Adm. Review Docket Number: BJ 230111 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

        ------------------------------------X 
        IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
        APPEAL OF                              DOCKET NO.: BJ 230111-RO 
                                            :  
             MIDCOASTAL  PROPERTIES,  INC.,             DRO   DOCKET   NOS.:
                                                            K-3105886-R  
                              PETITIONER    :               CDR 31548
        ------------------------------------X                           
                                               TENANT:  BARRY SILVERMAN    
                                         
           ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

        On October 20, 1987, the above-named petitioner-prior owner filed  a
        Petition for  Administrative  Review  against  an  order  issued  on
        October 8, 1987 by the  District  Rent  Administrator,  10  Columbus
        Circle, New York, New York concerning housing  accommodations  known
        as Apartment 1B at 3845 Shore Parkway, Brooklyn,  New  York  wherein
        the District  Rent  Administrator  determined  that  the  owner  had
        overcharged the tenant.

        The  issue  in  this   appeal   is   whether   the   District   Rent
        Administrator's order was warranted.

        In this petition, the owner contends in substance that there was  no
        rent overcharge in that  the  District  Rent  Administrator's  order
        incorrectly added in an increase for a Major Capital Improvement.

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

        The rent increase granted on July 19, 1984 in Docket No. OM-3975 was 
        for a 0.84% increase of the September 17, 1983 rent of  $374.46,  or
        $3.15.  This increase was effective as of September  17,  1983,  but
        the Administrator in the case under appeal did not add it  in  until
        the lease commencing August 1,  1984,  thus  ignoring  a  Guidelines
        increase on the $3.15 and finding an overcharge of  $.22  per  month
        beginning in that lease.   When  the  $3.15  increase  is  correctly
        included in the rent of the lease ending July 31, 1984,  the  lawful
        stabilization rent in the lease commencing August 1, 1984 is $404.04 
        per month and in the lease commencing August 1, 1986 is $430.30  per
        month.  Since these are the rents actually charged there has been no 
        overcharge shown, and the Commissioner's order finding an overcharge 
        of $9.37 as of August 31, 1987 must therefore be revoked.

        THEREFORE, in accordance with the Rent Stabilization Law  and  Code,
        it is








        Adm. Review Docket Number: BJ 230111 RO



        ORDERED, that this petition be, and the same hereby is, granted  and
        that the District Rent Administrator's order be, and the same hereby 
        is,  revoked  since  there  was  no  rent  overcharge.   The  lawful
        stabilization rent is $430.30 as of August 31, 1987.

        ISSUED:




                                                                      
                                        ELLIOT SANDER
                                        Deputy Commissioner