BJ 430025 RO
                             STATE OF NEW YORK
                          OFFICE OF RENT ADMINISTRATION
                                   GERTZ PLAZA
                             92-31 UNION HALL STREET
                             JAMAICA, NEW YORK 11433

      APPEAL OF                              DOCKET NO.: BJ 430025 RO

                                             DISTRICT RENT OFFICE
           Solil Management Corp.,           DOCKET NO.: L-3116069-T

                                             TENANT: Andrew Richter           

                                     IN PART

      On October 14, 1987, the above-named petitioner-Solil Management Corp., 
      filed a Petition for Administrative Review of an order issued on October 
      6, 1987, by the Rent Administrator, 10 Columbus Circle, New York, 
      concerning the housing accommodations known as  414 East 58th Street, 
      New York, New York, Apartment No. C2, wherein the District Rent 
      Administrator determined the fair market rent pursuant to the special 
      fair market rent guideline promulgated by the New York City Rent 
      Guidelines Board for use in calculating fair market rent appeals. 

      The issue in this appeal is whether the Administrator decision 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 fair market 
      rent appeal application by the tenant.  The tenant took occupancy 
      pursuant to a lease commencing September 1, 1980 and expiring September 
      30, 1982 at a monthly rent of $325.00. 

      In Order Number  CDR 31,496, the District Rent Administrator adjusted 
      the initial legal regulated rent by establishing a fair market rent of 
      $223.41 effective September 1, 1980, the commencement date of the 
      initial rent stabilized lease, and directed the owner to refund to the 
      tenant of excess rent in the 
      amount of $9,558.86.

      In this petition, the owner contends that the District Rent 
      Administrator's Order is incorrect and should be modified because the 

          BJ 430025 RO

      Administrator failed to add the $15.00 surcharge during Rent Guidelines 
      17 and 18.

      In answer to this petition, the tenant contends that there is no $15.00 
      surcharge pursuant to Rent Guideline 18 when the tenant was charged a 
      supplementary adjustment under Guideline 17.

      The Commissioner is of the opinion that this petition should be granted 
      in part.  The owner is correct that the Administrator should have 
      included a $15.00 supplementary adjustment pursuant to Guideline 17 
      which allows such supplementary adjustment for apartments renting for 
      less than $300 per month on September 30, 1985.  The tenant is also 
      correct that there is no supplementary adjustment pursuant to Guideline 
      18 when a previous adjustment was charged pursuant to Guideline 17.  The 
      tenant's lawful stabilized rent is recalculated as shown on the annexed 
      rental chart which is hereby made a part of this Order.

      The owner is directed to roll back the rent to the lawful stabilized 
      rents consistent with this decision and to refund or fully credit 
      against future rents over a period not exceeding six months from the 
      date of receipt of this order, the excess rent collected by the owner.

      In the event the owner does not take appropriate action to comply within 
      sixty (60) days from the date of this order, the tenant may credit the 
      excess rent collected by the owner against the next month(s) rent until 
      fully offset.

      Because this determination concerns lawful rents only through September 
      30, 1977 the owner is cautioned to adjust subsequent rents to an amount 
      no greater than that determined by this order plus any lawful increases 
      and to register any adjusted rents with this order and opinion being 
      given as the explanation for the adjustment.

      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 to the extent hereinabove 
      indicated.  The amount of excess rent owed to the tenant is $9,172.29.

                                      JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner


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