CA410124RO

                                  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. CA410124RO
                                              :  DRO DOCKET NO.L3111711RT
               JORDAN FOX                        TENANT: GAIL DRILLINGS

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


               On January 21, 1988, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          January 13, 1988, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 202 West 82nd Street, New York, New York, Apartment No. 2B, 
          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 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 20 A (4) 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 originally commenced in February, 1984 by 
          the tenant's filing of a fair market rent adjustment application and 
          an overcharge complaint.  The tenant stated that she first moved to 
          the subject apartment on September 15, 1978, pursuant to a two year 
          lease at a rental of $350.00 per month.

               In response to the complaint, the owner submitted a complete 
          rental history from September 15, 1978 and indicated that the tenant 
          herein was the first rent stabilized tenant.









          CA410124RO



               In Order Number CDR 32,283, the Rent Administrator adjusted the 
          initial legal regulated rent by establishing a fair market rent of 
          $299.33 effective September 15, 1978, and directed the owner to 
          refund excess rent of $9,376.09 to the tenant.

               In this petition, the owner alleges in substance that the owner 
          was not credited with a $12.00 fuel adjustment effective January 1, 
          1980 to June 30, 1980 reduced to $8.00 from July 1, 1980 through 
          September 30, 1980 to which the owner was entitled; that the Rent 
          Administrator incorrectly states the complainant's lease term of 
          October 1, 1985 through September 30, 1986 as October 1, 1985 
          through September 30, 1987 and computes the excess rent for this 
          period as 24 months rather than the correct 12 months; and that the 
          Rent Administrator incorrectly listed a major capital improvement 
          rent increase as being .36% rather than the correct 3.60%.

               In answer to the owner's petition, the tenant stated in 
          substance that she hoped any computation errors would be resolved as 
          quickly as possible.

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

               Section 20 A (4) of the Rent Stabilization Code provides in 
          pertinent part that for those dwelling units which were subject to 
          the City Rent Law on June 30, 1974, and thereafter became subject to 
          the Rent Stabilization Law as a result of vacancy, the owner may not 
          increase the rent charged in the initial lease or other rental 
          agreement for a period of one year or until the expiration of the 
          initial lease, or rental agreement, whichever is later.

               In the instant case, the fuel allowance referred to by the 
          owner in his petition occurred during the initial lease after 
          vacancy decontrol.  Accordingly, no rent increase for the fuel 
          allowance is permitted pursuant to Section 20 A (4).

               With regard to the owner's contention concerning the major 
          capital improvement rent increase, it is noted that .36% was a 
          typographical error made by the Rent Administrator, but that the 
          owner was credited by the Rent Administrator with the correct major 
          capital improvement rent increase of $12.28 - 3.60% of the July, 
          1981 rent of $341.24.

               The owner is correct in his contention that the Rent 
          Administrator incorrectly listed the lease commencing October 1, 
          1985 as being a two year lease instead of a one year lease and 
          finding excess rent of $2,118.48 ($88.27 per month x 24 months) 
          during this period instead of the correct excess rent of $1059.24 
          ($88.27 per month x 12 months).  It is noted that the following 
          lease term was correctly listed by the Rent Administrator as 
          commencing October 1, 1986.  Accordingly, the Rent Administrator's 
          order is hereby modified to show the correct lease term of October 






          CA410124RO

          1, 1985 to September 30, 1986 with excess rent for this lease term 
          of $1059.24 and total excess rent of $8316.85 including excess 
          security as of January 31, 1988.  The lawful stabilization rents 
          remain the same as in the Rent Administrator's order.

               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.

               If the owner does not take appropriate action to comply with 
          this order within sixty days from the date of issuance of this 
          order, the tenant may credit the excess rent against the next 
          month(s) rent until fully offset.

               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 in part, and, that the order of the Rent 
          Administrator be, and the same hereby is,  modified in accordance 
          with this order and opinion.  The total amount of excess rent 
          through January 31, 1988 is $8316.85.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner





                     























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