BD 210457 RO
                                  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. BD 210457 RO

                      EVELYN HAYNES,
                                                  DISTRICT RENT ADMINISTRATOR'S 
                                                  DOCKET NO. K 3103776 RT
                                  PETITIONER
          ----------------------------------X                                   


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          On April 30, 1987, the above-named owner  filed  a  petition  for
          administrative review of an order issued on April 3, 1987,  by  a
          District Rent Administrator concerning the housing  accommodation
          known as Apartment No. D-11, 742 Montgomery Street, Brooklyn, New 
          York, wherein the Rent Administrator determined that  the  tenant
          had been overcharged.

          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 by the petition for review.

          The subject tenant filed a complaint of rent overcharge with  the
          New York City Conciliation and Appeals Board (C.A.B.), the agency 
          formerly charged with enforcement of the Rent Stabilization Law.

          On April 1, 1984 responsibility for the  administration  of  rent
          stabilization in New York City was transferred to  the  New  York
          State Division of Housing and Community Renewal (D.H.C.R.).

          The tenant commenced occupancy on May 15, 1983 pursuant to a one 
          year lease, expiring on May  15,  1984,  at  a  monthly  rent  of
          $260.00.

          In the order reviewed herein, the Administrator  found  that  the
          owner  submitted  a  full  rental  history,   and   found   total
          overcharges in the amount of $439.26, including  excess  security
          and accrued interest from April, 1984.

          In its petition for review, the owner asserts that the rent prior 
          to the  complaining  tenant's  occupancy  was  $216.45,  and  the
          initial rent of $260.00 was derived by increasing $216.45 by  the
          applicable guideline increase and vacancy increase.

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

          Pursuant to Rent Guideline Order No. 14, which is  applicable  to






          BD 210457 RO
          leases commencing on May 15, 1983, the owner was  entitled  to  a
          4% rent increase for a one-year lease.   In  addition,  Guideline
          No. 14 did not permit any vacancy allowances.  The rent in effect 
          prior to the applicable guideline order was $216.45.   Therefore,
          the  tenant's  initial  legal  regulated  rent  is  $225.11,   as
          determined by the Administrator.  Accordingly,  the  Commissioner
          finds that the Administrator's order should be affirmed.

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

          ORDERED, that this petition be, and the same hereby  is,  denied,
          and that the order of the Rent Administrator  be,  and  the  same
          hereby is, affirmed; and it is

          FURTHER ORDERED, that the owner shall immediately refund  to  the
          tenant all amounts not  yet  refunded  representing  overcharges,
          penalties, and excess security deposit; and it is

          FURTHER ORDERED, that if the owner has not commenced a proceeding 
          pursuant to Article 78 of the Civil Practice Law  and  Rules  for
          judicial review of this order within 60 days of its issuance, the 
          tenant may recover the total overcharges of $439.26 (or  so  much
          of it as may still be owing) by deducting it from the rent due to 
          the owner at a rate not in excess of twenty percent of the amount 
          of the penalty for any one month's rent.



          ISSUED:
                                                  ------------------------
                                                  ELLIOT SANDER
                                                  Deputy Commissioner
           
                                          
    

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