CA410093RO

                                  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.CA410093RO
                                              :  DRO DOCKET NO.L3111019RT
               MELOHN PROPERTIES                 TENANT: JAMES R. COLLINS

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


               On January 6, 1988, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          December 11, 1987, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 32 West 82nd Street, New York, New York, Apartment No. 8B, 
          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.

               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 originally commenced in March, 1984, by the 
          filing of a rent overcharge complaint by the tenant in which the 
          tenant stated that he had first moved to the subject apartment on 
          July 20, 1976 at a rental of $425.00 per month.

               In response to the tenant's complaint, the owner submitted a 
          complete rental history and advised that on November 4, 1986 it had 
          sent a refund check to the tenant in the amount of $4,351.65 for 
          past overcharges and had reduced the tenant's rent to $572.13 
          effective November, 1986.

               In Order Number CDR 32,098, the Rent Administrator determined 









          CA410093RO



          that the tenant had been overcharged in the amount of $4933.00 
          through December 8, 1987, directed the owner to refund such 
          overcharge to the tenant, and advised that if the owner had already 
          refunded $4,351.65 to the tenant, that this amount could be deducted 
          from the overcharge amount.

               In this petition, the owner alleges in substance that there is 
          no remaining overcharge in that the tenant cashed the refund check 
          in December, 1986, and the Rent Administrator failed to credit the 
          owner with reducing the rent effective November, 1986, but rather 
          calculated the overcharge as if no rent reduction had been made.  In 
          support of its contentions, the owner submitted a copy of the 
          cancelled refund check cashed by the tenant and rent ledgers showing 
          the rent had been reduced effective November, 1986.

               The tenant did not file an answer to the owner's petition.

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

               An examination of the records in this case shows that the owner 
          is correct in its contention that it was not credited with reducing 
          the rent effective November, 1986 when the Rent Administrator 
          determined the amount of the overcharge.  Further the owner has 
          submitted evidence showing it refunded $4351.65 to the tenant in 
          December, 1986.  When these factors are taken into account, it is 
          apparent that the entire overcharge including interest on the amount 
          of the overcharge occurring on and after April 1, 1984, and excess 
          security, was refunded to the tenant prior to the issuance of the 
          Rent Administrator's order.  Therefore, that portion of the Rent 
          Administrator's order finding a rent overcharge must be revoked.  
          However, the Rent Administrator's order correctly listed the lawful 
          stabilization rents for the subject apartment and this part of the 
          order remains in full force and effect.

               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 
          increases.














          CA410093RO

               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, modified in accordance 
          with this order and opinion.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




                     




































    

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