Docket Number: BI-210227-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

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        IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
        APPEAL  OF                               DOCKET  NO.:  BI  210227-RO
                                            : 
             IBSER POINVIL,                    DRO DOCKET NO.: 028825       
                                               Other Party:
                              PETITIONER    :  Elijah Seabrook, Tenant
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           ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                        AND MODIFYING ADMINISTRATOR'S ORDER

        On September 15, 1986,  the  above-named  Petitioner-owner  filed  a
        Petition for Administrative Review against an order issued on August 
        12, 1987, by the District Rent Administrator,  10  Columbus  Circle,
        New York, New York concerning the housing accommodations located  at
        1014 Park Place,  Brooklyn,  New  York,  Apartment  2A  wherein  the
        District Rent Administrator responded to certain  issues  raised  in
        the tenant's objection to the initial registration statement, as  it
        pertained  to  individual  apartment  services;  and   wherein   the
        Administrator terminated the tenant's application.  

        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 by the administrative appeal.

        On September 6, 1984, the tenant commenced the  original  proceeding
        by filing with  the  Division  a  tenant's  objection  form  to  the
        services registration statement filed  by  the  owner.   The  tenant
        alleged that he had  not  received  any  interest  on  his  security
        deposit and would like to receive the same.  The tenant also alleged 
        that he owned his own refrigerator.
         
        In answer to the  tenant's  objections,  the  owner,  in  substance,
        asserted the following:  1) The tenant has rarely paid his  rent  by
        the 6th of the month, whereupon it is late, so the owner has drawn 
        the rent due out of the tenant's security deposit  and  replaced  it
        when  the  tenant  eventually  paid  the  rent;  2)   the   tenant's
        security deposit was below the amount of one month's  rent;  and  3)
        the refrigerator in the apartment was provided by the prior owner
        and the owner was not aware of any refrigerator that belonged to the 
        tenant in the apartment.      

        On August 12, 1987, the District Rent Administrator issued an  order
        in which he terminated  the  proceeding  below,  stating  that  "The
        owner replied [to the objection] that because the  tenant  had  been
        constantly late in paying his rent, the owner had been subtracting 
        late charges from tenant's security deposit."

        The Administrator advised the parties that the security deposit  had
        to be deposited in an interest bearing account  and  not  commingled
        with any other monies.  The Administrator further  stated  that  the
        interest on the security deposit must be paid to the tenant annually 







        Docket Number: BI-210227-RO
        if the tenant requests it and that if the owner fails to do so,  the
        tenant may contact the New York  State  Attorney  General,  who  has
        jurisdiction  over  security  deposits.   The  Administrator,  also,
        directed the tenant to submit a copy of the receipt for the purchase 
        of his own refrigerator to the owner.  The Administrator advised the 
        parties that the question of the ownership of the  refrigerator  had
        to be decided by a Court of  competent  Jurisdiction  and  that  the
        owner remained responsible  for  providing  a  refrigerator  at  the
        apartment if the tenant vacated.

        In the Petition for Administrative Review, the owner asked that  the
        order below be modified because the owner had never alleged that  it
        deducted late charges from the tenant's security deposit.

        The tenant filed an answer to the Petition which  was  not  directly
        responsive to the issues raised in the Petition.

        The Commissioner is of the  opinion  that  the  Petition  should  be
        granted and that the Administrator's order  should  be  modified  by
        deleting therefrom the following language "The  owner  replied  that
        because tenant had been constantly late  in  paying  his  rent,  the
        owner had been  subtracting  late  charges  from  tenant's  security
        deposit."  The Commissioner finds that there  is  no  place  in  the
        record below wherein the owner made the allegation reported  by  the
        Administrator in the foregoing sentence as to the collection of late 
        charges.

        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 as 
        provided hereinabove.

        ISSUED:




                                                                      
                                        ELLIOT SANDER
                                        Deputy Commissioner