DOC. NO. BD 610440-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 610440-RO
                        LLOYD GOLDMAN,           DRO DOCKET NO.:
                   (c/o WYNDHAM REALTY CO.), :        ZB-003793-R
                                 PETITIONER  :   TENANT: MARIE GRAY

                                       IN PART

         On April  30, 1987 the above named petitioner-owner filed a Petition 
         for Administrative Review against an order issued on April 24, 1987 by 
         the District Rent Administrator 92-31 Union Hall Street, Jamaica, New 
         York concerning housing accommodations known as Apartment 9A at 930 
         Grand Concourse, Bronx, New York wherein the District Rent 
         Administrator determined that the owner had overcharged the tenant.

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

         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 by the filing in September. 
         1985 of a rent overcharge complaint by the tenant, in which she stated 
         that she had commenced occupancy on May 11, 1985 at a rent of $553.28 
         per month.

         The owner was served with a copy of the complaint and was requested to 
         submit an answer, including a copy of the 1984 registration and proof 
         of service thereof.  The owner submitted the proof of service as well 
         as receipts and cancelled checks for a new gas range and refrigerator.

         In an order issued on April 24, 1987 the District Rent Administrator 
         determined that the tenant had been overcharged in the amount of 
         $987.16 as of April 30, 1987, and directed the owner to refund such 
         overcharge to the tenant as well as to reduce the rent.

         In this petition, the owner contends in substance that there was no 
         rent overcharge in that the District Rent Administrator's order failed 
         to take into account the prior tenant's last lease, the cost
         of new appliances, and an increase of 2.10% for a Major Capital 
         Improvement (M.C.I.).

         DOC. NO. BD 610440-RO

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

         The Administrator calculated the increase in the tenant's vacancy 
         lease based on the rent in effect on September 30, 1984, the end of 
         the previous Guidelines period.  The Administrator assumed that the 
         April 1, 1984 rent of $439.69 shown in the 1984 registration was also 
         in effect on September 30, 1984.  However, as indicated on the 1985 
         registration, a renewal lease at a rent of $470.47 took effect on May 
         1, 1984.  An order in Docket No. OM-5704 later retroactively increased 
         the lawful rent in that lease to $479.70, although such later increase 
         was not reflected in the 1985 registration since the order had not yet 
         been issued at that time.  Since the M.C.I. order and the 1985 
         registration were in the DHCR's records the Commissioner finds it 
         appropriate to make use of them in calculating the lawful 
         stabilization rents and the amount of overcharge, which are set forth 
         on the amended rent calculation chart attached hereto and made a part 

         The owner is incorrect in asserting that the Administrator did not 
         take the cost of new appliances into account.  The owner submitted 
         receipts for $700.78 for a new refrigerator and stove.  The 
         Administrator included a "20C(1) allowance of $17.52" in the rent 
         calculation chart and explained it in a footnote.

         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 six equal monthly installments.  Should the tenant 
         vacate after the issuance of this order, or have previously vacated, 
         said arrears shall be payable immediately.

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

         ORDERED, that this petition be, and the same hereby is, granted in 
         part and that the Administrator's order be, and the same hereby is, 
         modified in accordance with this order and opinion.  The lawful 
         stabilization rents are set forth on the amended rent calculation 
         chart attached hereto and made a part hereof.  The total overcharge, 
         including excess security of $1.29, is $39.68 as of April 30, 1987.


                                                 ELLIOT SANDER
                                                 Deputy Commissioner

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