STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL      OF                                   DOCKET       NO.:
                                                 BD 110472 RO 
                                              :    D.R.O.    DOCKET    NOS.:
                                                 CDR 29,876 
                                                 Tenant:   Charles   Szekely
           FRESH                     MEADOWS                      ASSOCIATES
                                 PETITIONER   :  

            IN PART

               On April 28, 198, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review  against  an  order  issued  on
          April 15, 1987 by the Rent Administrator, 10 Columbus Circle,  New
          York, New York, concerning the  housing  accommodations  known  as
          69-05 B 186 Lane,  Fresh  Meadows,  New  York,  Apartment  No.  2A
          wherein the Rent  Administrator  determined  that  the  owner  had
          overcharged the tenant. 

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

               The applicable section of the Law is Section  2526.1  of  the
          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 in July 1982 by  the
          filing of a rent overcharge  complaint  by  the  tenant  who  took
          occupancy of the subject apartment on June 17, 1980.

               The owner was served with a copy of  the  tenant's  complaint
          and submitted a complete rental history as required.

               In Order Number CDR 29,876, the Rent Administrator determined 
          that the tenant had been overcharged in  the  amount  of  $1586.64
          through March 31, 1987 and  directed  the  owner  to  refund  such
          overcharge to the tenants.  The Administrator  further  determined
          that the owner was entitled to a rent increase of $113.98 (1/40 of 
          $4559.32-total cost of improvements made in the subject apartment) 
          effective June 17, 1980, that the lawful stabilization rents 

          effective July 1, 1986  was  $697.25  and  that  the  actual  rent
          charged by the owner effective July 1, 1982 to June 30,  1985  was

          ADM. REVIEW DOCKET NO.: BD 110472 RO

               In this petition the owner  alleges  in  substance  that  the
          amount of the rent increase due to the  improvements  should  have
          been calculated to be $119.79 - 1/40 of the total cost of $4791.52 
          rather than the figures of $113.98 -  1/40  of  a  total  cost  of
          $4559.32 used by the Rent Administrator; that the  owner  actually
          charged and collected a rent of $660.39 from July 1, 1982  through
          June 30, 1985 rather than the $645.42 figure used by the Rent  
          Administrator;   that   the   Rent    Administrator    erroneously
          miscalculated the hardship increase to be 2.68% of the January  1,
          1975 rent - $6.48  -  and  ignored  the  fact  that  the  hardship
          increase although granted in 1982 was retroactive to April 1, 1975 
          so that the owner should have been permitted to increase the 2.68% 
          hardship increase of $6.48 by the guideline increases up  to  July
          1982 making the hardship  increase  $13.06  and  that  when  these
          factors are taking into account, the  total  overcharge  would  be
          $1171.69 through March 31, 1987 and the lawful stabilization  rent
          effective July 1, 1986 would be $712.18.  

               In answer to the petition, the tenant  alleges  in  substance
          that from July 1, 1982 to June 30, 1985, he paid rent  arrears  of
          $7.56 per month in addition to the monthly rent of $660.39 so that 
          the owner's computation of  the  permanent  hardship  increase  as
          being $13.06 is in error.

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

               An examination of the records in this case discloses that the 
          Rent Administrator incorrectly excluded from  his  calculation  of
          the total cost of the improvements some  of  the  taxes  (for  the
          refrigerator and dishwasher) and  the  installation  cost  of  the
          dishwasher  to  which  the  owner  was  entitled.    However   the
          Administrator correctly found that the owner was not  entitled  to
          $162.00 of a bill for $324.00 for part of the rewiring since  this
          amount was attributable to rewiring in apartment 3A.   Accordingly
          the rent increase for the improvements should have been listed  as
          $115.74 - 1/40 of a total  cost  of  $4629.52  (owner's  total  of
          $4791.52 minus the excluded amount of $162.00). 

               The records further show that the  owner  did  not  charge  a
          $645.42 monthly rent during the lease period  from  July  1,  1982
          through June 30, 1985 as the  Administrator  found.   Rather  rent
          ledgers and copies of rent bills disclose that the owner  in  fact
          charged $660.39 plus a monthly payment of $7.56  due  to  hardship
          arrears during this period.

               In addition the records also disclose that  pursuant  to  CAB
          Docket Number CH-22, CAB Opinion Numbers, 21,082, 10195 and 20,599 
          issued on  June  24,  1982  and  incorporating  a  stipulation  of
          settlement, the owner was granted a hardship increase of 2.68%  of

          the rent charged on January 1, 1975 retroactive to April  1,  1975
          with the owner consenting to the payment of the  retroactive  rent
          arrears over a period of 36  months.   In  the  instant  case  the
          January 1, 1975 rent of the subject apartment was $241.88.   2.68%
          of $241.88 = $6.48-the hardship increase.  The retroactive  period

          ADM. REVIEW DOCKET NO.: BD 110472 RO
          is from April 1, 1975 through June 30,  1982  -  a  period  of  87
          months.  The retroactive rent arrears amount to $563.76 ($6.48 per 
          month x 87 months).  This amount - $563.76  -  is  divided  by  36
          months to give a payment of the temporary retroactive  portion  of
          the hardship increase of $15.66 per month during the  period  from
          July 1, 1982 through June 30, 1985.  The owner is also entitled to 
          the permanent hardship rent increase of $6.48 per month  effective
          July 1, 1982 and not a permanent increase of $13.06 as claimed  on

               Taking  the  aforementioned   factors   into   account,   the
          Commissioner has recalculated the lawful stabilization  rents  and
          the amount of the rent overcharge for the subject apartment.  

               The  lawful  stabilization  rents  and  amount  of  the  rent
          overcharge are set forth on the  amended  rent  calculation  chart
          attached hereto and made a part hereof. 

               Because this determination concerns lawful rents only through 
          March 31, 1987, the owner is cautioned to adjust subsequent  rents
          to an amount no greater than that determined by  this  order  plus
          any lawful increases, and to register any adjusted rents with this 
          order  and  opinion  being  given  as  the  explanation  for   the

               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 is  permitted  to  pay  off  the
          arrears in six equal monthly installments.

               This order may upon the expiration of the period in which the 
          owner may institute a proceeding pursuant to  Article  78  of  the
          Civil Practice Law and Rules, be filed and enforced as a  judgment
          or not in excess of twenty percent per month thereof may be offset 
          against any rent thereafter due the owner.

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

               ORDERED, that this petition  be,  and  the  same  hereby  is,
          granted in part and the Rent Administrator's order be and the same 
          hereby is, modified in accordance with this order and opinion.  

          The lawful stabilization rents are  established  on  the  attached
          chart which is fully made a part of this order.  The amount of the 
          rent overcharge through March 31, 1987 is $1658.32 and the  lawful
          stabilization rent effective July 1,1986 is $699.58 per month.  


          ADM. REVIEW DOCKET NO.: BD 110472 RO

                                          ELLIOT SANDER
                                          Deputy Commissioner



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