Adm. Review Docket Number: ARL 06597.U
                                 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

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        IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
        APPEAL OF                              DOCKET NO.: ARL 06597-U  
                                            :  
             ALBERT EDWARDS,                   DISTRICT RENT ORDER
                                               DOCKET NO.: T/A 11522    
                              PETITIONER    : 
        ------------------------------------X                           
          
           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

        On  December  2,  1985  the  above-named  petitioner-owner  filed  a
        Petition for  Administrative  Review  against  an  order  issued  on
        October 29, 1985 by the Rent Administrator, 2  World  Trade  Center,
        New York, N.Y., concerning housing accommodations known as 522  West
        145th Street, New York, N.Y., Apartment A.

        The Commissioner notes that this proceeding was initiated  prior  to
        April  1,  1984.   Section  2526.1(a)  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 of  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 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  August  19,  1983  by  the  tenant
        filing a  fair  market  rent  adjustment  application.   The  tenant
        indicated that she took occupancy of the subject apartment  pursuant
        to a lease commencing October 18, 1982 and ending October  17,  1984
        at a monthly rental of $230.00.  The tenant further  indicated  that
        she did not receive an Initial Legal  Regulated  Rent  Notice  (DC-2
        notice) from the owner.

        The owner was served with a copy of the application and directed  to
        submit  comparability  data.   In  response,  the  owner   submitted
        information for apartments in the "A" line of the subject building.

        In Order Number CTA 0561, the  Rent  Administrator  established  the
        fair  market  rent  at  $84.57  effective  October  18,  1982,   the
        commencement date of the initial rent stabilized  lease.   The  Rent
        Administrator determined that the owner had not submitted sufficient 
        comparability data and, based thereon, determined  the  fair  market
        rent based solely on the Special Fair Market Rent  Guidelines.   The
        Rent Administrator further determined that the owner  had  collected
        excess rent in the amount of $6,001.80 through November 17, 1985 and 
        directed the owner to refund the excess rent to the tenant.
        In this petition, the owner contends  that  when  he  purchased  the
        subject building at a public auction in 1977 the rents has been  set







        Adm. Review Docket Number: ARL 06597.U
        by the City of  New  York,  that  since  the  purchase  the  subject
        apartment has been occupied by several different  tenants  and  that
        the rent charged the subject tenant was proper.

        In response to the petition, the tenant asserts, in substance,  that
        the owner has made false allegations.

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

        Section 26-513 of the Rent Stabilization Law provides  in  pertinent
        part that  fair  market  rent  adjustment  applications  are  to  be
        determined by the use of special fair market rent  guidelines  order
        promulgated by the New York City Rent Guidelines Board  and  by  the
        rents generally  prevailing  in  the  same  area  for  substantially
        similar  housing  accommodations.   In  order  to  determine   rents
        generally prevailing in the  same  area  for  substantially  similar
        housing accommodations, it is Division policy  to  allow  owners  to
        submit the required comparability data.  In  cases  where  an  owner
        fails to submit the required comparability  data,  the  fair  market
        rent is determined solely on the basis of the  special  fair  market
        rent guidelines order.  Section 26-513 further provides  that  where
        it is determined that the rent charged is  in  excess  of  the  fair
        market rent, the Commissioner shall order a  refund  of  any  excess
        rent paid since January 1, 1974 or the date of commencement  of  the
        tenancy, whichever is later.

        In this case, the owner did not produce any evidence to show that he 
        had properly served a DC-2 notice upon the first  stabilized  tenant
        of the subject apartment although afforded the opportunity to do so. 
        Further, the owner has not submitted any evidence in support of  its
        contention on appeal that the subject building  was  purchased  from
        the City of New York.  Accordingly, the Rent Administrator  properly
        accepted the tenant's fair market rent appeal and properly  set  the
        fair market rent in accordance with the Rent Stabilization  Law  and
        DHCR procedure.

        Because  this  determination  concerns  lawful  rent  only   through
        November 17, 1985, the owner is cautioned to adjust subsequent rents 
        to an amount no greater than  that  determined  by  this  Order  and
        Opinion and to register  any  adjusted  rent  with  this  Order  and
        Opinion being given as explanation for the adjustment.   A  copy  of
        this Order and Opinion is being sent to the tenant now in occupancy.

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








        Adm. Review Docket Number: ARL 06597.U


        ORDERED, that this petition be, and the same hereby is, denied,  and
        the Rent Administrator's order be, and the same hereby is, affirmed.

        ISSUED:
                                                                      
                                        ELLIOT SANDER
                                        Deputy Commissioner
    

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