BF 210287 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. BF 210287 RO
                                              :  DRO DOCKET NO.ZL-005754-R
               ROYAL REALTY CO.                  TENANT: LEAH FEURTADO

                                PETITIONER    : 
          ------------------------------------X                             
             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


               On June 29, 1987, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on May 
          27, 1987, by the Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          2121 Westburg Court, Brooklyn, New York, Apartment No. 5B, wherein 
          the Rent Administrator determined that the owner had overcharged 
          the tenant.

          The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 of the 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 in November, 1985, 
          by the filing of a rent overcharge complaint by the tenant in 
          which the tenant stated that she first moved to the subject 
          apartment on October 1, 1983 at a rental of $340.00 per month and 
          questioned the high amount of the rent increase she was paying 
          subsequent thereto.

          In answer to the complaint, the owner submitted a complete 
          rental history for the subject apartment and stated that effective 
          March 30, 1984 under docket OM-5395, it was entitled to a rent 
          increase of 18.09% due to a "moderate rehabilitation" of the 
          subject premises.

          In Order Number ZL-005754-R, the Rent Administrator 
          determined that the owner was entitled to only a 5% rent increase 
          due to the "moderate rehabilitation" and based thereon found that 
          the tenant had been overcharged in the amount of $1066.09 through 
          May 31, 1987.  The owner was directed to refund the overcharge to 
          the tenant and the lawful stabilization rent was established at 
          $380.21 effective October 1, 1985.










          BF 210287 RO

          In this petition, the owner alleges in substance that it is 
          entitled to a 18.09% increase pursuant to docket OM-5395.

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

          An examination of docket OM-5395 discloses that under said 
          docket, the owner was entitled to a 5% rent increase of the rent 
          in effect in October, 1983, effective March 30, 1984 for all the 
          rent stabilized apartments in the subject premises due to the 
          "moderate rehabilitation" of the subject premises and was entitled 
          to an additional rent increase of 13.09% of the rent in effect in 
          October, 1983, with respect to any rent stabilized apartment that 
          has become vacant after October, 1983.

          In the instant case, the evidence of record discloses that 
          the tenant herein moved to the subject apartment on October 1, 
          1983, and has remained in occupancy.  Accordingly, the subject 
          apartment did not become vacant after the month of October 1983, 
          and the owner may not charge the complaining tenant more than the 
          5% rent increase allowed by the Rent Administrator for the 
          "moderate rehabilitation".   Therefore, the Rent Administrator's 
          order was warranted.

          Because this determination concerns lawful rents only through 
          May 31, 1987, the owner is cautioned to adjust subsequent rents 
          to an amount no greater than that determined by the Rent 
          Administrator's order plus any lawful increases and to register 
          any adjusted rents with this order and opinion being given as the 
          explanation for the adjustment.

          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 of the overcharge may 
          be offset 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, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is, affirmed.

          ISSUED



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                     




          BF 210287 RO