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

          APPEAL OF                               DOCKET NO. BG220324RO

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO. AF220197R
            2039 HOMECREST AVENUE, INC.,
                                   PETITIONER     TENANT: Saul Lindenbaum
                                       IN PART

               On July 17, 1987, the above-named landlord filed a petition 
          for administrative review of an order issued on June 18, 1987 by a 
          Rent Administrator concerning the housing accommodation known as 
          Apartment C2, 2039 Homecrest Avenue, Brooklyn, New York.

               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 petition for administrative 

               This proceeding was commenced by the subject tenant filing a 
          rent overcharge complaint, dated June 9, 1986.

               To the complaint the tenant attached a statement which 
          alleged, among other things, that the landlord is demanding excess 
          rent for fuel cost adjustments.

               In the order under review herein, the Administrator noted that 
          the subject apartment's maximum rent effective January 1, 1981 was 
          $122.52 per month; effective January 1, 1986 the maximum rent was 
          $131.71 per month, and effective January 1, 1987 the maximum rent 
          was $141.59 per month.  The Administrator's order also stated that:  
          "The matter concerning the fuel cost adjustment will be resolved 
          under docket KC000046-F."  

               In this petition the landlord asserts, among other things, 
          that the Administrator's order does not take into account an order 
          issued on February 27, 1987, under Docket No. K000376OM, which 
          granted the landlord a major capital improvement (MCI) rent 
          increase of $4.09 per room, per month; that a letter mailed by the 
          rent agency, dated April 14, 1987, stated that the 1985 Fuel Cost 
          Adjustment (FCA) has been denied, and that the landlord should 
          refund any overpayments; that there is a discrepancy between the 

          ADM. REVIEW DOCKET NO. BG220324RO

          above-mentioned letter dated April 14, 1987, and the order under 
          review herein, as the former alleged that the FCA has been denied, 
          and the latter alleged that the FCA will be resolved, and that the 
          landlord requests an administrative review of this matter.

               After careful consideration, the Commissioner is of the 
          opinion that this petition should be granted in part.

               The Commissioner takes note of the fact that the Division of  
          Housing and Community Renewal granted the landlord an MCI rent 
          increase in an order which was issued on February 27, 1987 under 
          Docket No. K000376OM.  The order allowed a rent increase of $4.09 
          per room, per month.  The record reflects that the subject 
          apartment contained three rooms, and therefore the landlord was 
          entitled to a MCI rent increase of $12.27 per month, effective on 
          the first rent payment date after the issuance of the above- 
          mentioned order.

               Accordingly, the subject apartment's maximum rent effective 
          March 1, 1987 is $153.86 per month (January 1, 1987 maximum rent of 
          $141.59 per month + $12.27).  The Commissioner further finds that 
          the Administrator's order is modified to take the aforementioned 
          MCI rent increase into account, and therefore the Administrator's 
          order is to reflect the fact that the subject apartment's maximum 
          rent, effective March 1, 1987, is $153.86 per month.

               The Commissioner notes that in an order issued on April 30, 
          1986, under Docket No. KC000046F, the Administrator directed the 
          landlord to refund to the subject tenant, "any excess increase paid 
          by the tenant as a result of the owners fuel cost adjustment 
          report."  The Commissioner further notes that the subject tenant 
          filed a challenge of the owner's 1986 FCA on May 13, 1986, under 
          Docket No. AE220033F.  The record reflects that the proceeding 
          under Docket No. AE220033F was still pending when the order under 
          review herein was issued.

               Accordingly, the Commissioner further finds that the 
          Administrator's order should be modified to reflect the fact that 
          the tenant's 1986 FCA challenge under Docket No. AE220033F was 
          pending at the time of the issuance of the Administrator's order, 
          and therefore item 8 of the Administrator's order should hereby 
          state as follows:

                    The matter concerning the fuel cost adjustment
                    will be resolved under Docket No. AE220033F.

          ADM. REVIEW DOCKET NO. BG220324RO

               The Commissioner notes that on January 25, 1990 the 
          Administrator issued an order under Docket No. AE220033F which 
          denied the tenant's challenge of the 1986 FCA for being filed 

               The Commissioner finds that the landlord's request for an 
          administrative review of the Administrator's order issued under 
          Docket No. KC000046F is an impermissible collateral attack of a 
          prior administrator's order in this proceeding.

               THEREFORE, in accordance with the City Rehabilitation Law and 
          the Rent and Eviction Regulations, it is

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

               FURTHER ORDERED, that the maximum rent of the subject 
          apartment, effective March 1, 1987, is $153.86 per month.


                                        JOSEPH A. D'AGOSTA
                                        Deputy Commissioner 


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