BL 210095 RO
                                  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.: BL 210095 RO

                        DAVID KATZ,
                                                  DRO DOCKET NO.: K-3104169-R/
                                                                  31,689
                                                  TENANT:  ROGER KLINGER
                                  PETITIONER
          ----------------------------------X                                   


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

          On November 30, 1987, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          October 27, 1987, by the Rent Administrator, 10 Columbus  Circle,
          New York, New York concerning the housing accommodations known as 
          645 East 26th Street, Apartment 2F, Brooklyn, New  York,  wherein
          the Administrator determined that the owner had  overcharged  the
          tenant.

          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.

          This proceeding was originally commenced on March 30, 1984 by the 
          filing of a rent overcharge complaint by the tenant.

          In answer to the tenant's complaint, the owner set forth  a  rent
          history listing the base  rent  date  as  November  1,  1980  and
          stated in substance that the tenant  was being charged an  amount
          below the  allowable  rent  as  computed  by  updating  1974-1975
          Maximum Base Rent (MBR)  rent  increases  to  1980,  the  alleged
          decontrol date, and increasing the figure obtained by  applicable
          guidelines increases.  The owner, who said it had  purchased  the
          building in December 1984, submitted an incomplete set of leases, 
          a copy of the 1974-1975 MBR increases (N-26 forms),  computerized
          rent bills for the former tenant, and a then-current rent roll.

          In response, on June 8,  1987,  to  a  Final  Notice  of  Pending
          Default, the  owner  asserted  that  it  was  attempting  to  get
          additional information, which was not available from  the  former
          owner, and from the DHCR.

          In the order  issued  on  October  27,  1987,  the  Administrator
          determined that due to the owner's failure to submit  a  complete
          rental history, the tenant had been overcharged in the amount  of
          $5,676.91 including interest on the overcharge occurring  on  and






          BL 210095 RO
          after April 1,  1984  and  directed  the  owner  to  refund  such
          overcharge to the tenant as well as to reduce the rent.

          In this petition, the owner contends that it had made good  faith
          efforts to obtain substantiating information  by  requesting  MBR
          and other Rent Control information from the DHCR, which the owner 
          asserts would have established the base rent date as was  alleged
          in the answer.  With its appeal the owner submits a  letter  from
          the immediately preceding tenant who indicates that  he  was  the
          first rent stabilized tenant when he took occupancy  in  November
          1980 at a rental of $299.00.  The owner contends that  since  the
          DHCR failed to respond to its public information request and  did
          not inspect its own records before issuing a  determination,  the
          Administrator was not justified in determining that the owner was 
          in default and in using default procedures to determine the rent.

          In response to the petition, the tenant contends that the  rental
          history provided by the owner is incorrect.   The  tenant  argues
          that the  initial  lease  should  not  have  included  a  vacancy
          increase because the prior tenant vacated before  the  expiration
          date of his lease.

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

          Rent Control records demonstrate that the subject  apartment  was
          occupied by a statutory rent-controlled tenant up until at  least
          the beginning of 1980 and that the MBR in 1978 had been  $277.11.
          Further the record including the statement of  the  prior  tenant
          and computerized rent  bills  establish  that  the  prior  tenant
          Frederic Mirer was the first rent stabilized tenant and  paid  an
          initial rent of $299.00 effective November 1,  1980.   Such  rent
          was then increased by 10%  to  $328.90  upon  a  one  year  lease
          renewal effective November 1, 1981 pursuant to Guideline 13.  The 
          rent was then increased to $375.00 upon occupancy by the  current
          tenant effective July 1, 1982 pursuant  to  a  vacancy  allowance
          under Guideline 13.  Subsequent increases were in accordance with 
          applicable guideline allowances.  Accordingly there was  no  rent
          overcharge.  The Commissioner also finds that tenant's contention 
          regarding the vacancy increase to be without  merit,  since  this
          was the tenant's initial lease and more  than  three  months  had
          elapsed since the commencement of the previous lease,  the  owner
          was entitled to a vacancy increase.  Accordingly,  there  was  no
          overcharge.

          If the owner has already complied with the  Rent  Administrator's
          order and there are arrears due to the owner as a result  of  the
          instant determination, the tenant shall be permitted to  pay  off
          the arrears in twenty-four equal  monthly  installments.   Should
          the tenant vacate after the  issuance  of  this  order,  or  have
          already vacated, said arrears shall be payable immediately.

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

          ORDERED, that this petition be, and the same hereby  is,  granted
          and that the Rent Administrator's order be, and the  same  hereby
          is, revoked, and it is found that no rent overcharge occurred.







          BL 210095 RO




          ISSUED:

                                                  ------------------------
                                                  JOSEPH A. D'AGOSTA
                                                  Acting Deputy Commissioner
           
             
                                             
    

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