BG 110202 RT

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

          APPEAL OF                              DOCKET NO. BG 110202 RT
                                              :  DRO DOCKET NO.Q-3122531-R/T
               MARTIN WERBLOW                    OWNER: B & K REALTY CO.

                                PETITIONER    : 

               On July 14, 1987, the above-named petitioner-tenant filed a 
          Petition for Administrative Review against an order issued on June 
          12, 1987, by the Rent Administrator, 10 Columbus Circle, New York, 
          New York, concerning the housing accommodations known as 62-98 
          Saunders Street, Queens, New York, Apartment No. 3E, wherein the 
          Rent Administrator dismissed the tenant's rent overcharge 

          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 March, 1984, by 
          the filing of a rent overcharge complaint and a fair market rent 
          adjustment application by the tenant who took occupancy pursuant 
          to a lease commencing October 15, 1976 and expiring October 31, 
          1978 at a monthly rent of $225.00.

          In Order Number CDR 30,544, the Rent Administrator terminated 
          the proceeding on the basis that a decision regarding this 
          complaint had previously been issued on June 21, 1979 under CAB 
          Opinion Number 9986, Docket Number TC-027661-G.

          In this petition, the tenant alleges in substance that CAB 
          Opinion Number 9986 did not deal with any leases signed after June 
          21, 1979 and that the DHCR should review leases signed after that 
          date; that on July 12, 1985, the tenant signed a lease for $316.10 
          per month retroactive to January 1, 1985 which violated DHCR 
          policy against retroactive lease increases and that DHCR should 
          review the rent records to determine if the tenant's initial rent 
          exceeds the fair market rent.

          BG 110202 RT

          In answer to the tenant's petition, the owner stated in 
          substance that the tenant's July 1985 lease renewal effective 
          January 1, 1985 was in accordance with a May 9, 1985 court 
          stipulation.  In support of its contention, the owner submitted a 
          copy of the aforementioned court stipulation.

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

          An examination of the records in this case discloses that 
          pursuant to the decision in CAB Opinion Number 9986, the monthly 
          lawful stabilization rent, not including temporary fuel surcharges 
          which the owner charged and to which the owner was entitled, was 
          $250.00 from November 1, 1978 to October 31, 1981.  The records 
          further show that the owner then increased the rent to $290.00 
          effective November 1, 1981 due to a 16% increase for a three year 
          renewal lease pursuant to Guideline 13, and that the owner then 
          increased the rent to $316.10 effective January 1, 1985 due to a 
          9% increase for a two year renewal lease pursuant to Guideline 
          16.  The effective date of January 1, 1985 was pursuant to a court 
          stipulation and occurred after the termination date of the 
          November 1, 1981 renewal lease and the Commissioner is of the 
          opinion that the use of such effective date was appropriate.  
          Since all increases after June 21, 1979 (date CAB Opinion Number 
          9986 was issued) were in accordance with relevant guideline 
          increases as outlined above, it is apparent that no rent 
          overcharge occurred through December 31, 1986. 

          With regard to the tenant's contention that the records 
          should be reviewed to determine if the tenant's initial rent 
          exceeded the fair market rent, an examination of the rent records 
          discloses that the subject apartment was vacancy decontrolled 
          during the period from July 1, 1971 through December 31, 1973 and 
          did not become subject to the Rent Stabilization Law until July 1, 
          1974.  Under such circumstances, the tenant is not entitled to 
          file a fair market rent appeal.

          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.


                                          ELLIOT SANDER
                                          Deputy Commissioner


          BG 110202 RT


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