BI410109RO

                                  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. BI410109RO
                                              :  DRO DOCKET NO.L3113393R
               SOLIL MANAGEMENT CORP.            TENANT: BETH ISRAEL         
                                                         MEDICAL CENTER
                                PETITIONER    : 
          ------------------------------------X                             
            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


               On September 24, 1987, the above-named petitioner-owner filed 
          a Petition for Administrative Review against an order issued on 
          August 20, 1987, by the Rent Administrator,  92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 145 East 16th Street, New York,  New York, Apartment No. 
          17J, 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 42A 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 originally commenced by the filing in 
          March, 1984 of a rent overcharge complaint by the tenant in which 
          the tenant stated that it first rented the subject apartment 
          pursuant to a one year lease commencing July 1, 1981 at a rental of 
          $697.34 per month.

               In response to the tenant's complaint, the owner submitted a 
          rental history from November 1, 1967 but did not submit a lease for 
          the period commencing November 1, 1978.  The owner stated that the 
          lease commencing November 1, 1978 was a three year renewal lease 
          with a rent of $403.39 per month.










          BI410109RO




               In Order Number CDR 31,161, the Rent Administrator determined 
          that due to the owner's failure to submit a complete rental history, 
          the owner had collected a rent overcharge of $23,510.08 including 
          interest on that portion of the overcharge occurring on and after 
          April 1, 1984.

               In this petition, the owner contends in substance that it did 
          not default as witnessed by an "Assurance of Discontinuance" which 
          it entered into with the Attorney General and in fact refunded 
          $12,391.92 plus interest for a total of $15,643.44 to the tenant 
          herein Beth Israel Medical Center.  In support of such contention, 
          the owner submitted a copy of the "Assurance of Discontinuance" and 
          a copy of the check dated August 28, 1987.

               The tenant did not file an answer to the owner's petition.

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

               Section 42A of the former Rent Stabilization Code requires that 
          an owner retain complete records for each stabilized apartment in 
          effect from June 30, 1974 to date and produce them to the DHCR upon 
          demand.  If the apartment was decontrolled from the Rent Control Law 
          after June 30, 1974, the owner must provide satisfactory documentary 
          evidence of the apartment's date of decontrol and submit a rental 
          history from that date.

               In the instant case, the owner did provide rental history from 
          the base date as mandated by Section 42A.  Although the owner did 
          not provide a copy of one renewal lease commencing November 1, 1978, 
          the amount of rent listed by the owner for this period exactly 
          coincides with the three year guideline increase of 8 1/2 percent 
          for a renewal lease pursuant to Guideline 10 that the owner was 
          entitled to take.  In view of the foregoing, the Commissioner finds 
          it appropriate to deem a lease for this period and consider the 
          owner to have provided a full rental history.  An examination of 
          such rental history discloses that the owner did in fact overcharge 
          the tenant by a slightly lesser amount than determined by the 
          calculations made during the course of the "Assurance of 
          Discontinuance" proceeding.  Accordingly, the Commissioner accepts 
          such calculations and finds that the owner has properly refunded 
          $15,643.44 to the tenant herein and that the lawful stabilization 
          rent for the subject apartment effective July 1, 1984 is $578.67 - 
          the amount listed in the calculations of the "Assurance of 
          Discontinuance" proceeding.  

               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 






          BI410109RO

          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.

                A copy of this order is being sent to the tenant now in 
          occupancy since the tenant herein has vacated the subject apartment.

               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.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




                     




































    

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