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. BJ 430389-RO
                            MAX OSTROW,          :   DRO DOCKET NO. 
                                  PETITIONER  :               U 3124275-RT
            ------------------------------------X


                ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


            On October 5, 1987, the above-named petitioner-owner filed a Petition 
            for Administrative Review of an order issued on September 8, 1987 by 
            the District Rent Administrator, 10 Columbus Circle, New York, New 
            York, concerning housing accommodations known as Apartment 6D at 10 
            Bennett Avenue, New York, New York, 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 Commissioner has reviewed all the evidence in the record and has 
            carefully considered that portion of the record relevant to the issues 
            raised by the administrative appeal.

            This proceeding was originally commenced by the filing of a fair market 
            rent appeal application by the tenant with the New York City 
            Conciliation and Appeals Board, one of the predecessor agencies to the 
            DHCR.  The tenant took occupancy pursuant to a lease commencing January 
            12, 1984 and expiring January 11, 1985 at a monthly rent of $399.87.

            In Order Number CDR 31,352, the District Rent Administrator adjusted 
            the initial legal regulated rent by establishing a fair market rent of 
            $344.26 effective January 12, 1984, the commencement date of the 
            initial rent stabilized lease, and directed the owner to refund excess 
            rent in the amount of $2,692.77 to the tenant.

            In this petition, the owner contends that he submitted full and timely 
            responses to all requests for information from the DHCR.  The owner 
            submits copies of answers submitted to the Administrator and 
            certificates of mailing.  In these answers the owner cited apartment 5A


















          DOC. NO.: BJ 430389-RO

            as a comparable apartment, included the lease for that apartment, and 
            also asserted that comparable apartments in the area at the time
            of the tenant's rental were being rented in the $550.00 per month 
            range, which could be confirmed by DHCR registration records.  The 
            owner also submits with his petition copies of New York Times 
            classified real estate listings for the period when the applicant took 
            occupancy.  Based on the comparable apartment in the building and rents 
            for comparable apartments in the area, the owner asserts that the 
            tenant's initial rent was lawful.

            In answer to this petition, the tenant asserts that there is no basis 
            to challenge the Administrator's order.

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

            Section 26-513 of the Rent Stabilization Law provides, in pertinent 
            part, that fair market rent adjustment applications are to be 
            determined by the use of special fair market rent guidelines orders 
            promulgated by the New York City Guidelines Board and by the rents 
            generally prevailing in the same area for substantially similar housing 
            accommodations.  In order to determine rents generally prevailing in 
            the same area for substantially similar housing accommodations, it is 
            DHCR's procedure for fair market rent appeal cases filed prior to April 
            1, 1984 to allow owners to submit June 30, 1974 free market rental data 
            for complete lines of apartments beginning with the subject line.  The 
            average of such comparable rentals will then be updated by annual 
            guidelines increases.  Alternatively, DHCR procedure allows owners to 
            have comparability determined on the basis of rents charged after June 
            30, 1974.  In order to use this method, owners were required prior to 
            November 1, 1984 to submit rental history data for all stabilized 
            apartments in the subject premises and subsequent to November 1, 1984 
            to submit such data for complete lines of apartments beginning with the 
            subject line.  Post-June 30, 1974 rent data will be utilized if the 
            comparable apartment was rented to a first stabilized tenant within one 
            year of the renting of the subject apartment and if the owner submits 
            proof of service of an initial legal regulated rent notice (DC-2 
            Notice) or apartment registration form indicating that the rent is not 
            subject to challenge.

            The record in this case indicates that the owner was afforded an 
            opportunity by notice dated March 14, 1986 to submit June 30, 1974 or 
            post-June 30, 1974 comparability data as outlined above.  The owner 
            failed to submit adequate data, including data for complete lines of 
            apartments beginning with the subject line and proof of service of DC-2 
            notices or apartment registration forms.  In addition, the classified 
            real estate listings submitted by the owner reflect rents being asked 
            at the time and do not constitute adequate documentation of rents being 
            charged.



            Although the owner requested that rents for comparable apartments in 
            the area be obtained from DHCR's registration records, the owner is 




          DOC. NO.: BJ 430389-RO

            required to submit the comparability data which the owner wishes to 
            have considered in the comparability study.  Court precedent has held 
            that comparability in fair market rent appeal cases must be based on 
            individualized comparability studies and that where no comparability 
            data is available, the fair market rent may be determined based on the 
            special fair market rent guidelines alone.  The DHCR is not obligated 
            to search its records for usable comparability data, which might not be 
            available in every case.  If an owner wishes to exercise the option of 
            having the comparability data considered in the determination of the 
            fair market rent, the burden is on the owner to submit such data, 
            including leases or other rental documentation, as well as proof of 
            service of DC-2 notices or apartment registration forms, which is not 
            available from DHCR records.

            The Commissioner therefore finds that the Administrator properly 
            determined the fair market rent using the special fair market rent 
            guideline alone and that the owner's petition should be denied.


            THEREFORE, in accordance with the Rent Stabilization Law and Code, it 
            is

            ORDERED, that this petition be and the same hereby is denied and the 
            District Rent Administrator's order be and the same hereby is affirmed.

            ISSUED:

                                                                            
                                               ELLIOT SANDER
                                               Deputy Commissioner
                 













                                ADMINISTRATIVE REVIEW BUREAU
                                     COVERING MEMORANDUM




            ARB Docket No.:               BJ 430389-RO

            DRO Docket No/Order No.:      U 3124275-RT

            Tenant(s):                    Emelia Seubert

            Owner:                        Max Ostrow

            Code Section:                 

            Premises:                     10 Bennett Ave., New York, N.Y.
                                          Apt. 6D

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

            District Rent Administrator properly determined the fair market rent 
            based on the special guideline alone where the owner failed to submit 
            adequate comparability data.  The DHCR is not obligated to search its 
            registration records for usable comparability data.


            APPROVED:



            Processing Attorney:                                             

            Supervising Attorney:                                           

            Deputy Counsel:                                                  

            Deputy Commissioner:                                             

            Mailed copies of Order and Determination to:
                             Tenant(s)                 
              Owner             
              Tenant's Atty             
              Owner's Atty              


              Date:              :  by               
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