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

          APPEAL OF                              DOCKET NO. BJ410309RO
                                              :  DRO DOCKET NO. L3115151R
               HELMSLEY-SPEAR, INC.              TENANT: CATHY A. NUZZO       

                                PETITIONER    : 

               On Sept. 30, 1987,  the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on       
          Sept. 11, 1987, by the Rent Administrator,  10 Columbus Circle, New 
          York, New York, concerning the housing accommodations known as      
          225 West 23rd Street, New York, New York, Apartment No.4-0 
          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 2526.1 of the current Rent Stabilization Code 
          and Section 20A(4) of the former 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 originally commenced by the filing in 
          March, 1984, of a rent overcharge complaint by the tenant.

               In response to the tenant's complaint, the owner submitted a 
          complete rental history as required.

               In Order Number CDR 31,357, the Rent Administrator determined 
          that the owner had collected a rent overcharge of $615.52
          including interest on that portion of the overcharge occurring on 
          and after April 1, 1984.

               In this petition, the owner contends in substance that applying 
          the former Code Section 20A(4) in the determination of the 
          overcharge and then applying the current Code Section 2526.1 to 
          assess the penalty was not warranted.

               The Commissioner is of the opinion that this petition should be 

               In the instant case, an overcharge was correctly determined 
          pursuant to Section 20A(4) of the former Code since the owner 
          incorrectly charged a rent increase prior to the expiration date of 
          the initial stabilized lease after decontrol of the subject 
          apartment from the rent control law.  An interest penalty pursuant 
          to Section 2526.1 of the current Code was correctly imposed on the 
          overcharges occurring on and after April 1, 1984.  There is no 
          conflict in applying these provisions of both the former and current 
          Rent Stabilization Codes.  Accordingly, the Rent Administrator's 
          order was warranted.

               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 

               This order may, upon the expiration of the period in which the 
          owner may institute a proceeding pursuant to Article 78 of the Civil 
          Practice Law and Rules, be filed and enforced in the same manner as 
          a judgment or not in excess of twenty percent per month thereof may 
          be offset against any rent thereafter due the owner.

               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, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is, affirmed.


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner



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