OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO. BF 210387 RO
                                              :  DRO DOCKET NO. K3103401-R
               M.D.M. ASSOCIATES                 TENANT: YAKOV FEON    

                                PETITIONER    : 


               On June 18, 1987, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review  against  an  order  issued  on
          August 20, 1986, by the Rent Administrator,  10  Columbus  Circle,
          New York, New York, concerning the housing accommodations known as 
          3091 Brighton 5th Street, Brooklyn, New York,  Apartment  No.  6C,
          wherein the Rent  Administrator  determined  that  the  owner  had
          overcharged the tenant. 

               The record indicates that in March 1984,  the  tenant  herein
          filed a complaint of rent overcharge in which he  stated  that  he
          moved to the subject apartment on February 1, 1979 at a rental  of
          $315.00 per month and that the  prior  tenant  had  lived  in  the
          subject apartment for thirty years. 
               The  owner  did  not  submit  a  response  to  the   tenant's
          complaint.  The Rent Administrator then  issued  the  order  under
          appeal herein  finding  a  rent  overcharge  of  $3394.06  through
          January 1, 1986 on the basis that the owner  failed  to  submit  a
          complete rental history. 

               On appeal, the current owner  stated  in  substance  that  it
          acquired ownership of the subject premises in August 1984, but was 
          never served with a copy of the complaint nor a copy of  the  Rent
          Administrator's  order.   The  current  owner  also  submitted   a
          complete rental history for  the  subject  apartment  including  a
          copy of a Landlord's Report of Statutory Decontrol indicating that 
          the tenant herein was the first rent stabilized tenant.

               The Commissioner is of the opinion that this petition  should
          be granted to the extent of remanding the proceeding so  that  the
          tenant's  complaint  can  be  processed  as  a  fair  market  rent
          adjustment application rather than a rent overcharge complaint.

               At  the  outset,  the  current  owner's  petition   must   be
          considered timely filed since the record shows  that  the  current
          owner was not served with a copy of the Rent Administrator's order 
          although it had registered as the owner of the subject premises in 
          1985 prior to the issuance of the Rent Administrator's order.
          BF 210387 RO

               In this case rent records for the subject apartment including 
          a Report of Statutory Decontrol discloses that the  tenant  herein
          was the first  rent  stabilized  tenant.   Accordingly,  the  Rent
          Administrator's order finding a rent overcharge on the basis  that
          the owner failed to submit a complete rental history was in error. 
          Rather the tenant's complaint must be treated  as  a  fair  market
          rent  adjustment  application  since  in  his  complaint  he   was
          questioning the initial legal regulated  rent.   Accordingly  this
          proceeding is being remanded to treat the tenant's complaint as  a
          fair market rent adjustment application filed prior  to  April  1,
          1984.  All parties are to be notified and given a chance to submit 
          evidence in such remanded  proceeding  including  evidence  as  to
          whether the tenant  herein  was  served  with  the  required  DC=2

               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.  The automatic stay of  so
          much of the Rent Administrator's order as  directed  a  refund  is
          hereby  continued  until  a  new  order  is  issued  upon  remand.
          However, the Administrator's determination as to the rent  is  not
          stayed and shall remain in  effect,  except  for  any  adjustments
          pursuant to lease renewals, until the Administrator issues  a  new
          order upon remand. 


                                          ELLIOT SANDER
                                          Deputy Commissioner


                            ADMINISTRATIVE REVIEW BUREAU
                                 COVERING MEMORANDUM

          ARB Docket No.: BF 210387 RO

          DRO Docket No/Order No.: K3103401-R

          Tenant(s): Yakov Feon

          Owner: M.D.M. Associates

          Code Section:

          Premises: 3091 Brighton 5th Street, Brooklyn, New York, Apt. 6C

          Order       and        Opinion         Remanding        Proceeding
               Proceeding  remanded  to  treat  tenant's   rent   overcharge
          complaint as a fair market rent appeal.


          Processing Attorney:                                             

          Supervising Attorney:                                            

          Bureau Chief:                                                    

          Deputy Commissioner:                                             

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

                           Date:              :  by               



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