BH210173RO

                                  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

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          IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
          APPEAL OF                              DOCKET NO. BH210173RO
                                              :  DRO DOCKET NO.77269G
               TRUMP MANAGEMENT, INC.            TENANT: S. & P. SPIEGEL

                                PETITIONER    : 
          ------------------------------------X                             
            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


               On August 2, 1987, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on July 
          13, 1987, by the Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          2650 Ocean Parkway, Brooklyn , New York, Apartment No. 11M, wherein 
          the Rent Administrator determined that the owner had overcharged the 
          tenant.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2520.6(r)(4)(xi) of the Rent Stabilization 
          Code.

               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.  

               This proceeding was originally commenced by the tenants' filing 
          of a rent overcharge complaint in October, 1983, in which they 
          stated that they first moved to the subject apartment February 1, 
          1979 at a rental of $481.17 per month.  Along with their complaint, 
          the tenants submitted a copy of their initial lease in which it was 
          stated that the rental includes "one unattended BH garage" and that 
          the tenants had deposited $5.00 for keys.

               In answer to the tenants' complaint, the owner submitted a 
          complete rental history as required including copies of prior 
          leases.  Said prior leases did not include a garage space as part of 
          the rent.

               In Order Number CDR 30,855, the Rent Administrator determined 
          that a rent overcharge of $2,192.36 had occurred and directed the 
          owner to refund such amount to the tenants and to also return the 
          $5.00 key deposit money.  No allowance was made for the garage space 
          in the calculation of the rent overcharge.

               In this petition, the owner alleges in substance that there was 









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          no rent overcharge in that the Rent Administrator failed to credit 
          the owner for a parking space which was included in the tenants' 
          initial lease, but not included in the leases of prior tenants.

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

               Section 2520.6(r)(4)(xi) of the Rent Stabilization Code 
          provides in pertinent part that for ancillary services subject to 
          the provisions of the Rent Stabilization Code where there is a 
          separate charge for such service, any increase for such service 
          other than the charge provided in the initial agreement with a 
          tenant to lease, rent or pay for such service, shall conform to the 
          applicable rent guidelines rate.

               In the instant case, the evidence of record discloses that 
          prior to occupancy by the tenant herein, there was no provision of  
          a garage space to prior tenants of the subject apartment.  
          Accordingly, the owner was entitled to an initial charge for the 
          garage space not subject to the rent guidelines but subject to the 
          guidelines rate for renewal leases.  Therefore, the overcharge of 
          $32.58 per month found by the Rent Administrator in the tenants' 
          initial lease is not an overcharge but an allowance for the garage 
          space.  It is noted that in the next lease, the rent including the 
          garage space was increased by the appropriate guideline amount for 
          a renewal lease so that no overcharge occurred.  Therefore the Rent 
          Administrator's order finding a rent overcharge must be revoked 
          although the owner is still responsible for refunding the $5.00 key 
          deposit.

               If the owner has already complied with the Rent Administrator's 
          order and there are arrears due to the owner as a result of the 
          instant determination, the tenant is permitted to pay off the 
          arrears in twelve equal monthly installments.  Should the tenant 
          vacate after issuance of this order or already have vacated, said 
          arrears shall be payable immediately.

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

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, granted, and, that the order of the Rent 
          Administrator be, and the same hereby is, revoked except that the 
          owner must refund the $5.00 key deposit.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner



                     


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