BL410275RO

                                  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.BL410275RO
                                              :  DRO DOCKET NO. L3110108R
               PARK WEST MANAGEMENT CORP.        TENANT: ALAN APPLEBAUM

                                PETITIONER    : 
          ------------------------------------X                             
            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


               On December 11, 1987, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          November 18, 1987, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 392 Central Park West, New York , New York, Apartment No. 
          7U, wherein the Rent Administrator determined that the owner had 
          overcharged the tenant.
               
               The Commissioner notes that this proceeding was filed 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 Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 of the Rent Stabilization Code.

               The issue herein is whether the Rent Administrator's order was 
          warranted.

               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 in March, 1984, by the filing of 
          a rent overcharge complaint by the tenant in which the tenant stated 
          that he first moved to the subject apartment pursuant to a lease 
          commencing April 1, 1981 at a rental of $432.09 per month.  In 
          response to the tenant's complaint, the owner submitted a complete 
          rental history as required.

               In order Number CDR 31,861, the Rent Administrator determined 
          that the tenant had been overcharged in the amount of $456.14 and 
          directed the owner to refund such overcharge to the tenant.

               In this petition, the owner alleges in substance that no 









          BL410275RO





          overcharge occurred in that the subject apartment was vacancy 
          decontrolled in 1973 and the first rent stabilized lease commencing 
          May 1, 1973 for a three year period was not subject to any form of 
          rent regulation.  Said lease was for a three year period and listed 
          a rent of $210.00 for the first year; $215.00 for the second year; 
          and $220.00 for the third year.  However the Rent Administrator in 
          his order incorrectly listed the rent for this entire lease period 
          as $215.00.  If this mistake is corrected, it is apparent that no 
          rent overcharge occurred.

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

               An examination of the record in this case discloses that the 
          owner submitted a copy of the initial vacancy lease commencing May 
          1, 1973 in the proceeding before the Rent Administrator and that 
          said lease did list rents of $210.00, $215.00 and $220.00 for the 
          three year period as contended by the owner in its petition.  
          Further the record discloses that this lease was signed at a period 
          of vacancy decontrol prior to June 30, 1974 so that the subject 
          apartment was not subject to rent regulation when the prior tenant 
          signed the May 1, 1973 lease.  Accordingly, the Rent Administrator 
          should have listed the rent as $220.00 effective May 1, 1975 - the 
          last year of the May 1, 1973 lease.  When this is done, no 
          overcharge occurs for the subsequent lease periods since all rents 
          charged are based on appropriate guideline and major capital 
          improvement rent increases.  Accordingly, the Rent Administrator's 
          order finding a rent overcharge must be revoked.

               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 is permitted to pay off the 
          arrears in twenty four equal monthly installments.  Should the 
          tenant vacate after the issuance of this order or have already 
          vacated, said arrears shall be payable immediately.

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

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, granted, and that the order of the Rent 
          Administrator be, and the same hereby is, revoked, and it is found 
          that no rent overcharge occurred.

          ISSUED


                                                                       
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner






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