BE 210041 RT

                                  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. BE 210041 RT
                                              :  DRO DOCKET NO. 21402
               DIANA WHEATON                     OWNER: DAVIS/KELLY 
                                                        ASSOCIATES 
                                PETITIONER    : 
          ------------------------------------X                             
                   ORDER AND OPINION REMANDING PROCEEDING ON APPEAL


               On May 9, 1987, the above-named petitioner-tenant filed a 
          Petition for Administrative Review against an order issued on April 
          6, 1987, by the Rent Administrator, 10 Columbus Circle, New York, 
          New York, concerning the housing accommodations known as 520 Second 
          Street, Brooklyn, New York, Apartment No. 3R. wherein the Rent 
          Administrator dismissed the tenant's challenge to the fair 
          market rent.

          The record indicates that in July 1984, the tenant herein 
          filed an Objection to the Registration in which she questioned the 
          fair market rent of the subject apartment.

          In response the owner submitted copies of leases for the 
          subject apartment from November 15, 1976.  Such leases disclosed 
          that the tenant herein first moved to the subject apartment on 
          August 1, 1983.  The owner also stated that when the prior owner 
          had purchased the subject premises in 1977, the subject apartment 
          was rent stabilized.

          In Order Number 21402, the Rent Administrator dismissed the 
          tenant's fair market rent appeal on the basis that the subject 
          premises had been continuously rent stabilized and never subject 
          to rent control so that the tenant herein was not eligible to file 
          a fair market rent appeal.

          In this petition, the tenant alleges in substance that the 
          subject apartment was at one time subject to rent control and that 
          the tenant herein was entitled to file a fair market rent appeal.

          The Commissioner is of the opinion that this proceeding 
          should be remanded so that the tenant's fair market rent appeal 
          can be processed on the merits.

          In this case, rent records for the subject apartment disclose 
          that the subject apartment had been subject to rent control and 
          that the owner filed a report of statutory decontrol on January 
          13, 1976 under docket 2DR 165576.  Accordingly, the Rent 
          Administrator should not have dismissed the tenant's fair market 










          BE 210041 RT
          rent appeal on the basis that the subject apartment has been 
          continuously subject to the Rent Stabilization Law.  Therefore, 
          this proceeding is being remanded to process the tenant's fair 
          market rent appeal on the merits.  All parties are to be notified 
          and given a chance to submit evidence in such remanded proceeding 
          including evidence as to whether the first rent stabilized tenant 
          was served with the required DC-2 Notice.

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

          ORDERED, that this petition for administrative review be, and 
          the same hereby is, granted to the extent of remanding this 
          proceeding to the Rent Administrator for further processing in 
          accordance with this order and opinion. 

          ISSUED



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                     































    

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