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 410176-RO
                                         :  
                                            DRO DOCKET NO.: L 3118113-R
       HERMAN REALTY CORP.                                  CDR 29,440
                           PETITIONER    : 
     ------------------------------------X                             

           ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

     On April 2, 1987 the above named petitioner-owner  filed  a  Petition  for
     Administrative Review against  an  order  of  the  Rent  Administrator  10
     Columbus Circle, New York.  This order  concerned  housing  accommodations
     known as Apartment 1F located at 310 East 12th Street, New York, NY 10003. 
     The order was issued March 12, 1987 and found a general rental  overcharge
     of $175.38 including interest.

     This case began with the filing of a complaint by the tenant on March  31,
     1984.  He alleged he was living at the subject apartment pursuant to  a  2
     year lease which began March 1, 1984.  He  further  alleged  that  he  was
     paying an "arbitrary inflated figure" for his initial rent  and  that  all
     subsequent increases were inflated.  The landlord answered and supplied  a
     full rental  history.   His  contention  was  that  he  had  made  certain
     improvements to the apartment, when it was vacant, and incorporated  these
     improvements into the rent as the law allowed.

     The  Administrator  properly  applied  the  appropriate   guidelines   and
     determined  an  overcharge  of  $175.38.   The  issue  involved   in   the
     determination  of  this  appeal  revolves  around  the  increase  for  new
     equipment.  This increase was previously allowed by Section 20C(1) of  the
     former  Rent  Stabilization  Code.   It  is   now   allowed   by   Section
     2522.4(a)(1),(4) of the Rent Stabilization Code.   As  the  apartment  was
     vacant, the petitioner required no approval of the tenant.

     After a careful  review  of  the  record,  the  Commissioner  grants  this
     petition.  The  Administrator  allowed  $995.00  in  new  equipment.   One
     fortieth of this amount equals $24.88 per month.  The petitioner, however, 
     had  submitted  paid  invoices  totalling  $1214.58.   Applying  the  same
     formula, the correct amount to be added to the base rent is  $30.36.  When
     added to $519.57  this  equals  $549.93  in  total  allowable  rent.   The
     overcharge is 21 cents per month x 24 months + 9%  interest  on  all  post
     April 1, 1984 overcharges.  This equals $525.

     If the owner has already complied with the Administrator's order and there 
     are arrears due to the owner as a result of the present determination, the 
     owner is directed to allow the tenant to pay off  the  arrears  in  twelve
     monthly installments.  Should the tenant vacate after the issuance of this 
     order,  or  have  previously  vacated,  said  arrears  shall  be   payable
     immediately.







          DOCKET NUMBER: BD 410176-RO
     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 in  its  entirety,  and  it  is  found  that  there  was  no  rent
     overcharge.

     ISSUED:







                                                                   
                                            ELLIOT SANDER
                                         Deputy Commissioner