BG 610241-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. BG610241RO

                                          :  DISTRICT RENT OFFICE
           River Park Associates,            DOCKET NO. TC63374G
                                            
                                             TENANT: Edwin Stolze      

                            PETITIONER    : 
      ------------------------------------X                             


          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


      On July 20, 1987 the above-named petitioner-owner filed a Petition for 
      Administrative Review against an order issued on June 15, 1987, by a 
      Rent Administrator concerning the housing accommodations known as       
      2550 Independence Avenue, Bronx, New York, Apartment No. 6C - garage 
      space 30 outdoor, wherein the Rent Administrator determined that the 
      owner had overcharged the tenant on the garage rental.
           
      The Commissioner notes that this proceeding was filed prior to April 1, 
      1984.  Sections 2526.1 (a) (4)  and 2521.1 (d) of the Rent Stabilization 
      Code (effective May 1, 1987) governing rent overcharge and fair market 
      rent proceedings provide that determination of these matters be based 
      upon the law or code provisions in effect on March 31, 1984.  Therefore, 
      unless otherwise indicated, reference to Sections of the Rent 
      Stabilization Code (Code) contained herein are to the Code in effect on 
      April 30, 1987.

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

      The applicable sections of the Law are Section 26-516 of the Rent 
      Stabilization Law and Section 2526.1(a) of the current Rent 
      Stabilization Code.

      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.  

      This proceeding was originally commenced by the filing on June 22, 1982 
      of a rent overcharge complaint by the tenant.

      The tenant had separate lease agreements for his apartment and a garage 
      space, and his complaint alleged overcharges for the garage space only.  
      The tenant initially rented the space on November 1, 1970 for a one year 
      lease term at $20.00 per month.







          BG 610241-RO


      In response the owner submitted a lease history and admitted a "small" 
      overcharge, which it calculated through the lease term ending on 
      September 30, 1979.

      In Order No. TC 63374-G, issued on June 15, 1987, the Rent Administrator 
      determined overcharges totalling $382.82, including interest, for the 
      period through September 30, 1985.

      In its petition, the owner argues that the Administrator miscalculated 
      the increases under Guidelines #4 and #5 by deeming incorrect lease 
      terms for the fractional periods covered by those guidelines.  
      Additionally, the owner contends that it was improper to calculate any 
      overcharges or interest after May 9, 1984, which is the date the 
      building was converted to cooperative ownership.

      The tenant's answer did not address the issues raised in the petition.

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

      Petitioner correctly cites the provisions on fractional terms in 
      Guidelines Orders #4 and #5 as authorizing an increase equivalent to the 
      next highest year's increase for renewal lease terms that are 
      fractionally in excess of one or two year's length.  Specifically, the 
      14 month deemed lease term commencing on November 1, 1972 and 
      terminating on December 31, 1973 was eligible for a two year guidelines 
      increase (8 1/2%) instead of a one year increase (6 1/2%); similarly, 
      the 26 month lease term commencing on January 1, 1974 and terminating on 
      February 28, 1976 qualified for the three year guidelines increase (10 
      1/2%) instead of a two year increase (8 1/2%).

      The Commissioner affirms the finding of a two year deemed lease 
      commencing on October 1, 1982, since the tenancy was terminated after 19 
      months when the tenant purchased the apartment.  Petitioner is correct, 
      however, that overcharge calculation should cease as of the date of 
      purchase.

      The lawful stabilized rent is recalculated on the attached rent 
      calculation chart.  The total overcharges are reduced to $212.26, for 
      the period ending on May 9, 1984.

      This Order may, upon expiration of the period for seeking review of this 
      Order and Opinion pursuant to Article Seventy-eight of the Civil 
      Practice Law and Rules, be filed and enforced as a judgment.  Upon such 
      filing, the County Clerk may add to the overcharge, interest at the rate 
      payable on a judgment pursuant to section 5004 of the Civil Practice Law 
      and Rules from the issuance date of the Rent Administrator's Order to 
      the issuance date of the Commissioner's Order.

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




      ORDERED, that this petition be and the same hereby is granted; and that 
      the Administrator's order be and the same hereby is, modified in 
      accordance with this order and opinion.


          BG 610241-RO


      ISSUED:


                                                                    
                                      JOSEPH A. D'AGOSTA
                                      Deputy Commissioner