BI 410285 RO

                                  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. BI 410285 RO
                                              :  DRO DOCKET NO.L-3110519 RT
               PLAZA  REALTY  INVESTORS             TENANT:  MELVIN  BELDOCK
             

                                PETITIONER    : 
          ------------------------------------X 

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN 
          PART


               On September 17, 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 
          120 East 34th Street, New  York,  New  York,  Apartment  No.  6-0,
          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 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 by the  tenant.   In  an
          answer to the complaint filed on  November  26,  1986,  the  owner
          submitted a rental history for the subject  apartment  and  stated
          that it was refunding to the tenant $6,420.36 in ten payments over 
          the course of the next ten months and was  reducing  the  tenant's
          rent from $719.97 to $648.73 effective December 1, 1986.

               In Order Number CDR 31,175, the Rent Administrator determined 
          that the tenant had been overcharged in the amount  of  $7,283.36,
          including interest on the overcharge occurring after April 1, 1984 
          and excess security, from April 1, 1978 to August 31, 1987, and
          directed the owner to refund such overcharge to  the  tenant.   In
          calculating the overcharge, the Rent Administrator  did  not  take
          into account the rent reduction effective December 1, 1986 nor the 
          refund of any portion of the overcharge by the owner.

               In this petition, the owner contends in substance that the 








          BI 410285 RO

          Rent Administrator's order failed to take into  account  the  rent
          reduction effective December  1,  1986,  and  the  refund  of  the
          overcharge and that in addition the  amount  of  interest  on  the
          overcharge  occurring  after  April  1,   1984   was   incorrectly
          calculated due to these factors.

               In answer to the owner's petition,  the  tenant  acknowledged
          the payment of the $6,420.36 refund, but requested the payment  of
          interest and treble damages on the overcharges  occurring  on  and
          after April 1, 1984.

               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  contention  that  it  should  have  been
          credited with reducing the tenant's  rent  effective  December  1,
          1986, and refunding $6,420.36 to the tenant.  However,  the  owner
          is still liable for interest on the overcharge from April 1,  1984
          to December 1, 1986 - the date of the rent reduction.  Taking into 
          account the rent reduction from $719.97  to  $648.73  (the  lawful
          stabilization  rent)  effective  December  1,  1986,   the   total
          overcharge from April 1, 1978 through August 31,  1987,  including
          interest on the overcharge occurring on and after  April  1,  1984
          and excess security,  is  $6,581.93  (rather  than  the  $7,283.36
          calculated by the Rent  Administrator).   The  owner's  refund  of
          $6,420.36 is  then  subtracted  from  $6,581.93  leaving  a  total
          remaining overcharge of $161.57 to be refunded to the tenant.

               With regard to the tenant's contention  that  treble  damages
          are  warranted,  it  is  noted  that  such  issue  could  only  be
          considered  if  the  tenant  had  filed  his  own   petition   for
          administrative  review  and  not  in  an  answer  to  the  owner's
          petition.

               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 amount  of  the  rent
          overcharge through August 31, 1987 is $161.57, taking into account 
          the owner's rent reduction effective December 1, 1986  and  refund
          of $6,420.36, and the lawful stabilization rent effective April 1, 
          1986 through March 31, 1988 is $648.73.

          ISSUED


                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                     






          BI 410285 RO































    

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