BG 210244 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 210244 RO
                                             DISTRICT RENT OFFICE
           JRD Management Corp.,             DOCKET NO.: K 3115400 R
                                                         CDR 30,674

                                             TENANT: A.R. Lea                

                                     IN PART

      On July 8, 1987, the above-named petitioner-owner filed a Petition for 
      Administrative Review against an order issued on June 26, 1987, by the 
      Rent Administrator, 10 Columbus Circle, Brooklyn, New York, concerning 
      the housing accommodations known as 760 Rogers Avenue, New York, 
      Apartment No. 4R, 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 

      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 of a complaint 
      of rent overcharge.  The owner was served with a copy of the complaint 
      and was directed to submit a complete rental history. 
      In answer to the complaint, the owner stated in substance that a refund 
      of $968.49 had been credited to the tenant on March 23, 1984 and that 
      the rent had been reduced to $276.16 effective April 1, 1984.

      The owner submitted all leases in effect from May 15, 1971 through 
      April 30, 1985.

      During the processing of the order tenant acknowledged the owner's 
      credit of $968.49 which was used as rent payments for April, May and 

          BG 210244 RO

      part of June 1984. as well as major capital improvements (hereafter 
      MCI) rent arrears.

      In Order Number CDR 30,674, the Rent Administrator established the 
      lawful stabilization rent as $274.26 effective May 1, 1982, determined 
      that the tenant had been overcharged and directed a refund to the 
      tenant of $176.32 including interest, on that portion of the overcharge 
      collected on and after April 1, 1984.

      In this petition, the owner alleges in substance that the Rent 
      Administrator's order failed to include the 1/2 percent stabilizer 
      increase permitted under Rent Guidelines 6, 6A and increases due 
      pursuant to MCI orders CDR 29,557 effective February 28, 1982 and CDR 
      00296 effective July 1, 1982.

      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 its contentions that the 1/2 percent stabilizer was not 
      included in the computation of the tenant's vacancy lease term.  
      Furthermore, the increases due the owner pursuant to MCI orders CDR 
      29,557 and CDR 00296 had not been included in the computation of the 
      lawful stabilization rent.

      The owner however incorrectly computated the percentage of the increase 
      in both MCI orders above the rent on the date of issuance of the MCI 
      order rather than the lawful rent on the rent roll date specified in 
      each order.

      Taking the aforementioned factors into account the Commissioner has 
      recalculated the lawful stabilization rents by the inclusion of the 1/2 
      percent stabilizer and the corrected MCI increases.  The lawful 
      stabilization rents and amount of rent overcharge including interest on 
      overcharges occurring on or after April 1, 1984 are set forth on the 
      Amended Rent Calculation Chart attached hereto and made a part hereof.  
      Furthermore, the Amended Rent Calculation Chart reflects the sum of 
      $968.49 as an offset credit against the total overcharge.

      Because this determination concerns lawful rents only through April 30, 
      1985, the owner is cautioned to adjust subsequent rents to an amount no 
      greater than that determined by this order plus any lawful increases, 
      and to register any adjusted rents with this order and opinion being 
      given as the explanation for the adjustment.

      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 thereof of the overcharge may 

          BG 210244 RO

      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, granted in part, and, that the order of the Rent 
      Administrator be, and the same hereby is, modified in accordance with 
      this order and opinion.  The lawful stabilization rents and the amount 
      of the rent overcharge are established on the attached chart which is 
      fully made a part of this order.  The amount of the rent overcharge 
      through April 30, 1985 is $106.25.


                                      JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner


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