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.: AL 110605-RO
                                         :  
      SHARON TOWERS REALTY,                 DRO DOCKET NO.: Q 3120285-R

                           PETITIONER    :  TENANT: JAMES KURASH
     ------------------------------------X                             


            ORDER AND OPINION MODIFYING COMMISSIONER'S PRIOR ORDER AND
                           OPINION AFTER RECONSIDERATION

     The   above-named   petitioner-owner   filed   a   timely   Petition   for
     Administrative Review against an order issued on December 4, 1986, by  the
     District  Rent Administrator, 92-31 Union Hall Street, known as  Apartment
     2S at 62-59 108th Street, Forest Hills, New York wherein the District Rent 
     Administrator determined that the tenant had been overcharged.

     By Order and Opinion issued on October 18, 1990, the Commissioner  granted
     the  owner's  petition  in  part  and  recalculated  the  tenant's  lawful
     stabilized rent from April 1, 1980.

     Thereafter,  by  letter  dated  October  29,  1990,  the  owner  requested
     reopening and reconsideration of the proceeding.  The owner asserted  that
     the Commissioner's finding  of  a  $7.05  overcharge  on  the  retroactive
     arrears collected by the owner pursuant to  a  major  capital  improvement
     (MCI) increase (Order  Number  CDR  00771)  was  incorrect  and  that  the
     Commissioner's calculation of the lawful stabilized  rent  for  the  lease
     period from December 1, 1984 to November 30, 1986  incorrectly  failed  to
     include the MCI increase as part of the base rent.

     By order issued on July 17, 1991, the  Commissioner  granted  the  owner's
     request  for  reconsideration  and  reopened  the  proceeding  due  to  an
     irregularity in a vital matter.  

     Review of the record indicates that the Commissioner's prior finding of an 
     overcharge of $7.05 on the retroactive  arrears  collected  by  the  owner
     pursuant to Order Number CDR 00771 was correct.  The MCI order in question 
     clearly states that the increase amount of .75% of the  August  1982  rent
     was to be effective December 1, 1982, i.e., the  increase  amount  was  be
     added to be lawful stabilized rent as of December 1, 1982 ad collected  as
     of  that  date.   The  owner's  calculations  indicates  that  the   owner
     improperly collected the increase as of  August  1,  1982  and  improperly
     compounded the increase for the lease commencing December  1,  1982.   The
     proper calculations of the increase amount and arrears follows:

               $275.70                 August 8, 1982 rent
                x.0075                 MCI increase CDR 00771
               $  2.07                 Amount of increase







          DOCKET NUMBER: AL 110605-RO
               $ 2.07                  Amount of increase
                x  23 months
               $ 47.61                 MCI arrears for the period 
                                       12/1/82 to 10/31/84

     It is noted that the electrical conversion decrease effective February  1,
     1983 did not affect the MCI increase for the lease term then in effect.

     The  Commissioner  therefore  affirms  an  overcharge  of  $7.05  on   the
     retroactive MCI arrears collected by the owner [$54.66  (amount  collected
     by the owner) - $47.61=$7.05].

     However, the  Commissioner  finds  that  the  Commissioner's  prior  order
     incorrectly failed to include the MCI increase as part of  the  base  rent
     for the lease commencing December 1, 1984.

     Recalculation of the lawful stabilized rent indicates that the tenant  was
     not overcharged on the lease amounts through December 31, 1986,  but  that
     the tenant was overcharged $7.05 in retroactive MCI  arrears  under  Order
     Number CDR 2,053, as indicated on the attached rental history chart.   The
     total amount of overcharge is $17.74.  The owner  is  directed  to  refund
     this amount to the tenant.

     Any arrears owed by the tenant as a result of this order may  be  paid  by
     the tenant in equal monthly installments over the course of  the  next  24
     months.  Should the tenant vacate  after  issuance  of  this  order,  said
     arrears shall be payable immediately.

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

     ORDERED, that the Commissioner's prior order and opinion be and  the  same
     hereby is modified to the extent hereinabove indicated.

     ISSUED:













                                                                   
                                             ELLIOT SANDER
                                          Deputy Commissioner




                                                   
    

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