DOCKET NO.:  BD410528-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

          -------------------------------------X
          IN THE MATTER OF THE ADMINISTRATIVE  :  ADMINISTRATIVE REVIEW
          APPEAL OF                            :  DOCKET NO.:  BD410528-RO
                                               :
          37 HOLDING COMPANY,                  :  D.R.O. DOCKET NO.: L-3114084-RT
                                               :                  
                                               :  TENANT:  ROBERT LICHTERMAN
                                   PETITIONER  :
          -------------------------------------X


          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN 
                                        PART


          On April 14,  1987,  the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          March 11, 1987, by the District Rent Administrator,  10  Columbus
          Circle, New York, New  York,  concerning  housing  accommodations
          known as Apartment 10-C, 514  West  End  Avenue,  New  York,  New
          York, wherein the District Rent Administrator determined that the 
          owner had overcharged the tenant.

          The Commissioner notes that this proceeding was  initiated  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  issue  in  this  appeal  is  whether   the   District   Rent
          Administrator's order was warranted.

          The applicable sections of the law are Section 10B of the  former
          Rent Stabilization Code and Section 2526.1 of  the  current  Rent
          Stabilization Code.






          DOCKET NO.:  BD410528-RO
          The Commissioner has reviewed all of the evidence in  the  record
          and has carefully considered that portion of the record  relevant
          to the issue raise by the administrative appeal.

          This proceeding was commenced on March 25, 1984, by the  tenant's
          filing of a rent overcharge complaint  with  the  New  York  City
          Conciliation and Appeals Board (CAB), the agency formerly charged 
          with enforcing the Rent Stabilization Law.

          In Order Number CDR 29,384 issued March 11,  1987,  the  District
          Rent  Administrator  determined  that   the   tenant   had   been
          overcharged since October 1, 1975 and  accordingly  directed  the
          owner to refund to the  tenant  overcharges  of  $1,522.51  which
          included excess security and interest  on  that  portion  of  the
          overcharge occurring on or after April 1, 1984.

          In this petition,  the  owner  contends  in  substance  that  the
          District Rent Administrator failed to include in the calculations 
          of his legal regulated rents two major capital improvement  (MCI)
          rent   increases:   one   ($4.52)   for   the   heating    system
          modernization/upgrading effective in June 1974  and  one  ($1.29)
          for elevator upgrading effective in September  1974.    Also  the
          Administrator mistakenly considered the tenant's decontrol  lease
          as a three-year lease and used an incorrect commencement date for 
          the tenant's next lease.

          In response, the tenant contends in substance that the owner  has
          not issued renewal leases in a timely fashion.

          On May 3, 1991, the Administrative Review Unit of the Division of 
          Housing and  Community  Renewal  requested  from  the  petitioner
          copies of the orders  authorizing  rent  increases  for  the  two
          above-mentioned MCI's.  The petitioner did not submit a  response
          to this request.

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

          A  review  of  the  rental  history  for  the  subject  apartment
          indicates that the tenant's initial lease commencing  on  October
          1, 1972  was  a  two  year  vacancy  lease  which  terminated  on
          September  30,  1974.    The   Rent   Administrator   incorrectly
          considered this lease as a three year  lease.   The  Commissioner
          also notes that the tenant's two year renewal lease commenced  on
          May 1, 1975  rather  than  October  1,  1975  as  stated  by  the
          Administrator.  Based on the foregoing,  the  Commissioner  finds
          that  the  Rent  Administrator  erred  in  computing  the   legal
          regulated rents.  The Commissioner has  recalculated  the  lawful
          stabilization rents and amounts  of  overcharge  on  the  amended
          rent calculation chart attached hereto and made a part hereof.
          With regard to the owner's contention that it was  authorized  to
          collect two MCI rent increases in 1974,  the  Commissioner  notes
          that the owner has not submitted any  evidence  to  support  this
          claim, and therefore this claim is rejected by the Commissioner.

          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 shall be permitted to  pay  off
          the arrears in twenty-four equal  monthly  installments.   Should






          DOCKET NO.:  BD410528-RO
          the tenant vacate after  the  issuance  of  this  order  or  have
          already vacated, said arrears shall be payable immediately.

          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, the tenant may offset  against  any  rent
          thereafter due the owner not in  excess  of  twenty  percent  per
          month of the remaining overcharge.


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

          The  lawful  stabilized  rents  and  amounts  of  overcharge  are
          established on the attached chart which is fully made a  part  of
          this order.



          ISSUED:




                                                                           
                                             ELLIOT SANDER
                                             Deputy Commissioner







                                               ADMINISTRATIVE REVIEW BUREAU
                                                COVERING MEMORANDUM


          ARB Docket No.:  BD-410528-RO

          DRO Docket No/Order No.:  L-3114084-RT

          Tenant(s): ROBERT LICHTERMAN

          Owner:  37 HOLDING COMPANY

          Code Section:  

          Premises:  514 WEST END AVENUE, NEW YORK, NY, APARTMENT 10-C.


          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


          Administrator used incorrect lease terms  in  calculating  the  lawful
          stabilization rent.  Rent recalculated using the  proper  lease  terms
          showing a lesser amount of overcharge.



          APPROVED:

          Processing Attorney:                                             

          Supervising Attorney:                                            

          Bureau Chief:                                                    

          Deputy Counsel:                                                  

          Deputy Commissioner:                                             


          Mailed copies of Order and Determination to:
                         Tenant(s)            
                         Owner                
                         Tenant's Atty.       
                         Owner's Atty.        


          Date:                    : by                                   
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