BI 210134 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 210134 RO
                                              :  DRO DOCKET NO.K-3101797-R
               ARTHUR MANAGEMENT                 TENANT: ARKADY BULOCHNIKOV   

                                PETITIONER    : 

               On September 2, 1987, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on    
          March 5, 1987, by the Rent Administrator, Gertz Plaza, Queens,     
          New York, concerning the housing accommodations known as           
          901 Avenue H, Brooklyn, New York, Apartment No. 2B, wherein the 
          Rent Administrator determined that the owner had overcharged the 
          tenant.  The petition is accepted as timely filed because the Rent 
          Administrator's order was sent to the owner at an incorrect 
          address (different address from owner's registered address with 
          the DHCR) and was returned by the Post Office as undelivered.

          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 February, 1984,   
          by the filing of a rent overcharge complaint by the tenant who 
          stated that he first moved to the subject apartment on June 1, 
          1982 at a rental of $475.00.  In answer to the complaint, the 
          owner submitted a copy of a DC-2 Notice showing that the initial 
          legal regulated rent was $325.00 effective June 1, 1979.

          In Order Number CDR 29,237, the Rent Administrator 
          determined that the tenant had been overcharged in the amount of 
          $3,751.13, on the basis that the initial legal regulated rent was 
          $325.00 effective June 1, 1982.

          In this petition, the owner contends in substance that there 
          is no rent overcharge in that the Rent Administrator mistakenly 
          listed the initial legal regulated rent as $325.00 effective June 
          1, 1982 rather than June 1, 1979.  In support of such contention, 

          BI 210134 RO

          the owner submitted a complete rental history from June 1, 1979 
          including copies of leases and a rent ledger.

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

          An examination of the records in this case discloses that the 
          owner is correct in its contention that the Rent Administrator 
          incorrectly listed the date of the initial legal regulated rent as 
          June 1, 1982 rather than June 1, 1979.  When this error is 
          corrected, it is apparent that no rent overcharge occurred.  The 
          initial legal regulated rent was $325.00 effective June 1, 1979; 
          it was then increased to $380.25 effective June 1, 1981 based on a 
          three year lease renewal by the prior tenant and then increased to 
          $475.00 effective June 1, 1982 based on a two year vacancy lease 
          by the tenant herein - all in accordance with appropriate 
          guideline increases and vacancy allowances.  Accordingly, there 
          was no rent overcharge.

          If the owner has already complied with the Rent 
          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 24 equal monthly installments.  Should the 
          tenant vacate after the issuance of this order or have already 
          vacated, said arrears shall be payable immediately.

          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, that the order of the Rent 
          Administrator be, and the same hereby is, revoked, and it is 
          found that no rent overcharge occurred.


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner


          BI 210134 RO


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