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 610744-RO
                                         :  
                                            DISTRICT RENT ADMINISTRATOR'S
       2965 DECATUR REALTY,                 DOCKET NO. B 002721-R
                           PETITIONER    : 
     ------------------------------------X                             


           ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


     On December 26, 1986, the above-named owner timely refiled a petition  for
     administrative review of an order issued on July 11, 1986  by  a  District
     Rent Administrator concerning housing accommodations known as 2965 Decatur 
     Avenue,  Apartment  6C,  Bronx,  New  York,  wherein   the   Administrator
     established that a rent overcharge occurred.

     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 in the petition for review.

     This proceeding was commenced on  July  1,  1985  upon  the  filing  of  a
     complaint of "rent overcharge  and/or  excess  security  deposit"  by  the
     tenant.  The tenant stated therein that she took occupan y  under  a  one-
     year lease on April  1,  1983.   The  tenant,  among  other  things,  made
     specific complaints about the security deposit and interest.

     On April 24, 1986 the Administrator requested that the tenant fill in  the
     gap in the rental history for the period of April 1,  1984  to  March  31,
     1985.  No reply to this notice was received.

     On May 8, 1986, the DHCR received the owner's answer.  The owner contended 
     that  no  overcharge  was  alleged,  and  it  responded  to  the  specific
     allegations in the tenant's complaint of excess security deposit only.  No 
     lease history was supplied.  Further, the owner alleged that  the  subject
     apartment contains four rooms not three as stated by the tenant.

     No further notices were sent to either party.

     In the order here under review, the Administrator regarded the  base  rent
     as the registered rent of $395.00, and assumed that the rent was in effect 
     until March 31, 1985.  Accordingly, the Administrator determined that  the
     lawful stabilization rent should have been  $418.70  from  April  1,  1985
     through March 31, 1986 and ordered a refund of $226.12 including  interest
     through March 31, 1986.

     In  its  petition  for  administrative  review,  the  owner  repeats   the
     contention that no overcharge  was  alleged  in  the  original  complaint.
     Assuming, arguendo, that an overcharge was alleged, the owner contends 






          DOCKET NUMBER: AL 610744-RO
     that it was inadequately notified, denied an opportunity  to  respond  and
     denied due process.  The owner alleges that  no  overcharge  occurred  and
     produces a complete rental history.  The owner  agrees  that  the  initial
     lease expired on March 31, 1984.  Further, it is  contended  that  because
     the initial registration was filed early by the owner,  it  reflected  the
     rent of the pre-April 1, 1984 lease.  In addition, the owner contends that 
     the tenant never executed the renewal lease until July 1984 and submits  a
     lease extension offer as documentation.  The owner contends that the  rent
     paid and received was $410.80 for the period of April 1, 1984 to March 31, 
     1985.

     The tenant interposed an answer to the petition for administrative  review
     in which he repeated his claim that the subject apartment  contains  three
     rooms.

     After careful consideration, the Commissioner is of the opinion that  this
     petition should be granted.

     A review of the record indicates that the notice sent  to  the  owner  was
     inadequate.   A  reexamination  of  the  entire  record,  now  before  the
     Commissioner, indicates that the  actual  rent  paid  by  the  tenant  and
     received by the owner on April 1, 1984 was $410.80.  From  the  undisputed
     evidence presented by the owner, all increases from  April  1,  1984  were
     within appropriate rent guidelines.

     The Commissioner notes that the issue of room-count  is  not  relevant  to
     this overcharge proceeding.

     THEREFORE, pursuant to the Rent Stabilization Law and Code, it is

     ORDERED, that this petition be, and the same hereby is, granted, and  that
     the Administrator's order be, and the same hereby is, revoked; and it is

     FURTHER  ORDERED,  that  if  the  owner  has  already  complied  with  the
     Administrator's order and there are arrears due to the owner as  a  result
     of the instant determination, the  tenant  may  pay  off  the  arrears  in
     twenty-four equal monthly  installments  commencing  with  the  next  rent
     payment date.  Should the tenant vacate after the issuance of this  order,
     said arrears shall be payable immediately.

     ISSUED:








                                                                   
                                            ELLIOT SANDER
                                         Deputy Commissioner



                                         
    

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