STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO. BI110061RO
                                              :  DRO DOCKET NO.Q3119665R
               GOLDMORE REALTY CO.               TENANT: IRWIN & BELLA GUZOV

                                PETITIONER    : 

               On September 1, 1987, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on August 
          13, 1987, by the Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          65-50 Wetherole Street, Queens, New York, Apartment No. 3U, wherein 
          the Rent Administrator determined that the owner had overcharged the 

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 of the Rent Stabilization Code.

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

               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 in March, 1984 by the tenants' 
          filing of a rent overcharge complaint in which the tenants stated 
          that they first moved to the subject apartment on July 1, 1969 at a 
          rental of $295.00 per month.  In an answer to the complaint filed in 
          November 1984, the owner submitted a complete rental history through 
          that date.  Subsequently, the tenants advised that they signed a two 
          year lease renewal effective July 1, 1986 at a rental of $591.34 per 
          month.  The owner was not afforded an opportunity to submit an 
          updated rental history.

               In Order Number CDR 31,066, the Rent Administrator determined 
          that an overcharge of $849.64 had occurred during the period from 
          July 1, 1972 through June 30, 1986 including interest on the period 
          on and after April 1, 1984 and directed the owner to refund such 
          overcharge to the tenants.  However, the Rent Administrator found no 
          overcharge for the period commencing July 1, 1986 but determined 
          that the lawful stabilization rent commencing July 1, 1986 could 
          have been $596.28 but was limited to the $591.34 actually charged 
          the tenants.


               In this petition, the owner alleges in substance that the rent 
          in the lease commencing July 1, 1986 was $604.65 rather than the 
          amount of $591.34 as listed in the Rent Administrator's order so 
          that the lawful stabilization rent for this period should have been 
          listed as the $596.28 the owner could have charged (since the owner 
          was actually charging more and not less as the Rent Administrator 

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

               An examination of the rent registration records for the subject 
          apartment discloses that the owner is correct in its contention that 
          it charged the tenants herein a rental of $604.65 for the two year 
          lease commencing July 1, 1986.  Further, the lawful stabilization 
          rent for the period commencing July 1, 1986 was $596.28 (6.5% over 
          the prior rent of $559.89 for a two year renewal lease pursuant to 
          Guideline 17).  Since the owner was in fact charging more than 
          $596.28, the amount of $596.28 should have been listed as the lawful 
          stabilization rent rather than $591.34.  However there is an 
          additional overcharge during the period from July 1, 1986 through 
          August 31, 1977 (last date of month in which Rent Administrator's 
          order was issued) of $123.77 (overcharge of $8.37 per month - 
          difference between collected rent of $604.65 and lawful 
          stabilization rent of $596.28 - plus interest).  The total 
          overcharge is as follows: $849.64 as previously determined by Rent 
          Administrator plus $123.77 plus excess security of $8.37 for a total 
          of $981.78.  The Rent Administrator's order is hereby amended to 
          reflect the above.

               It is noted that the owner was granted a rent increase in 
          August 1987 for a major capital improvement.  Such rent increase is 
          not reflected in this order but would not change the amount of the 
          overcharge herein determined.

               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 
          including the aforementioned major capital improvement rent 

               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 in accordance 


          with this order and opinion.  The lawful stabilization rent 
          effective July 1, 1986 is $596.28 and the total amount of the 
          overcharge through August 31, 1977 is $981.78.


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner



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