BI 110045 RO

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

          APPEAL OF                             DOCKET NO.:  BI 110045 RO

                        ALLAN FISHER,           DRO DOCKET NO.: 50216

                                                TENANT: RANDOLPH JOHNSON      


          On September 11, 1987 the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on      
          August 25, 1987, by the Rent Administrator, 10 Columbus Circle, New 
          York, New York, concerning the housing accommodations known as     
          89-29 163rd Street, Jamaica, New York, Apartment No. 2D, 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 rent 
          overcharge complaint by the tenant in August 1984.  The owner was 
          served with a copy of the tenant's complaint and submitted a 
          complete rental history as required.  

          In Order Number 50216, the Rent Administrator established the 
          lawful stabilized rent as $306.25 effective March 1, 1982, 
          determined that the tenant had been overcharged and directed a 
          refund to the tenant of $1,468.71 including treble damages on 
          overcharges collected on and after April 1, 1984.

          In this petition, the owner contends in substance that there is not 
          rent overcharge since the March 1, 1982 lawful stabilization rent 
          should have been calculated at 25% above the immediately prior rent 
          of $284.20 rather than at 25% above the base date rent of $245.00.

          In answer to the owner's petition, the tenant stated in substance 
          that the Rent Administrator's order was warranted.
          The Commissioner is of the opinion that this petition should be 

          BI 110045 RO

          An examination of the record in this case discloses that the Rent 
          Administrator correctly calculated the March 1, 1982 lawful 
          stabilization rent at $306.25 pursuant to a one year vacancy lease 
          under Guideline 13 (25% over the base date rent of $245.00).  It is 
          noted that the immediately prior rent of $284.20 was effective 
          January 1, 1982 pursuant to a three year renewal lease of the prior 
          tenant also under Guideline 13.  The compounding of guideline 
          increases during the same guidelines period is prohibited so that 
          the Rent Administrator correctly did not consider the January 1, 
          1982 rent of $284.20 in determining the March 1, 1982 lawful 
          stabilization rent.

          Accordingly, the Rent Administrator's order was warranted.

          Because this determination concerns lawful rents only through      
          August 31, 1987, the owner is cautioned to adjust subsequent rents 
          to an amount no greater than that determined by the Rent 
          Administrator's order plus any lawful increases, and to register 
          any adjusted rents with this order and opinion being given as the 
          explanation for the adjustment.

          This order may, 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, be filed and enforced in the same 
          manner as a judgment or not in excess of twenty percent per month 
          thereof may 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, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is, affirmed.


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner


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