BI 410288 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 410288 RO
                                              :  DRO DOCKET NO.L-3115753-R
               PIETRO MARTIRE                    TENANT: SUSAN RIBNER

                                PETITIONER    : 

               On September 14, 1987, the above-named petitioner-owner filed 
          a Petition for Administrative Review against an order issued on 
          August 12, 1987, by the Rent Administrator, 10 Columbus Circle, New 
          York, New York, concerning the housing accommodations known as 317 
          West 100th Street, New York, New York, Apartment No. 3F, wherein the 
          Rent Administrator determined that the tenant had been 

          The Commissioner notes that this proceeding was filed 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 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 by the filing of a 
          rent overcharge complaint by the tenant in March 1984.  The tenant 
          took occupancy pursuant to a lease commencing June 1, 1977 and 
          expiring May 31, 1979 at a monthly rent of $230.00.  The owner was 
          served with a copy of the tenant's complaint and submitted a 
          complete rental history as required.

          In Order Number CDR 31,032, the Rent Administrator 
          established the lawful stabilized rent as $286.59 effective June 
          1, 1981, determined that the tenant had been overcharged and 

          BI 410288 RO
          directed a refund of $200.21, including interest on overcharges 
          collected after April 1, 1984, to the tenant.

          In this petition, the owner contends in substance that there 
          was no rent overcharge in that the Rent Administrator failed to 
          credit it with a 2% fuel surcharge effective June 1, 1979.

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

          An examination of the Rent Administrator's order discloses 
          that the owner was credited with the 2% fuel surcharge in the 
          lease effective June 1, 1979.  The owner is advised that this 
          credit of the fuel surcharge is explained on page 4 of the rent 
          calculation chart under the column entitled " Sum of Temporary 
          Adjustments Pre 4/1/84".  However, it is noted that the 2% fuel 
          surcharge was temporary in nature and could only be collected 
          during the lease period from June 1, 1979 to May 31, 1981 and was 
          not part of the base rent for purposes of calculating future 
          guideline increases.  It is further noted that the overcharge 
          found by the Rent Administrator resulted from the owner's 
          continuing to charge the temporary 2% fuel surcharge in the next 
          lease commencing on June 1, 1981 which is prohibited as explained 
          above.  Accordingly, the Rent Administrator's order was warranted.

          Because this determination concerns lawful rents only through 
          May 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.

          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 
          of the overcharge 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.


                                          ELLIOT SANDER
                                          Deputy Commissioner


          BI 410288 RO


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