ADM. REVIEW DOCKET NO.: BE 410008 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.: BE 410008 RO  
                                                :  RENT ADMINISTRATOR'S DOCKET  
                                                  NO.: L-3114916-R
                                                        CDR 29,899
             AVON BARD CO.                         TENANTS: DELIA MARSHALL 
                                  PETITIONER    :           RUTH PAGANI 
            ------------------------------------X                             
              ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                         IN PART

                 On May 1, 1987 the above named petitioner owner filed a 
            Petition for Administrative Review against an order of the Rent 
            Administrator, 10 Columbus Circle, New York, NY issued April 15, 
            1987.  The order concerned housing accommodations known as Apartment 
            8F located at 320 East 22nd Street, New York, N.Y.  The 
            Administrator determined that the tenant had been overcharged and 
            calculated the total overcharge at $3765.04 including interest and 
            excess security.

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

            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. 

            This proceeding was commenced on March 28, 1984 by the filing 
            of a rent overcharge complaint.  The tenants stated that they took 
            occupancy of the subject apartment on October 31, 1983 pursuant to
            a one year vacancy lease at a monthly rental of $1300 per month.  




            The owner was served with a copy of the complaint and
            afforded an opportunity to respond.  The owner submitted a 
            response stating that the building became subject to rent 













          ADM. REVIEW DOCKET NO.: BE 410008 RO

            stabilization in 1980 as a result of the conversion of commercial 
            units to residential units pursuant to the J-51 program.  Copies 
            of leases and/or rent ledgers from July 1980 through October 1983 
            were also submitted.  The owner explained that a vacancy lease was 
            signed on September 1, 1982 because the parties to the prior 
            renewal lease had changed. 

            The Administrator's order stated that as a result of the 
            owner's failure to interpose a response to the complaint, the 
            tenants' rent history and allegations were admitted as factual.    
             
            The Administrator found that since the owner had failed to 
            substantiate the installation of new equipment no increase 
            pursuant to Section 20C(1) of the former Rent Stabilization Code 
            was allowed.  The order also stated that, pursuant to Section 
            20A(4) of the former Code, the owner could not increase the rent 
            until June 30, 1982, the date of expiration of the first 
            stabilized lease.  The lawful rent was established at $1,089.92 
            for the lease from October 17, 1983 to February 28, 1985 and the 
            owner was directed to refund $3,765.04, including excess security 
            and interest.

            On appeal the owner states that a proper answer to the  
            complaint was sent to the Administrator on three separate 
            occasions.  Proof of mailing is enclosed.  Based on this 
            information the owner requests reversal of the Administrator's 
            order.  The tenant did not file a response. 

            After a careful review of the evidence in the record the 
            Commissioner is of the opinion that the petition should be 
            granted in part.

            A review of the record reveals that the Administrator's 
            determination was based on a complete rental history that included 
            the leases and rent ledgers that the owner enclosed with the 
            petition.  Although the order stated that the owner did not 
            respond to the complaint, a response was actually received and 
            considered.  The Commissioner notes however, that this proceeding 
            does not involve any factual dispute regarding the rental history.  
            The Administrator determined the lawful stabilized rents and 
            overcharges owed to the tenants.  The Administrator ruled that the 
            owner was prohibited from taking guideline increases from October 
            1, 1980 until July 1, 1982 pursuant to Section 20A(4) of the Code.  
            However, this ruling was in error.  Section 20A(4), as set forth 
            in the Administrator's order, is applicable to "those dwelling 


            units which were subject to the City Rent Law on June 30, 1974."  
            However, this is not the case with the apartment which is the 
            subject of this proceeding.  Indeed, this building became subject 
            to rent stabilization due to its status as a "J-51" building.  The 
            New York City Rent Law was never applicable to this apartment.  


          ADM. REVIEW DOCKET NO.: BE 410008 RO

            Appropriate guideline increases should have been granted for the 
            leases commencing October 1, 1980 and October 1, 1981.  

            The Commissioner has recalculated the rent in the annexed 
            Rent Calculation Chart, which is made a part of this order and 
            opinion.  An overcharge still exists in the amount of $2532.81 
            including interest and excess security.  The Administrator's order 
            is modified to reflect this lesser amount.

            Because this determination concerns lawful rents only through 
            the date of February 28, 1985 used in the Administrator's order 
            being appealed, the owner is cautioned to adjust subsequent rents 
            to an amount no greater than that determined by this order plus 
            any lawful increases, and to register any adjusted rents with this 
            Order and Opinion being given as the explanation for the 
            apartment.  A copy of this order is being sent to the tenant now 
            in occupancy. 

            This order may be docketed and enforced in the same manner as 
            a judgment of the Supreme Court.

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

            ISSUED:




                                                                          
                                            JOSEPH A. D'AGOSTA
                                            Acting Deputy Commissioner











    

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