DOCKET NUMBER: AL 410515-RO
                                 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 410515-RO
                                         :  
                                            DRO DOCKET NO.: L 3116364-R
                                                            CDR 27,260
     OMEGA MANAGEMENT      PETITIONER    : 
     ------------------------------------X                             

           ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

     On December 24, 1986, the above named petitioner-owner  filed  a  Petition
     for Administrative Review against an order issued on November 20, 1986, by 
     the District Rent Administrator, 10 Columbus Circle, New York,  New  York,
     concerning housing accommodations known as Apartment 10G,  241  East  76th
     Street, New York,  New  York,  wherein  the  District  Rent  Administrator
     determined that the owner had overcharged the tenant.

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

     The applicable sections of the law are Section 2521 of  the  current  Rent
     Stabilization Code and Section 20A of the former 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 commenced on March 30,  1984,  by  the  tenant's  (Ann
     Marie Stanton) filing of a rent overcharge complaint  with  the  New  York
     City Conciliation and Appeals Board (CAB),  the  agency  formerly  charged
     with enforcing the Rent Stabilization Law, wherein the tenant stated  that
     she moved from apartment 4A to apartment 10G of the  subject  building  on
     February 28, 1975, and questioned the rental amounts for both apartments.

     In its answer to the tenant's complaint, the  owner,  through  its  former
     attorney, contended in substance that with regard to the  August  1,  1972
     rental of apartment 4A, the vacancy  factor  had  no  restriction  due  to
     vacancy destabilization, and with regard to the March 1,  1975  rental  of
     apartment 10G, the owner was entitled to a 1/2% stabilizer  rent  increase
     pursuant to Guidelines 6a & 6c.  The owner  also  contended  that  it  was
     informed by an employee of the Division of Housing and  Community  Renewal

     (DHCR) that the tenant's complaint did not require  the  owner  to  submit
     leases for apartment 10G.  The owner submitted along  with  its  answer  a






          DOCKET NUMBER: AL 410515-RO
     copy of the tenant's three year vacancy lease for apartment 10G commencing 
     March 1, 1975.

     On June 10, 1986, the owner's former attorney  was  served  with  a  final
     notice of pending default demanding copies of all leases for apartment 10G 
     covering the entire period from the base rent date to the  date  on  which
     the complaining tenant took occupancy and  documentation  to  substantiate
     the base rent date if the base rent date was after June 30, 1974.

     In Order Number CDR 27,260 issued November 20,  1986,  the  District  Rent
     Administrator determined that the owner had failed to  submit  a  complete
     rental history for apartment 10G, that the  tenant  had  been  overcharged
     since March 1, 1975, and accordingly directed the owner to refund  to  the
     tenant $4,979.11.

     In this petition, the owner contends in substance that the  District  Rent
     Administrator's order is incorrect and should be reversed because:

          1) the owner was denied an adequate opportunity to submit the 
             rental history for the subject apartment;
          2) the owner's former attorney, instead of the owner, was 
             notified of the pending default, but failed to take 
             appropriate action;
          3) had the owner been notified, it would have submitted all the
             leases for the subject apartment; and 
          4) the rental history for the subject apartment reveals that no
             overcharge occurred. 

     In support of these contentions,  the  owner  submits  a  complete  rental
     history for the subject apartment covering the period  from  September  1,
     1967 through February 28, 1988.

     The tenant did not submit a response to the owner's petition.

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

     A review of the record in the instant case discloses that  the  owner,  in
     its answer to the tenant's complaint,  stated  that  it  was  told  by  an
     employee of DHCR that the  leases  for  the  subject  apartment  were  not
     needed.  Due to this misinformation,  coupled  with  the  facts  that  the
     tenant had questioned the rents of two different apartments and  that  the
     owner had changed attorneys prior to the issuance of  the  Administrator's
     order and apparently was never apprised of the final notice sent by  DHCR,
     the Commissioner accepts the rental history  submitted  by  the  owner  on
     appeal and has recalculated the lawful stabilized  rents  on  the  amended
     rent calculation chart attached hereto and made a part hereof.   As  shown
     on the chart, the tenant has not been overcharged.

     The Commissioner notes that the tenant's  three  year  vacancy  lease  for
     apartment 4A commenced on August 1, 1972  during  the  period  of  vacancy
     destabilization.  Accordingly, the base rent date for apartment 4 x  A  is
     June 30, 1974 with an initial legal regulated rent of $250.00.  Thus,  the
     tenant was not overcharged during her occupancy of apartment 4A.

     If the owner has already complied with the Rent Administrator's order  and
     there  are  arrears  due  to  the  owner  as  a  result  of  the   instant
     determination, the tenant shall be permitted to pay  off  the  arrears  in
     twenty-four equal monthly installments.  Should tenant  vacate  after  the
     issuance of this order or have already  vacated,  said  arrears  shall  be






          DOCKET NUMBER: AL 410515-RO
     payable immediately.

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

     ORDERED, that this petition be, and the same hereby is, granted, and  that
     the District Rent Administrator's  order  be,  and  the  same  hereby  is,
     revoked.  The lawful stabilization rents are established on  the  attached
     chart which is fully made a part of this order.

     ISSUED:













                                                                   
                                             ELLIOT SANDER
                                          Deputy Commissioner




                                                   
    

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