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                                  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
          APPEAL OF                            ADMINISTRATIVE REVIEW
                                               DOCKET NO.:  AL 110140-RO
                    KRAUS MANAGEMENT,
                                               DRO DOCKET NOS.: Q-3121488-R
                                                                CDR 25350
                                               TENANT:  RONALD RUBIN
                                 PETITIONER
          ----------------------------------X


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                      IN PART 


          On November 26, 1986 the above  named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          October 27, 1986 by the District Rent Administrator,  10 Columbus 
          Circle, New York,  New  York  concerning  housing  accommodations
          known as Apartment A at 69-27 136th Street,  Flushing,  New  York
          wherein the District Rent Administrator determined that the owner 
          had overcharged the tenant.

          The  issue  in  this  appeal  is  whether   the   District   Rent
          Administrator's order was warranted.

          The applicable sections of the Law  are  Section  26-516  of  the
          Rent Stabilization Law and Sections 2522.4(a)  and  2526.1(a)  of
          the Rent Stabilization Code.

          The Commissioner has reviewed all of the evidence in  the  record
          and has carefully considered that portion of the record  relevant
          to the issue raised by the administrative appeal.

          This proceeding was originally commenced by the filing in  March,
          1984 of a rent overcharge complaint by the tenant,  in  which  he
          stated that he had commenced occupancy on December 1, 1983  at  a
          rent of $542.24 per month.


          The owner was served  with  a  copy  of  the  complaint  and  was
          requested to submit rent records to prove the lawfulness  of  the
          rent being charged.   In  answer  to  the  complaint,  the  owner
          submitted a rental history from the base date.  While  indicating
          that the Guidelines would have allowed  the  complaint's  vacancy
          rent to increase only to $376.41 rather than $542.24,  the  owner
          included the order  numbers  of  five  Division  of  Housing  and
          Community Renewal (DHCR) orders granting rent increase for  Major
          Capital Improvements (MCI's).  Because DHCR orders are filed  and






          AL 110140 RO
          indexed  by  docket  number  rather  than   order   number,   the
          Administrator did not locate or use those orders  in  calculating
          the lawful rent.

          In an  order  issued  on  October  26,  1986  the  District  Rent
          Administrator determined that the tenant had been overcharged  in
          the amount of $3,329.94 as of November 30, 1985, and directed the 
          owner to refund such overcharge to  the  tenant  as  well  as  to
          reduce the rent.

          In this petition, the owner contends in substance that there  was
          no rent overcharge in  that  the  District  Rent  Administrator's
          order failed to take into account the M.C.I. increases.  With its 
          petition the owner has enclosed copies of the five M.C.I. orders.

          The Commissioner is of the opinion that this petition  should  be
          granted in part.

          The owner has now provided copies of DHCR orders  which  were  in
          the DHCR's files and which the owner notified  the  Administrator
          of.  In response to an April 2, 1991 request to both parties  the
          owner has submitted monthly records of the tenant  for  rent  due
          and  rent  paid  beginning  February,  1984.   Using  these,  the
          Commissioner has recalculated the lawful stabilization rents  and
          the amount of overcharge.  They are set forth on the amended rent 
          calculation  chart  attached  hereto  and  made  a  part  hereof.
          Because the tenant has vacated, the full  amount  of  the  M.C.I.
          increases are  applicable  to  the  next  tenant,  without  being
          subject to  the  6%  per  year  limitation  on  collectible  rent
          increases  applicable  if  the  complainant   had   remained   in
          occupancy.

          Because this order, similarly to the order  appealed,  determines
          the lawful rents only  through  March  31,  1985,  the  owner  is
          cautioned to adjust the  rents  in  leases  after  that  date  to
          amounts no greater than that determined by this  order  plus  any
          lawful increases, and to register any adjusted  rents  with  this
          order being given as the reason for the adjustment.  Because  the
          tenant herein has vacated, a copy of this order is being sent  to
          the current tenant.

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

          ORDERED, that this petition be, and the same hereby  is,  granted
          in part and that the District Rent Administrator's order be,  and
          the same hereby is, modified in acordnace  with  this  Order  and
          Opinion.  The  lawful  stabilization  rents  and  the  amount  of
          overcharge are established on the attached chart, which is  fully
          made a part of this order.  The total overcharge  is  $559.67  as
          of March 31, 1985.


          ISSUED:

                                                  ------------------------
                                                  ELLIOT SANDER
                                                  Deputy Commissioner
           






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