Docket No. BG 420241-RT
                                    STATE OF NEW YORK 
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK  11433

          APPEAL OF                               DOCKET NO. BG 420241-RT 

                                                  DISTRICT RENT
          MIRIAM BARRET                           ADMINISTRATOR'S DOCKET
                                                  NO. AH 520196-R 


              On July 2, 1987, the above-named tenant filed a petition for 
          administrative review of an order issued on June 24, 1987 by the 
          Rent Administrator concerning housing accommodations known as 
          Apartment 51, 108 Ellwood Street, 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 in the petition for administrative review.

              This proceeding was commenced on August 11, 1986 by the filing 
          of a tenant's overcharge complaint in which the tenant alleged that 
          the owner is collecting $235.00 per month in rent, and that the 
          complainant's apartment is subject to rent control.

              The complainant commenced occupancy in the subject apartment on 
          January 1, 1971, at a monthly rent of $95.97.

              On September 4, 1986, the subject owner filed its response, 
          which pointed out that the subject apartment is rent stabilized.

              On April 13, 1987, the subject owner submitted to the rent 
          agency a signed statement from the subject building's 
          superintendent that stated that he personally served the 1984 
          apartment registration on the subject tenant.

              To the superintendent's statement the owner attached the 
          subject apartment's 1984 apartment registration  statement which 
          lists the April 1, 1984 rent as $235.00 per month.

              The rent agency's record reflects that the Department of 
          Housing, Preservation and Development of The City of New York (HPD) 
          issued an order on April 28, 1982, under Docket No. 2ACS 2945-67, 
          which stated that:

          Docket No. BG 420241-RT

                   Article 15 of the Private Housing Finance Law 
               provides that the Agency may grant a rehabilitation loan, 
               in participation with a private lending institution, and 
               that the Agency shall after the completion of the 
               rehabilitation of a multiple dwelling, establish initial 
               rents for all rental units in the multiple dwelling 
               whether stabilized, controlled or not currently subject 
               to regulation.  Pursuant to Section 804 of the Private 
               Housing Finance Law, after the establishment of rents, 
               the owner shall offer tenants in occupancy a new two year 
               lease at such rent.  A tenant may sign such a lease or 
               request a one year lease if he or she wishes to remain in 
               occupancy; in either case, the owner may demand the new 
               rent established herein from the effective date of this 
               Order and Report.  Subsequent rent increases and lease 
               renewals are subject to the laws, rules and regulations 
               of the rent stabilization system.

              The above-mentioned order determined that the subject apartment 
          "was rehabilitated pursuant to Article 15 of the Private  Housing 
          Finance Law," and established a new initial rent for the subject 
          apartment of $235.00 per month, effective May 1, 1982, pursuant to 
          the applicable section of the Private Housing Finance Law.  The 
          order further stated that, "by operation of law, units heretofore 
          subject to the rent control laws are no longer controlled and are 
          hereby stabilized on such effective date."

              In the order under review herein, the Administrator noted that 
          pursuant to Article 15 of the Private Housing Finance Law the 
          subject apartment was decontrolled, and that the order issued by 
          HPD established the subject apartment's initial regulated rent at 
          $235.00 per month, effective on May 1, 1982.  The Administrator's 
          order also determined that the owner served the apartment 
          registration form on the subject tenant; that, "The rent charged 
          and collected by the owner at time of the tenant's complaint is the 
          same amount set forth as the Initial Legal Registered Rent"; that 
          the subject tenant did not file a timely objection to the initial 
          rent, and therefore the April 1, 1984 registered rent of $235.00 
          per month is the initial legal regulated rent for the subject 

              The tenant's petition asserts, among other things, that an 
          earlier order by the rent agency issued on February 3, 1987, under 
          Docket No. 40273, determined that the complainant was a rent- 
          controlled tenant and had filed a timely objection to the apartment 
          registration.  The subject tenant also asserts that there has been 
          a diminution of services in the subject apartment and building.
              To the petition the subject tenant attaches a copy of the 
          aforementioned order, under Docket No. 40273, which determined that 
          the subject apartment is rent controlled.

          Docket No. BG 420241-RT

              After careful consideration, the Commissioner is of the opinion 
          that this proceeding should be terminated.

              The Commissioner notes that by a subsequent order issued on 
          April 7, 1989, under Docket No. DC 510068-RP, the Administrator 
          revoked its earlier order issued on February 3, 1987, under Docket 
          No. 40273.

              The rent agency's record reflects that the order issued by HPD 
          was not revoked.  Pursuant to HPD's order, the Commissioner finds 
          that the subject apartment as of May 1, 1982 became rent 
          stabilized, and that the subject apartment is presently under the 
          jurisdiction of the Rent Stabilization Law and Code.

              As the order issued by HPD established the subject apartment's 
          initial legal regulated rent at $235.00 per month, and that the 
          tenant admits that $235.00 per month is the amount that the subject 
          owner was collecting at the time of the commencement of the 
          overcharge complaint, the Commissioner finds that the 
          Administrator's order should not be disturbed, and that the 
          aforementioned HPD order is binding on the parties to this 

              The Commissioner notes that this order is being issued without 
          prejudice to the tenant's right to file a complaint for a reduction 
          of rent due to a diminution of services, if it is warranted, under 
          the provisions of the Rent Stabilization Law and Code.  The 
          Commissioner further notes that this order does not prejudice the 
          tenant's right to file a future overcharge complaint, if it is 
          warranted, under the provisions of the Rent Stabilization Law and 

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

              ORDERED, that this petition be, and the same hereby is, denied, 
          and that the Administrator's order be, and the same hereby is, 


                                             Joseph A. D'Agosta
                                             Acting Deputy Commissioner


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