BD 420314-RO    

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

          APPEAL OF                               DOCKET NO.:   
                                                  BD 420314-RO          
                 WINIFRED                   B.                    MULLIGAN,
                                                  DISTRICT RENT ORDER 
                                                  DOCKET               NO.:
                                  PETITIONER         LC    000787-FR     85


          On April 27, 1987, the above-named petitioner-owner filed a Peti 
          tion for Administrative Review  against  an  order  of  the  Rent
          Administrator  issued  April  9,  1987.   The   order   concerned
          housing accommodations located at 426 East 77th Street, New York, 
          New York.

          The Commissioner has reviewed the record and carefully considered 
          that portion relevant to the issues raised by this appeal.

          The issue in this proceeding is  whether  Fuel  Cost  Adjustments
          should have been suspended for the calendar year 1985.

          The  District  Rent  Administrator's   order   appealed   herein,
          suspended all fuel cost adjustments for  the  period  January  1,
          1985 - December 31, 1985.

          This order was based on a finding that the owner of  the  subject
          building had previously obtained allowable fuel cost adjustments
          and failed to timely  file  the  required  report  of  fuel  cost
          decrease by reason of a decrease  in  the  price  of  No.  2  oil
          during the calendar year 1984.

          On appeal the owner states that the Administrator failed to  send
          the proper notice to her  regarding  the  1985  fuel  adjustment.
          This failure, petitioner claims, excessively penalizes the  owner
          without justification.

          After careful consideration of the evidence of  record  the,  the
          Commissioner is of the opinion  that  the  administrative  appeal
          should be denied.

          Pursuant to 9 NYCRR 2202.13 where a landlord  has  obtained  fuel
          cost adjustments and then  there  is  a  finding  of  fuel  price
          decrease, within 60 days of the promulgation of  the  finding  on
          fuel price, the landlord must serve and file  a  report  of  fuel
          price decrease.

          BD 420314-RO    
          In early 1985, a finding was promulgated that the price of No.  2
          oil had declined during 1984.  Therefore,  the  subject  landlord
          was required to file and serve fuel cost decrease reports  on  or
          before May 15, 1985.

          In this matter  it  is  undisputed  that  a  "Landlord's  Report,
          Certification and Notice of Fuel Cost  Adjustment  Eligibility  -
          1985" was not served on the tenants or received by  the  District
          Rent Office on or before May 15, 1985.

          The petitioner is incorrect in assuming  that  the  Administrator
          had an affirmative duty to notify the landlord of the  obligation
          to file the required fuel cost adjustment report.   The  Division
          does not send out such notices and landlords who  are  collecting
          a fuel cost adjustment are required  to  update  that  adjustment
          each year pursuant to the annual  promulgation  of  increases  or
          decreases in fuel prices.  The Division's records reveal that the 
          landlord herein had  previously  filed  reports  to  qualify  for
          eligibility to collect fuel adjustments for 1980, 1981, and  1982
          but failed to do so for subsequent years.

          The Commissioner is of the opini n  the  District  Rent  Adminis-
          trator correctly suspended Fuel Cost Adjustments for the calendar 
          year 1985.

          THEREFORE, pursuant to the Rent and Eviction Regulations, it is

          ORDERED, that this petition be, and the same  hereby  is,  denied
          and that the Rent Administrator's order be, and the  same  hereby
          is, affirmed.


                                                ELLIOT SANDER
                                                Deputy Commissioner


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