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 410243 RO
                                              :  DRO DOCKET NO. L-3114630-R
               ALEXANDER KARAS                   TENANT: BRENDA MILLER  

                                PETITIONER    : 
          ------------------------------------X 

          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN 
          PART


               On May 28, 1987, the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review  against  an  order  issued  on
          April 28, 1987, by the Rent Administrator, 10 Columbus Circle, New 
          York, New York, concerning the housing accommodations known as 226 
          East 7th Street, New York, New York, Apartment No. 4A, wherein the 
          Rent Administrator determined that the owner had  overcharged  the
          tenant. 

               The Commissioner notes that this proceeding was  filed  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
          provision  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 Administrative Appeal is being determined pursuant to the 
          provisions of Section 42A of the former Rent Stabilization Code. 

               The issue herein is whether the  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
          March 1984 of a rent overcharge complaint by the tenant  in  which
          the tenant stated in substance that she first moved to the subject 
          apartment on July 1, 1982 at a rental of $500.00 per  month.   The
          tenant submitted affidavits from three occupants  of  the  subject
          premises to the effect that the prior tenant was at one  time  the
          superintendent of the subject premises and paid a rental of  about
          $240.00 per month.

          BE 410243 RO









               The owner was served with a copy of  the  complaint  and  was
          requested to submit rent records to prove the  lawfulness  of  the
          rent being charged.  In response, the  owner  submitted  a  rental
          history from January 15, 1978 including copies of leases and  rent
          ledgers and stated that the base date was January  15,  1978.   In
          support of such contention, the owner submitted a  copy  of  a1977
          rent ledger indicating the subject apartment was  rent  controlled
          in 1977 and  that  the  rent  controlled  tenants,  Quinones/Colon
          vacated in December 1977 at a rental of $112.08 per month.

               In Order Number CDR 31130, the Rent Administrator  determined
          that the owner had failed to submit a complete rental history  and
          based thereon, found that the tenant had been overcharged  in  the
          amount of $9506.68 including excess security and interest on  that
          part of the overcharge occurring on and after April  1,  1984  and
          directed the owner to refund such overcharge to the tenant.

               In this petition, the owner contends in substance that it did 
          submit a complete rental history and  that  the  subject  premises
          contains only nine units so that the  Rent  Administrator's  order
          finding a rent overcharge is unduly  harsh  to  a  small  building
          owner.

               In answer to the owner's  petition,  the  tenant  alleges  in
          substance that the owner has not established that he submitted the 
          rental history on a timely  basis,  that  the  owner's  copies  of
          receipts for certified mailing  are  only  proof  that  he  mailed
          something, perhaps an empty envelope  or  an  answer  without  the
          required rental history; that  the  copies  of  the  rent  ledgers
          submitted do not appear to have been made in the regular course of 
          business but were probably prepared for this proceeding, that  the
          owner does not appear to have filed a  decontrol  report  for  the
          subject apartment, that the copies of the leases submitted by  the
          owner are typewritten whereas the  owner  generally  has  had  the
          practice of preparing handwritten leases; and  that  the  Pastoria
          lease submitted by the owner was signed "Manny  Pastoria"  whereas
          at the time of the alleged Pastoria occupancy, the occupant of the 
          subject apartment referred to  himself  as  "Angel  Pastoriza"  or
          "Angel Sepulvida".

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

               Section 42A of the former Rent  Stabilization  Code  requires
          that  an  owner  retain  complete  records  for  each   stabilized
          apartment from June 30, 1974 to date and produce them to the  DHCR
          upon demand.  If the apartment  was  decontrolled  from  the  Rent
          Control  Law  after  June  30,  1974,  the  owner   must   provide
          satisfactory documentary  evidence  of  the  apartment's  date  of
          decontrol.

               An  examination  of  the  records  in  this  case   including
          certified mailing receipts discloses that the owner did  submit  a
          BE 410243 RO









          complete rental history on a timely basis in the proceeding before
          the Rent Administrator since the  owner  had  submitted  a  rental
          history from January 15, 1978, the date of occupancy of the  first
          rent  stabilized  tenant.   Further  contrary  to   the   tenant's
          contention, rent control records disclose that the owner did  file
          a Report of Statutory Decontrol for the subject apartment - docket 
          LS000858SD albeit filed on February 5, 1985 - after  the  tenant's
          complaint herein was initiated.  However there is no time limit as 
          to when an owner may file such a report.  In addition maximum base 
          rent records for the subject apartment support  the  owner's  1977
          rent ledgers in that the maximum base rent records show  that  the
          subject apartment was rent controlled during 1974-75 and that  the
          rent controlled tenants were Quinones/Colon at a rental of $104.72 
          effective January 1, 1975.

               With regard to the tenant's contention that the prior  tenant
          was a superintendent who paid a rent  of  $240.00  at  most,  such
          contention is rebutted by the documentary  evidence  submitted  by
          the owner including leases and rent ledgers  which  indicate  that
          the prior tenant's last rent was $400.00 per month  although  some
          of this may have been paid by such prior tenant  in  the  form  of
          part time superintendent services in the  nine  unit  building  as
          noted in the prior tenant's vacancy lease.  The  Commissioner  has
          examined the copies of the leases and rent  ledgers  submitted  by
          the owner and is of the opinion  that  such  documents  accurately
          reflect the rental history of the subject  apartment  despite  the
          discrepancy in the  names  uses  by  the  prior  tenant-part  time
          superintendent.

               The Commissioner has recalculated  the  lawful  stabilization
          rents and amount of the rent overcharge for the subject  apartment
          on the basis of the rental history submitted by  the  owner.   The
          lawful stabilization rents and amount of the rent  overcharge  are
          set forth on the amended rent calculation  chart  attached  hereto
          and made a part hereof.  The overcharge  is  due  to  the  owner's
          compounding of guideline  increases  during  the  same  guidelines
          period which is prohibited.

               Because this determination concerns lawful rents only through 
          the date of June 30, 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 with said order being given  as  the  explanation
          for the adjustment.

               If the owner has already complied  with  the  Administrator's
          order and there are arrears due to the owner as a  result  of  the
          instant determination, the tenant is  permitted  to  pay  off  the
          arrears in twenty four equal monthly installments.

               This order may 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, be filed and enforced as a  judgment
          or not in excess of twenty percent per month thereof may be offset 
          BE 410243 RO



          against any rent thereafter due the owner.







               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 in part, and, that the  order  of  the
          Rent Administrator  be,  and  the  same  hereby  is,  modified  in
          accordance with this order and opinion.  The lawful  stabilization
          rents and  amount  of  rent  overcharge  are  established  on  the
          attached chart which is fully made a  part  of  this  order.   The
          amount of the rent overcharge through June 30, 1985 is $2726.76. 

          ISSUED



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                                                    
          ```````````````































                            ADMINISTRATIVE REVIEW BUREAU
                                 COVERING MEMORANDUM










          ARB Docket No.: BE 410243 RO

          DRO Docket No/Order No.: L-3114630-R

          Tenant(s): Brenda Miller

          Owner: Alexander Karas

          Code Section: 42 A of former RSC

          Premises: 226 East 7th Street, New York, NY, Apt. 4A

          Order    and     Opinion     Granting     Petition     in     Part
                           

               Petition granted in part on basis owner did submit a complete 
          rental history.   However,  examination  of  such  rental  history
          discloses that there is still a rent overcharge.








          APPROVED:



          Processing Attorney:                                             

          Supervising Attorney:                                            

          Bureau Chief:                                                    

          Deputy Commissioner:                                             

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


                           Date:              :  by               
                                                    signature
                    


                                      


























    

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