BF 210083-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
                                
                                
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IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
APPEAL OF                               DOCKET NO.
                                        BF 210083-RO
     STATE FUNDING CORPORATION,         DISTRICT RENT
                                        ADMINISTRATOR'S DOCKET
NO.
                   PETITIONER           K 310557-R
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  ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                
                                
On  June  9,  1987, the above-named owner filed  a  petition  for
administrative review of an order issued on June 4,  1987,  by  a
District  Rent Administrator concerning the housing accommodation
known  as   Apartment  5-K, 3080 Voorhies Avenue,  Brooklyn,  New
York,  wherein the Administrator determined that the  tenant  had
been overcharged.

The  Commissioner has reviewed all of the evidence in the  record
and  has carefully considered that portion of the record relevant
to the issues raised by the administrative appeal.

The  subject tenant filed a complaint of rent overcharge with the
New York City Conciliation and Appeals Board (C.A.B.), the agency
formerly charged with enforcement of the Rent Stabilization Law.

On  April 1, 1984 responsibility for the administration  of  rent
stabilization in New York City was transferred to  the  New  York
State Division of Housing and Community Renewal (D.H.C.R.).

The tenant commenced occupancy on December 15, 1978 pursuant to a
three-year lease, expiring on December 31, 1981 at a monthly rent
of $290.00.

In  its  answer, the owner provided a complete rental history  of
the subject apartment.

In  the  order under review herein, the Administrator found  that
there  had  been  a rent overcharge of $168.45, including  excess
security and accrued interest from April 1, 1984.


In   its  petition  for  review,  the  owner  asserts  that   the
Adminis-trator  neglected  to compute  the  retroactive  1%  rent
increase  to the complainant's initial lease period, pursuant  to
Guideline  Order  10a.   The  owner  further  asserts  that   the
Administrator incorrectly granted a 15% increase for  the  three-
year  lease  commencing on January 1, 1982, because  pursuant  to
Guideline  Order  13,  the applicable guideline  for  that  lease
period, the rent should have been increased by 16%.

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

Guideline  Order  10a  retroactively increased  the  lawful  rent
charged during the lease period starting on December 15, 1978 and
expiring on December 31, 1981 from $290.00 to $292.59. Subsequent
rent increases were correctly based on the $292.59 rent.

The  Commissioner  finds that the owner's second  point  is  also
correct.  The Administrator in calculating the legal rent for the
three-year  lease  commencing  on January  1,  1982  should  have
increased the rent by 16% pursuant to Guideline Order 13, instead
of 15%.

A  review  of  the  calculations shows  that  no  overcharge  had
occurred.   Accordingly, the Commissioner is of the opinion  that
the District Rent Administrator's order finding a rent overcharge
should be revoked.


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

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


ISSUED:




ELLIOT SANDER
                                         Deputy Commissioner