BK 410283 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 410283 RO

                                                  DRO DOCKET NO.: 042008
                                                  EXAMINING UNIT
                                                  TENANT:  DEBORAH SCHORSCH


          On November 27, 1987, the above-named owner filed a Petition  for
          Administrative  Review  against  an  order  issued  by  the  Rent
          Administrator, 10 Columbus Circle, New York, New York  concerning
          the housing accommodations known as 301 West 22 Street, Apartment 
          31, New York, New York  wherein  the  Administrator  granted  the
          tenant's fair market  rent  appeal  and  directed  the  owner  to
          refund excess rent of $9,519.74 inclusive of excess security.

          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.

          On September 24, 1984, the tenant commenced  this  proceeding  by
          filing an objection to the apartment registration, alleging  that
          the initial rent exceeded the apartment's fair market rent.   The
          tenant stated that she had first taken occupancy of  the  subject
          apartment on January 1, 1979 at an initial rent of $400.00.

          A copy of the Fair Market Rent Appeal, as well  as  answer  forms
          and rent forms to be filled out, was sent to the owner along with 
          instructions to submit  copies  of  all  leases  of  the  subject
          apartment from its base date.

          On March 23, 1987, the owner submitted a complete set  of  leases
          for the apartment commencing January 1,  1979.   The  owner  also
          submitted copies of  leases  for  two  other  apartments  in  the
          subject building for the same time period as the tenant's initial 
          lease as comparables.

          On October 20, 1987, the  Administrator  issued  the  order  here
          under review.  Finding that the owner had not submitted necessary 
          data, the Administrator determined the tenant's fair market  rent
          solely on the basis of a special  guidelines  order,  established
          the fair market rent at $322.46, and directed the owner to refund 
          $9,519.74 in excess rent and security.

          BK 410283 RO
          In its appeal, the owner contends:

               1)    the  tenant's  complaint  is  jurisdictionally
                    defective and  should  have  been  rejected  by
                    the  Rent  Administrator  because  the   tenant
                    failed  to  meet  the   pleading   requirements
                    imposed by Code Section 2522.3 (b);

               2)    the  petitioner  was  not  notified   of   the
                    requirements under the new Code and  should  be
                    permitted  to   submit   proper   comparability
                    data; and

               3)     the   Administrator's   failure   to   follow
                    standard  Agency  procedure   and   forward   a
                    summary notice which  would  have  advised  the
                    owner that  Special  Guidelines  would  be  the
                    sole basis of the Fair Market  Rent  prejudiced
                    the owner.   The  owner  seeks  to  revoke  the
                    Administrator's order.

          The tenant contends that:

               1)   she filed a fair  market  rent  appeal  because
                    she   believed    her    initial    rent    was
                    substantially higher  than  rents  for  similar
                    apartments in the same neighborhood;

               2)   the owner had  failed  to  give  her  either  a
                    report  of  statutory  decontrol  or   a   rent
                    history for the subject apartment; and

               3)   it  appears  that  the  rent  for  the  subject
                    apartment  is  considerably  higher  than   the
                    average  rent  for  other  apartments  in   the
                    subject building.

          The Commissioner is of the opinion that this petition  should  be
          granted to the extent of remanding the proceeding.

          With respect to the petitioner's  contention  that  the  tenant's
          complaint was jurisdictionally defective, the Commissioner  notes
          that Code Section 2522.3 imposes a minimum  pleading  requirement
          which is met, as in the instant case, by the allegation that  the
          initial legal registered rent exceeds the fair market rent.

          As regards the alleged lack of notification by  the  Agency,  the
          Commissioner notes that the  owner  should  have  been  given  an
          opportunity to submit updated comparability  data  in  accordance
          with the requirements pursuant  to  Code  Section  2522.3(e).   A
          review of the record reveals that the owner was not  informed  of
          the  changes  in  the  requirements  for  submission  of  updated
          comparability data. Accordingly, the Commissioner finds that  the
          proceeding should be remanded to the  Administrator  for  further
          processing to permit the owner to submit comparability  data  and
          to redetermine the fair market rent, if necessary.

          THEREFORE, in accordance with  the  Rent  Stabilization  Law  and

          BK 410283 RO
          Code, it is

          ORDERED, that this petition be, and the same hereby  is,  granted
          to  the  extent  of  remanding  this  proceeding  to   the   Rent
          Administrator for further  processing  in  accordance  with  this
          Order and Opinion.  The automatic stay of so  much  of  the  Rent
          Administrator's order as directed a refund  is  hereby  continued
          until  a  new  order  is  issued  upon  remand.    However,   the
          Administrator's determination as to the rent is  not  stayed  and
          shall remain in effect, except for any  adjustments  pursuant  to
          lease  renewals   and   other   lawful   increases,   until   the
          Administrator issues a new Order upon remand.

                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner


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