Docket Number: BG 110067-RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO.: BG 110067-RO 
             MOHAMMAD MALIK,                     DRO DOCKET NO.: ZQ-004005-R
                                PETITIONER       Tenant: Alicia Garcia
                                       IN PART

          On July 13, 1987 the above named petitioner-owner filed a Petition 
          for Administrative Review against an order issued on June 9,  1987
          by the Rent Administrator, 92-31 Union Hall Street,  Jamaica,  New
          York, concerning the housing accommodations known as Apartment  4B
          at  47-40  41st  Street,  Queens,  New  York,  wherein  the   Rent
          Administrator  determined  that  the  owner  had  overcharged  the

          The issue in this appeal is whether the Rent Administrator's order 
          was warranted.

          The applicable section of the Law is Section 2526.1  of  the  Rent
          Stabilization Code.

          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
          September 1985 of a rent overcharge complaint by  the  tenant  who
          stated that she first moved to the subject apartment on  September
          15, 1984.

          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 April 1, 1984 for the subject apartment and claimed a 
          5% vacancy allowance pursuant to Guideline 15.  The owner was then 
          specifically advised that in order to ascertain if it was entitled 
          to receive a guideline 15 vacancy allowance  it  should  submit  a
          rental history from July 1, 1975.  No earlier rental  history  was
          submitted by the owner.

          In Order Number ZQ-004005-R,  the  Rent  Administrator  determined
          that the tenant had been overcharged in the  amount  of  $1,371.54
          including excess security and interest.  No credit was given for a 
          Guideline 15 vacancy increase  in  the  calculation  of  the  rent

          In this petition, the owner contends in substance that  there  was

          Docket Number: BG 110067-RO

          no rent overcharge in that it was not credited with a Guideline 15 
          5% vacancy allowance,  that  it  was  not  credited  with  a  rent
          increase for prior tenant's Halatshian's vacancy lease and that it 
          was not credited with a major capital  improvement  rent  increase
          pursuant to docket OM-4588.

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

          An examination of the records in  this  case  discloses  that  the
          owner is correct in his contention that he was not credited with a 
          major capital improvement rent increase due to a new  roof  and  a
          new oil burner-boiler pursuant to docket OM-4588 to which  he  was
          entitled.  However the owner was not  entitled  to  a  5%  vacancy
          increase pursuant to Guideline 15 in that in  order  to  obtain  a
          Guideline 15 vacancy increase of 5%, total vacancy allowance  from
          July 1, 1979 to June 30, 1983 must have been less than 15%.  Since 
          the owner did not provide a  rental  history  from  July  1,  1979
          although specifically requested  to  do  so,  the  owner  has  not
          established that he  was  entitled  to  a  5%  vacancy  allowance.
          Further  the  owner  was  not  entitled  to  have  prior  tenant's
          Halatshian's  August  15,  1984  vacancy   lease   considered   in
          determining the lawful stabilization rent  of  the  tenant  herein
          since such vacancy lease was in effect  for  only  one  month  and
          occurred during the same guidelines period as  the  September  15,
          1984 vacancy lease of  the  tenant  herein.   The  compounding  of
          guideline  increases  during  the  same   guidelines   period   is

          Taking the aforementioned factors into account,  the  Commissioner
          has recalculated the lawful stabilization rents and amount of  the
          rent  overcharge  for   the   subject   apartment.    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.

          Because this determination concerns lawful rents only through  the
          date of September 14, 1986 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 this Order and Opinion 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
          twelve equal monthly installments.

          Docket Number: BG 110067-RO

          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, 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 Rent Stabilization Law and Code, 
          it is

          ORDERED, that this petition be, and the same hereby is granted  in
          part and the Rent Administrator's order 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 September  14,  1986  is


                                          ELLIOT SANDER
                                          Deputy Commissioner


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