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. BH410095RO
                                              :  DRO DOCKET NO. L3118042R
               SULZBERGER-ROLFE, INC.            TENANT: ANGELA FARRELL

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


               On August 21, 1987, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on July 
          17, 1987, by the Rent Administrator, 10 Columbus Circle, New York, 
          New York, concerning the housing accommodations known as 114 East 
          84th Street, New York, New York, Apartment No. 6, wherein the Rent 
          Administrator determined that the owner had overcharged the tenant.

                    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 Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 of the Rent Stabilization Code and 
          Section 2 of the former 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 commenced by the tenant's filing of a rent 
          overcharge complaint in March, 1984.  The tenant had been in 
          occupancy of the subject apartment since July, 1971.

               In Order Number CDR 30,901, the Rent Administrator on the basis 
          of the rental history since July, 1971, determined that a rent 
          overcharge of $937.84 had occurred from July 1, 1971 through May 31, 
          1984 when the tenant vacated the subject apartment.

               In this petition, the owner alleges in substance that no rent 
          overcharge occurred because the subject apartment was not subject to 









          BH410095RO


          rent stabilization until July 1, 1974; that the rent on July 1, 1974 
          should be considered the Initial Legal Regulated Rent; and that the 
          Rent Administrator neglected to include the tenant's renewal lease 
          effective June 1, 1982.

               In response to the owner's petition, the tenant stated in 
          substance that she should receive the rent overcharge due her.

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

               Section 2(i)A.(1)(b) of the former Rent Stabilization Code 
          provides in pertinent part that the Initial Legal Regulated Rent for 
          a dwelling unit which was subject to the City Rent Law or the Rent 
          Stabilization Law on June 30, 1971 and was vacated between July 1, 
          1971 and June 30, 1974 and became subject to the Rent Stabilization 
          Law on July 1, 1974 shall be the rent charged and paid on June 30, 
          1974.

               In the instant case therefore pursuant to Section 2, the rent 
          charged and paid on June 30, 1974 is the Initial Legal Regulated 
          Rent, not July 1, 1974 as the owner contends and not July 1, 1971 as 
          determined by the Rent Administrator.  Further, the owner is correct 
          in its contention that it was not credited with a renewal lease 
          increase effective June 1, 1982.  Taking these factors into account, 
          the Commissioner has recalculated the lawful stabilization rents and 
          the amount of the rent overcharge as follows: 

          Date         Lawful Stabilization Rent         Amount of Overcharge 

          6/30/74      $75.00                                      0

          7/1/74       $83.25 (11% over $75.00 pursuant   $1.75 per month x 23
                       to two year renewal lease under    months = $40.25.
                       Guideline 6). Owner charged $85.00.

          6/1/76       $91.16 (9 1/2 % over $83.25                 0
                       pursuant to two year renewal lease 
                       under Guideline 7). Owner charged $90.00
                       and is limited to that amount.

          6/1/78       $95.85 (6 1/2% over $90.00 pursuant         0
                       to one year renewal lease under Guideline
                       9). Owner charged $95.85.

          6/1/79       $102.08 (6 1/2% over $95.85 pursuant to   $2.04 per  
                       two year renewal lease under Guideline    month x 24
                       10). Owner charged $104.12.               months =     
                                                                 $48.96

          6/1/81       $113.31 (11% over $102.08 pursuant to       0
                       one year renewal lease under Guideline
                       12). Owner charged $111.94 and is limited
                       to that amount.






          BH410095RO

          6/1/82       $123.13 (10% over $111.94 pursuant to       0
                       one year renewal lease under Guideline 13).
                       Owner charged $123.13.
                       
          6/1/83       $128.06 (4% over $123.13 pursuant to one    0
                       year renewal lease under Guideline 14).
                       Owner charged $128.06.
                                                    Total overcharge - $89.21

               The owner is directed to reflect the findings and 
          determinations made in this order on all future registration 
          statements, including those for the current year if not already 
          filed, citing this order as the basis for the change.  Registration 
          statements already on file, however, should not be amended to 
          reflect the findings and determinations made in this order.  The 
          owner is further directed to adjust subsequent rents to an amount no 
          greater than that determined by this order plus any lawful 
          increases.

               This order may, upon the expiration of the period in which the 
          owner may institute a proceeding pursuant to Article 78 of the Civil 
          Practice Law and Rules, be filed and enforced in the same manner as 
          a judgment.

               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 in part, and, that the order of the Rent 
          Administrator be, and the same hereby is, modified to show a total 
          rent overcharge of $89.21. 

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




                     





















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