Docket No. BG420199RT
                                    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. BG420199RT 
            

                                                  DISTRICT RENT
          Robert E. Sacks,                        ADMINISTRATOR'S DOCKET
                                                  NO. AI520526R 
           
                                   PETITIONER
          ------------------------------------X




          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN 
          PART



              On July 16, 1987, the above-named tenant filed a petition for 
          administrative review of an order issued on June 24, 1987 by a Rent 
          Administrator concerning the housing accommodation known as 
          Apartment 5-V, 4861 Broadway, New York, 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 review.

              This proceeding was commenced by the filing of a rent 
          overcharge complaint by the subject tenant, dated September 14, 
          1986.

              To the complaint the tenant attached, among other things, two 
          rent bills which were dated, December 1, 1984 and December 1, 1985, 
          respectively, and they both list the subject tenant's base rent as 
          $391.23 per month.

              The subject tenant took occupancy in June, 1958 at a monthly 
          rent of $151.62.

              In the order under review herein, the Administrator determined, 
          among other things, that the subject apartment's maximum rent was 
          as follows:













          Docket No. BG420199RT

                    Effective Date                     Maximum Rent

                    January 1, 1984                    $420.58
                    January 1, 1985                    $451.60
                    January 1, 1986                    $485.47
                    January 1, 1984                    $503.43

              The tenant's petition alleges, among other things, that the 
          maximum rants stated in the Administrator's order are contradictory 
          to past rent agency's orders; that the "maximum collectible rents 
          stated for the periods since 1985 are not based on any rent control 
          order served on the tenant, and that the maximum rent for 1985 is 
          in excess of 7 1/2%  of the rent collected in 1984.

              On January 28, 1988 the subject landlord filed an answer to the 
          tenant's petition which asserts, among other things, that the 
          subject tenant is not being overcharged; that all of the tenants in 
          the subject building were "timely served with N-26 Notices," and 
          that the landlord's only error was in failing to bill tenants for 
          the increase in rent.

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

              The Commissioner notes that the Administrator's order under 
          review herein inadvertently listed two different maximum rents for 
          January 1, 1984.

              The record reflects that the subject apartment's maximum rent, 
          effective January 1, 1984, is $420.58 per month.

              The commissioner notes that the rent agency's "Interim Order of 
          Eligibility" for the subject building's 1986-1987 MBR, under Docket 
          No. 7MI01379M, stated, among other things, the following:

               No increase in rent pursuant to this order shall be 
               collected from a tenant of a rent controlled housing 
               accommodation in the subject building until such tenant 
               has received from the landlord a true copy of this 
               Interim Order, and a completed Notice form RN-26S(2/86) 
               or RN-26(2/86).  The landlord's failure to serve this 
               order and appropriate Notice to the tenant within 60 days 
               of the issue date or the effective date of this order, 
               whichever is later, causes this increase to be 
               collectible  prospectively only.

              The above-mentioned order also stated that:  "The landlord's 
          failure to comply with all service and filing requirements... may 
          result in its revocation."

              The record reflects that the 1986 "Master Building Rent 
          Schedule," dated October 10, 1986, and the 1987 "Master Building 






          Docket No. BG420199RT

          Rent schedule," dated December 19, 1986, which were submitted to 
          the rent agency by the subject landlord, did not list the subject 
          tenant.

              As to the subject landlord's assertion that all of the subject 
          tenants were served with "N-26 Notices," the Commissioner finds 
          that that assertion is belied by the fact that the subject tenant's 
          name was not included in the 1986 and 1987 "Master Building Rent 
          Schedule."

              Accordingly, the Commissioner finds that the subject tenant was 
          not served with copies of the required orders and notices that were 
          specified in the aforementioned "Interim Order of Eligibility," for 
          the subject building's 1986-1987 MBR.

              The Commissioner further finds that, as to the subject tenant 
          only, the 1986-1987 MBR order of eligibility, issued under Docket 
          No. 7M01379M(7MI01379M), is revoked, as the subject landlord has 
          not complied with all of the terms and conditions of the 
          aforementioned 1986-1987 MBR order of eligibility.

              Accordingly, the Commissioner finds that the Administrator's 
          order under review herein should be modified as follow:

                    Effective Date                Maximum Rent

                    January 1, 1984               $420.58 per month
                    January 1, 1985               $451.60 per month
                    January 1, 1986               $451.60 per month
                    January 1, 1987               $451.60 per month

              The Commissioner notes that the above-noted maximum rents do 
          not include any adjustments in the rents (increases or decreases), 
          or any fuel cost adjustments that the subject landlord may be 
          entitled to collect.

              The Commissioner points out that maximum rents are the amount 
          which may lawfully be charged and collected from rent-controlled 
          tenants.  Maximum rents, generally speaking, are permitted to be 
          increased by seven and one-half percent per year if the landlord 
          has received  an Order of Eligibility for Maximum Base Rents 
          effective during the pertinent calendar year, so long as the 
          maximum rents do not thereby exceed the Maximum Base Rents.

              The Commissioner further points out that: "Maximum rents may be 
          increased or decreased only by order of the Administrator," 
          pursuant to Section 2201.1 of the City Rent and Eviction 
          Regulations.

              As the subject landlord has received an order of eligibility 
          for the 1984-1985 MBR, the Commissioner finds that absent any 
          orders to the contrary the subject landlord is entitled to charge 












          Docket No. BG420199RT

          and collect from the subject tennat the maximum rents specified in 
          this order and opinion.

              The Commissioner finds that as a result of this order and 
          opinion the subject landlord should refund to the subject tenant 
          all rents collected in excess of the maximum rent within thirty 
          days from the date this order shall become final.

              THEREFORE, in accordance with the City Rent and 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 1986-1987 order of eligibility, 
          issued under Docket No. 7M01379M(7MI01379M), is revoked as  to the 
          subject tenant only, and it is

              FURTHER ORDERED, that the maximum rent of the subject 
          apartment, effective January 1, 1987, is $451.60 per month.

          Note:  the tenants may bring an action against the landlord in any 
          court of competent jurisdiction, pursuant to Section 2206.8(a)(2) 
          of the Rent and Eviction Regulations, within one year after the 
          landlord fails to pay any refund which is owed to the tenants.  The 
          one year time period is to be calculated from when the order 
          becomes final.  If there is no Article 78 petition of this order, 
          then the time period is one year after this order becomes final.

          ISSUED:



                                                                            
                                             Joseph A. D'Agosta
                                             Acting Deputy Commissioner  
    

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