BD110147.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. BD110147RO
                                                   DRO   DOCKET   NO.040979
            Sunnyhill Gardens Associates,    :     
                                                   TENANT: Mary Leone 
                                                   
                               PETITIONER     :
          ------------------------------------X

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


          On April 7, 1987 the above-named petitioner-owner filed a Petition 
          for Administrative Review against an order issued on March 5, 1987 
          by the Rent Administrator, 10 Columbus Circle, New York, New York 
          concerning the housing accommodations known as 39-35 51st Street, 
          Woodside, New York, Apartment No. 6G wherein the Rent Administrator 
          determined that the owner had overcharged the  tenant  $1.83  per
          month in a lease from June 1, 1986 to May 31, 1988.

          The issue herein is whether the Rent  Administrator's  order  was
          warranted.

          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.

          In its petition, the owner contends in substance that Order No. CDR 
          6248 (Docket No. OM-5949), issued on January 29, 1986 and granting 
          an increase for Major Capital Improvements, stated that the 5.26% 
          increase was to be calculated above the September, 1984 rent  (in
          this case stated by the owner to be $284.77), yet the Administrator 
          calculated the increase on the $251.20  rent  resulting  after  a
          November 4, 1982 order in Conciliation and Appeals Board (C.A.B.) 
          Opinion No. 22,992 (Docket No. OI-9098) directing an interim rent 
          reduction of  1.27%  and  $30.00  for  conversion  to  electrical
          exclusion.

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


















          BD110147.RO



          The order in Docket No. OM-5949 granted an increase of 5.26% of the 
          September, 1984 rent.  Because C.A.B. Opinion No. 22,992 had been 
          issued on November 4, 1982, ordering an interim rent reduction of 
          1.27% and $30.00 after conversion to  electrical  exclusion,  the
          Administrator, assuming that the conversion had occurred somewhere 
          around                          the                          time
          of  the   C.A.B.   order,   subtracted   those   out   from   the
          September, 1984 rent on which the 5.26% increase was  calculated,
          resulting in an overcharge of  $1.83  per  month.   However,  the
          conversion was not actually done until June 27, 1985,  more  than
          nine  months  after  September,  1984,  according  to  the  final
          electrical conversion order issued on October 1, 1987  in  Docket
          No.AJ110006-OD, so the interim rent reduction was not yet in effect 
          in September, 1984, and should not have been subtracted out in the 
          calculation of the 5.26% increase.  When this is corrected there is 
          no overcharge through March 31, 1987.  

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

          ORDERED, that this petition be, and the same hereby is,  granted;
          that the Administrator's order be, and the same hereby is, modified 
          in accordance with this order and opinion; and it is  found  that
          there is no  overcharge  through  March  31,  1987.   The  lawful
          stabilization rent is $298.43 per month in the lease from June 1, 
          1986 to May 31, 1988.



          ISSUED:




           
                                                       JOSEPH A. D'AGOSTA
                                                       Deputy Commissioner
    

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