BJ130270RO

                                  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.BJ130270RO
                                              :  DRO DOCKET NO.Q3121430R
               FRESH MEADOWS ASSOCIATES          TENANT: ILSE E. PREVETI

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


               On October 23, 1987, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          October 8, 1987, by the Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          67-02 C 186th Lane, Queens, New York, Apartment No. 2C wherein the 
          Rent Administrator determined that the owner had overcharged the 
          tenant.

               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 
          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 in March 1984, by the filing of 
          a rent overcharge complaint by the tenant who first moved to the 
          subject apartment in June, 1973.  In response to the tenant's 
          complaint, the owner submitted a complete rental history as 
          required.

               In Order Number CDR 31,536, the Rent Administrator on the basis 
          that the owner incorrectly charged a retroactive fuel surcharge for 
          the months of July through September 1979 and on the basis that the 
          owner was entitled to a hardship increase of only $7.90 per month as 
          of July 1, 1982 rather than the higher amount claimed by the owner, 
          found a total rent overcharge of $339.85 had occurred through 
          September 30, 1987.

               In this petition, the owner contends in substance that no rent 
          overcharge occurred in that it was entitled to charge a retroactive 
          fuel surcharge and that it was entitled to charge $11.96 for the 
          hardship increase rather than $7.90. 

               In answer to the owner's petition, the tenant stated in 
          substance that she looked forward to a favorable resolution of the 









          BJ130270RO



          matter.

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

               An examination of the records in this case discloses that  
          contrary to the statement in the Rent Administrator's order, the 
          owner did not in fact charge a retroactive fuel surcharge increase 
          for the period from July - September 1979 when such increase was not 
          permitted.  Rather, the owner charged the increase for the period 
          from July - September 1980 when it was entitled to such an increase.  
          It is noted that confusion possible arose since the owner in its 
          letter dated September 10, 1987 explaining the rental history 
          mistakenly stated the period as 1979 rather than 1980 but such 
          statement was a typo and it is clear from the context of the letter 
          that 1980 was meant.  Further, the owner is correct in its 
          contention that it was allowed to charge $11.96 rather than $7.90 as 
          the hardship increase in that the hardship increase was granted 
          pursuant to CAB Opinion Number 21,082 issued on June 24, 1982 with 
          an effective date of April 1, 1975.  The hardship increase was to be 
          2.68 percent of the rent in effect on January 1, 1975 - in this case 
          $7.90, but the owner was entitled to have this amount updated by 
          appropriate guideline increases upon renewal leases by the tenant 
          making the hardship increase $11.96 as of July 1, 1982 (first rent 
          payment date after issuance of the order) rather than $7.90 as of 
          July 1, 1982 as determined by the Rent Administrator.  Accordingly, 
          no rent overcharge occurred and the Rent Administrator's order to 
          that effect must be revoked.

               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 shall be permitted to pay off the 
          arrears in twelve equal monthly installments.  Should the tenant 
          vacate after the issuance of this order or have already 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, and it is found 
          that no rent overcharge occurred.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




                     


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