BL610339RO




                                  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  CHARLES WAXMAN, for         DOCKET NO.  BL610339RO
                                                 refiling of BK610033RO
                                              :  DRO DOCKET NO.  24899
          SFJ REALTY CORP.                       TENANT: ALZONDIA FERMAINT

                                PETITIONER    : 
          ------------------------------------X                             
            ORDER AND OPINION REMANDING PROCEEDING FOR FURTHER PROCESSING

               On Dcember 29, 1987, the above-named petitioner-owner timely 
          refiled a Petition for Administrative Review against an order issued 
          on October 23, 1987, by the Rent Administrator, 10 Columbus Circle, 
          New York, concerning the housing accommodations known as 16 Elliot 
          Place, Bronx, New York,apartment number 1A, wherein the Rent 
          Administrator determined the fair market rent pursuant to the 
          special fair market rent guideline promulgated by the New York City 
          Rent Guidelines Board for use in calculating fair market rent 
          appeals.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2522.3 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 by the tenant's filing a 
          complaint on July 31, 1984 that the initial legal registered rent 
          was an overcharge.  

               In answer  to the complaint, the owner stated that the 
          complainant was the first rent stabilized tenant following a vacancy 
          decontrol on February 1, 1982.  The owner submitted a copy of the 
          lease of the prior rent controlled tenant but stated that it was 
          unable to submit either a DC-1 or DC-2 notice as most of its records 
          had been destroyed in a fire.  
               
               In Order Number 24899, the Rent Administrator adjusted the 
          initial legal regulated rent by establishing a fair market rent of 
          $268.13 effective February 1, 1982, the commencement date of the 
          initial rent stabilized lease.  The fair market rent was determined 
          solely on the basis of the special fair market rent guideline.  In 
          addition, the Rent Administrator determined that the tenant had paid 
          excess rent of $ 2,103.66 through October 31,1987, and directed the 







          BL610339RO

          owner to refund such excess rent to the tenant.

               In this petition, the owner alleges in substance that the order 
          should be revoked as the rent charged was a comparable rent.  On 
          September 10, 1993, the owner submitted a supplement to its 
          petition.  Said supplement will not be considered herein as it is 
          submitted beyond the permissible time  for consideration.

               In response to the petition, the tenant contends in substance 
          that  that the appeal should be denied and the Administrator's order 
          be upheld.

               The Commissioner is of the opinion that this proceeding should 
          be remanded to the Rent Administrator.  

                    Section 2522.3(e) of the Rent Stabilization Code provides 
          in pertinent part that in determining Fair Market Rent Appeals, 
          consideration shall be given to the applicable guidelines 
          promulgated for such purposes by the Rent Guidelines Board and to 
          rents generally prevailing for substantially similar housing 
          accvommodations in buildings located in the same area as the housing 
          accommodation involved.  The rents for these comparable housing 
          accvommodations may be considered where such rents are:

                    1) Legal regulated rents, for which the time to file a 
               Fair Market Rent appeal has expired and no Fair Market Rent 
               Appeal is pending, or the Fair Market Rent Appeal has finally 
               been determined, charged pursuant to a lease commencing within 
               a 4 year period prior to, or a one year period subsequent to 
               the commencement date of the initial lease for the housing 
               accommodation involved; and

                    2) At the owner's option, market rents in effect for other 
               comparable housing accommodations on the date of the initial 
               lease for the housing accommodation involved as submitted by 
               the owner.

               In the instant case, the owner was not afforded an opportunity 
          to submit post July 1, 1974 comparability data as outlined above.  
          Accordingly, the proceeding must be remanded to allow such a 
          submission.  The tenant should then be given an opportunity to 
          comment on any submission by the owner.  

               Therefore, in accordance with the provisions of the Rent 
          Stabilization Law and Code, it is

               Ordered, that this petition be, and the same hereby is, granted 
          to the extent of remanding the proceeding to the Rent Administrator 
          for further processing in accordance with this order and opinion.
          The automatic stay of so much of the District Rent Administrator's 
          order as directed a refund is hereby continued until a new order is 
          issued upon remand.  However, the Administrator's determination as 
          to the rent is not stayed and shall remain in effect, except for any 
          adjustments pursuant to lease renewal, until the Administrator 
          issues a new order upon remand.
          ISSUED
                                                                        
                                          LULA M. ANDERSON


          BL610339RO

                                          Deputy Commissioner




                     




































    

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