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

          APPEAL OF                               DOCKET NO. BK110260RO

               KALED MANAGEMENT CORP.,            DRO DOCKET NO. ZQ004552R

                                   PETITIONER     TENANT: STEVEN BLOOMFIELD


          On November 30, 1987, the above-named owner filed a Petition  for
          Administrative Review against an order issued on November 2, 1987 
          by the Rent Administrator concerning the  housing  accommodations
          known as 69-40 108th Street, Forest Hills, New York, Apartment No. 
          4J wherein the Rent Administrator determined that the complainant 
          tenant was overcharged in rent.

          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 calculation of 
          the lawful stabilization rents for the subject apartment reflects 
          two voluntary reductions in the complainant tenant's rent  and  a
          credit in the amounts of $195.00 and $138.04 to this tenant's rent.

          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 on October 
          24, 1985 of a rent overcharge complaint by the tenant.

          In answer to the tenant's  complaint,  the  owner  submitted  the
          requisite rental history and stated  that  it  was  reducing  the
          tenant's rent and crediting the tenant with $195.00 and $138.04.

          In Order Number ZQ004552R, the Rent Administrator determined that 
          the complainant tenant was  overcharged  in  rent  in  amount  of
          $522.08, including excess security and interest. 

          In the petition, the  owner  disputes  the  Rent  Administrator's
          calculation.  The petitioner states that, effective December 1, 


          1985, the rent charged the complainant tenant was $700.17  rather
          than $715.17 used in the Administrator's calculations.   Further,
          the petitioner submitted evidence on appeal  in  support  of  its
          assertion in the proceeding before the Rent Administrator that it 
          further reduced this tenant's rent effective May 1, 1987 and that 
          it had compensated this tenant in  the  amounts  of  $195.00  and
          $138.04 for the periods said tenant was overcharged in rent.  The 
          petitioner requests that the Rent Administrator's calculations be 
          amended based on the foregoing.

          On January 14, 1987, a notice was sent to the complainant  tenant
          stating the filing with the DHCR of the owner's petition and  the
          opportunity to respond thereto.  The record shows that the tenant 
          did not file a response with the DHCR.

          The Commissioner is of the opinion that this petition  should  be

          The Commissioner notes that the Rent Administrator's calculation of 
          the lawful stabilization rents for the subject apartment failed to 
          include the period from May 1, 1987 to the date of issuance of the 
          Administrator's order.

          Evidence in the record shows that the owner voluntarily reduced the 
          complainant tenant's monthly rent to $700.17, effective December 1, 
          1985, and credited this tenant, in part, in the amount of $195.00 
          for overcharges occurring prior thereto.  The record further shows 
          that, effective May 1, 1987, the owner again voluntarily  reduced
          this tenant's rent to $694.89 and credited him in the  amount  of
          $138.04, the amount of $138.04 reflecting the balance in credit for 
          overcharges occurring during  the  period  October  15,  1984  to
          December 1, 1985 and full credit for overcharges occurring during 
          the period December 1, 1985 to May 1, 1987.

          Accordingly, the Commissioner finds that the complainant tenant had 
          been overcharged in rent prior to May 1, 1987 but that said tenant 
          was fully credited for such overcharges.

          Therefore, the Rent Administrator's order finding overcharges 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. 

                                                    JOSEPH A. D'AGOSTA     
                                                    DEPUTY COMMISSIONER    



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