BK 110245 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

          APPEAL OF                               DOCKET NO.:  BK 110245 RO

                                                  DRO DOCKET NO.: 42508
                                                  EXAMINING UNIT
                                                  TENANT:  JOSEPH TEICHER

                                       IN PART

          On November 27, 1987, the above-named petitioner filed a Petition 
          for Administrative Review against an order issued on November  4,
          1987 by the Rent Administrator, 10 Columbus Circle, New York, New 
          York concerning the housing accommodations known as 152-75  Jewel
          Avenue,  Apartment  145A,  Flushing,   New   York   wherein   the
          Administrator determined that  an  overcharge  had  occurred  and
          directed the owner to refund an overcharge of  $154.48  inclusive
          of excess security and interest.

          The Commissioner has reviewed all of the evidence in  the  record
          and has carefully considered that portion of the record  relevant
          to the issues raised by the administrative appeal.

          The tenant commenced this proceeding on August 5, 1984 by  filing
          an objection to the 1984 registration, alleging inter  alia  that
          the rent being paid was an overcharge.

          The owner responded by submitting a copy of the lease  in  effect
          on April 1, 1980, the base rent date, and all subsequent  leases.
          The owner also submitted  a  copy  of  a  granted  Major  Capital
          Improvement (MCI) increase.

          In the order here under review, the Administrator determined that 
          an overcharge  of  $154.48  inclusive  of  excess  security,  and
          interest on the overcharge occurring on or after  April  1,  1984
          had been collected.

          In its appeal, the owner contends that arithmetic errors and  the
          use  of  the  actual  rent  charged,   instead   of   the   legal
          stabilization rent,  as  the  base  date  rent  resulted  in  the
          overcharge finding.  If all computations had been correct,  there
          would have been no overcharge found.

          Although afforded the opportunity to do so, the  tenant  did  not
          reply to the petition.

          BK 110245 RO

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

          As for the contention that the Administrator  used  an  incorrect
          rent figure, the Commissioner notes that where  the  actual  rent
          charged is less than the rent that could have been  charged,  the
          lawful stabilization rent is limited to the actual rent  charged.
          Accordingly, the Commissioner finds that the actual rent  charged
          was  correctly  used  as  the  base  date  rent   in   the   rent
          computations.  However, the rent calculations chart  contains  an
          error in the computation of  the  allowable  MCI  increase  which
          should be $8.44.  Accordingly, the Commissioner has computed  the
          lawful stabilization rent using the corrected  figure  $8.44  for
          the  MCI  increase  and  finds  the  lawful  stabilization   rent
          effective June  1,  1983  should  be  $410.26,  resulting  in  an
          overcharge of $1.64 per month for 25 months  or  $41.00  for  the
          period June 1, 1983 through June 30, 1985.  The rent  calculation
          chart is further revised as follows:

          Lease    Term       Actual Rent    Explanation    Lawful        Over-
          From   -  To        Charged                       Stab.Rent     charge

          6/1/83    6/30/85   $411.90                       $410.26       $1.64

          7/1/85    6/30/80   $436.61        Guideline #16   
                                             $410.26 + 6% for
                                             1 year renewal  434.88        1.73

          7/1/86    6/30/88   $464.99        Guideline # 17  463.15        1.84
                                             $434.88 + 6.5% for
                                             2 year renewal

                                             6/1/83 - 6/30/85
                                             $1.64 X 25 months            $41.00

                                             7/1/85 - 6/30/86
                                             $1.73 X 12 months            $20.76
                                             7/1/86 - 11/30/87             
                                             $1.84 X 17 months            $31.28

                                             Accrued Interest
                                             4/1/84 - 11/30/87            $ 4.16

                                             Excess Security              $ 1.84
                                             Total                        $99.04

          resulting in a total overcharge of $99.04,  inclusive  of  excess
          security and interest on the overcharge  occurring  on  or  after
          April 1, 1984.  The owner is ordered to refund a total of  $99.04
          or the tenant may offset the rent by an amount not in  excess  of
          twenty percent of  the  overcharge  per  month  until  the  total
          overcharge has been recovered.

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

          BK 110245 RO

          ORDERED, that this petition be, and the same hereby  is,  granted
          in part, and the Rent Administrator's  order  be,  and  the  same
          hereby is, modified in accordance with this Order and Opinion.


                                                  JOSEPH A. D'AGOSTA
                                                  Acting Deputy Commissioner

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