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
          APPEALS OF                              DOCKET NO. BF 210388RO
                                              :             FB 210343 RT
                                                 DRO DOCKET NO. TC-72486-G
               KINGS ELDORADO ASSOCIATES                        ZCH210286-R
                                                 TENANT: EDWARD LEITNER
                                PETITIONERS    : 
          ------------------------------------X 

                  ORDER AND OPINION REMANDING PROCEEDING ON APPEAL


               On June 17, 1987, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review against an order issued on  May
          13, 1987, by the Rent Administrator, 10 Columbus Circle, New York, 
          New York, and on February 26, 1991, the abov -  named  petitioner-
          tenant filed a Petition for Administrative Review against an order 
          issued on January 29, 1991 by the Rent Administrator, Gertz Plaza, 
          Queens, New York, concerning the housing accommodations  known  as
          1996 Ocean Avenue, Brooklyn, New York, Apartment No. 3B.   In  the
          order issued on May 13, 1987, the  Rent  Administrator  determined
          that the owner had overcharged the tenant, and in the order issued 
          on January 29, 1991, the Rent Administrator  determined  that  the
          owner was  following  the  May  13,  1987  order  and  no  further
          overcharge had occurred from January 1, 1988 to January 29,  1991.
          These petitions are being consolidated for disposition herein. 

               The record indicates that in May 1983 the tenant herein filed 
          a complaint of rent overcharge in which he stated that a  previous
          tenant, Mr. Heller, was paying $270.00 per month in rent  when  he
          vacated on December 31, 1981 and that he  doesn't  understand  why
          the rent was increased  to  $435.00  upon  the  occupancy  of  the
          subsequent tenant, Rabinowitz, on January  1,  1982.   The  tenant
          herein moved to the subject apartment on  January  1,  1983  at  a
          rental of $475.00 per month.

               In answer to the complaint, the  owner  stated  in  substance
          that the  subject  apartment  was  decontrolled  when  Mr.  Heller
          vacated.   Copies  of  leases  for  the  subject  apartment   were
          submitted from January 1, 1982.

               In Order Number CDR 30,306, the Rent Administrator determined 
          that a rent overcharge of $24,170.98 had occurred through May  31,
          1987 including treble damages on the overcharge occurring  on  and
          after April 1, 1984 on the basis that the owner failed to submit a 
          complete rental history.

               Subsequently  the  tenant  filed  another   rent   overcharge
          complaint in which he stated that the owner was  not  listing  the
          BF 210388 RO, FB 210343 RT









          rent on renewal leases in accordance with the May  13,  1987  Rent
          Administrator's order although the owner was charging the  correct
          rent in accordance with such order.  On January 29, 1991, the Rent 
          Administrator  issued  an  order  finding   no   additional   rent
          overcharge occurred taking the May 13, 1987 order into account and 
          stating that the tenant had not filed an objection to the April 1, 
          1984 registered rent.

               In the tenant's petition, the  tenant  alleges  in  substance
          that he did file an objection to the April 1, 1984 registered rent 
          and that repayment of all rent overcharges is warranted.

               In the owner's appeal, the owner alleges in substance that it 
          did submit a complete rental history from January 1, 1982, that no 
          rent overcharge  occurred,  and  that  it  should  not  have  been
          defaulted.
               
               The Commissioner is  of  the  opinion  that  these  petitions
          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.

               In this case rent records for the subject apartment including 
          maximum base rent records indicate that the subject apartment  was
          rent controlled in 1981 and that a Mr. Heller was  the  last  rent
          controlled tenant.  Further a Mr. Rabinowitz, who  took  occupancy
          on January 1, 1982, was the first rent stabilized tenant.  Since a 
          complete rental history from January 1, 1982  was  submitted,  the
          Rent Administrator's May 13, 1987 order finding a rent  overcharge
          on the basis that the owner failed to  submit  a  complete  rental
          history and the Rent ADministrator's January  29,  1991  follow-up
          order must be revoked.  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 first rent stabilized  tenant
          Rabinowitz and/or the tenant herein were served with the  required
          DC-2 notice.

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










          BF 210388 RO, FB 210343 RT










               ORDERED, that these petitions for administrative  review  be,
          and the same hereby are, 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 May 13, 1987 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. 

          ISSUED



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




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






























                            ADMINISTRATIVE REVIEW BUREAU
                                 COVERING MEMORANDUM










          ARB Docket No.: BF 210388 RO, FB 210343 RT

          DRO Docket No/Order No.: TC-72486-G, ZCH210286-R

          Tenant(s): Edward Leitner

          Owner: Kings Eldorado Associates

          Code Section:

          Premises: 1996 Ocean Avenue, Brooklyn, New York, Apt. 3B

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










          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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