AK 110138 RO

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