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.: BD 110389-RO
                                         :  
                                            DRO DOCKET NO.: ZQ 000226-R
       SHELBOURNE ESTATES 
       CO.,                PETITIONER    : 
     ------------------------------------X                             


           ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


     On April 28, 1987 the above named petitioner-owner filed  a  Petition  for
     Administrative Review against an order issued on April  17,  1987  by  the
     District Rent Administrator, 92-31 Union Hall Street,  Jamaica,  New  York
     concerning housing accommodations known as Apartment  6-F  at  99-44  62nd
     Avenue Rego  Park,  New  York  wherein  the  District  Rent  Administrator
     determined that the owner had overcharged the tenant.

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

     The applicable sections  of  the  Law  are  Section  26-516  of  the  Rent
     Stabilization Law and Section 2526.1(a) of the current 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 originally commenced by the filing in January, 1985 of 
     a rent overcharge complaint by the tenant, in which she  stated  that  she
     had commenced occupancy on November 30, 1984 at  a  rent  of  $625.50  per
     month.

     The owner was served with a copy of the complaint  and  was  requested  to
     submit rent records to prove the lawfulness of  the  rent  being  charged.
     The only submission from the owner contained in the file of the proceeding 
     before the Administrator consists of the 1984 apartment  registration  and
     of a certification of mailing by the Rent Stabilization Association.

     In an order issued on April 17,  1987,  the  District  Rent  Administrator
     determined that the tenant had been overcharged in the amount of $60.49 as 
     of November 30, 1985, and directed the owner to refund such overcharge  to
     the tenant as well as to reduce the rent.

     In this petition, the owner contends in substance that there was  no  rent
     overcharge in that the District Rent Administrator's order failed to  take








          DOCKET NUMBER: BD 110389-RO
     into account a renewal lease  of  the  prior  tenants,  submitted  to  the
     Administrator.  With its petition the owner has enclosed a  renewal  lease
     from July 1, 1984 to June 30, 1985 at a rent of $569.05.

     The tenant did not submit an answer  to  the  owner's  petition,  although
     given an opportunity to do so.

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

     The $569.05 rent in the renewal lease which the owner has  now  submitted,
     and claims to have submitted  previously,  represents  a  lawful  increase
     over the $547.15 rent in those tenant's prior  lease.   The  complainant's
     vacancy lease began on November 15,  1984,  during  Guideline  period  16.
     Guideline 16 allowed an increase of 13  1/2%  (7  1/2%  vacancy  allowance
     plus 6% for a one-year lease) over the September 30, 1984 rent of $569.05, 
     for a permissible rent of $645.87.  Since the  owner  charged  the  tenant
     only $625.50, there has been no overcharge shown in that lease.

     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 since there was no rent overcharge.

     ISSUED:










                                                                   
                                              ELLIOT SANDER
                                           Deputy Commissioner




                                                   
    

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