BG 410305 RT
                            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
      APPEAL OF                             DOCKET NO.:  BG 410305 RT

                CAROLYN SHERBIN,
                                            DRO DOCKET NO.: TC 074038 G
                                                            CDR 30,673
                              PETITIONER
      ----------------------------------X                                 


         ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                      AND
                         REMANDING PROCEEDING ON APPEAL


      On July 27, 1987, the above-named petitioner-tenant filed an appeal 
      against an order issued on June 26, 1987 by the District Rent 
      Administrator, 10 Columbus Circle New York, New York concerning the 
      housing accommodations known as Apartment 8B, 95 Christopher Street, 
      New York, New York wherein the District Rent Administrator 
      determined that the owner had not overcharged the tenant.

      The Commissioner notes that this proceeding was initiated prior to 
      April 1, 1984.  Sections 2526.1(a)(4) and 2521.1(d) of the Rent 
      Stabilization Code (effective May 1, 1987) governing rent overcharge 
      and fair market rent proceedings provide that determination of these 
      matters be based upon the law or code provisions in effect on March 31, 
      1984.  Therefore, unless otherwise indicated, reference to Sections of 
      the Rent Stabilization Code (Code) contained herein are to the Code in 
      effect on April 30, 1987.

      The record indicates that in July 1983 the tenant herein filed a 
      complaint of rent overcharge in which she stated that the rent for the 
      apartment was overestimated in "Fair Market Value".  In support of her 
      contention, the tenant submitted a redacted copy of the Maximum Base 
      Rent (MBR) schedule for the building indicating a 1972/1973 MBR OF 
      $139.34.

      In response, the owner stated that the subject apartment first became 
      rent stabilized on November 1, 1979 after it was vacancy decontrolled 
      from the Rent Control Law.  In support of such contention the owner 
      submitted copies of all leases from November 1, 1979 through June 30, 
      1984.  The owner also submitted a copy of a DC-2 Notice addressed to 
      the 1st Rent Stabilized Tenant












          BG 410305 RT

      (S. Halpert) who took occupancy pursuant to a 2 year lease commencing 
      November 1, 1979 at a monthly rental of $515.00.  The owner also 
      attached a photo copy of United States Postal Service (hereafter USPS) 
      Form 3800 (April 1976) "Receipt for Certified Mail".  However this form 
      was not completed with the name and address of the addressee nor was 
      it date stamped by the USPS.  In addition, the certified mail 
      registration number was omitted.

      In subsequent correspondence dated September 15, 1983 and August 28, 
      1985 the tenant through her representative specifically reiterated that 
      her complaint should be processed as a Fair Market Rent Appeal of the 
      initial rent charged on November 11, 1979 and that the owner had not 
      established proof of service of the DC-2 Notice.

      The tenant vacated the subject apartment on March 31, 1984 but 
      submitted a forwarding address.

      The Rent Administrator then issued the Order under appeal herein 
      finding that based on the initial Rent of $515.00 charged on November 
      1, 1979 that the owner had not collected a rent in excess of the lawful 
      stabilization rent and dismissed the tenant's complaint.

      In the petition, the tenant states in substance that the Rent 
      Administrator had erroneously failed to consider the tenant's Fair 
      Market Rent Appeal originally stated on her initial complaint and 
      failed to consider the tenant's objection stated in the correspondence 
      of September 15, 1983 and August 28, 1985 that the owner had failed to 
      verify the service of the DC-2 Notice by the submission of the required 
      proof of service by certified mail of the DC-2 notice on the First Rent 
      Stabilized tenant.

      In response to the tenant's petition, the owner stated in substance 
      that it did submit sufficient proof of service of the DC-2 Notice and 
      that the Rent Administrator's order was warranted.

      The Commissioner is of the opinion that this proceeding should be 
      remanded to afford the owner the opportunity to submit the required 
      proof of service of the DC-2 Notice on the First Rent Stabilized 
      tenant.  If the owner fails to submit valid proof of service of the DC- 
      2 Notice by certified mail on the first rent stabilized tenant, the 
      tenant's complaint must be processed as a fair market rent adjustment 
      application on the merits rather than a rent overcharge since in her 
      original complaint the tenant was questioning the initial legal 
      regulated rent of the subject apartment.

      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 was served with the required 
      DC-2 notice.







          BG 410305 RT

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

      ORDERED, that this petition be, and the same hereby is, granted and to 
      the extent of remanding this proceeding to the District Rent 
      Administrator for further processing in accordance with this order and 
      opinion.



      ISSUED:


                                              ------------------------
                                              JOSEPH A. D'AGOSTA
                                              Acting Deputy Commissioner
       
         
                                        






    

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