CA 110137 RO

                                  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.: CA 110137 RO
                                                           
               Kraus Mgmt. Inc.,               DISTRICT RENT ADMINISTRATOR
                                               DOCKET NO.: 42630
                                                                            
                                                                           
                                   PETITIONER  Tenant: Serafina Perdomo
          -----------------------------------X

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          On January 13, 1988, the above named owner filed a Petition for 
          Administrative Review of an Order issued on December 16, 1987 by 
          the District Rent Administrator concerning the housing 
          accommodations known as 69-38 138th Street, Apartment B, Flushing, 
          New York wherein the District Rent Administrator established base 
          date services and determined that the tenant was overcharged in 
          rent.

          The issue in this appeal is whether the District Rent 
          Administrator's order was warranted.

          The applicable sections of the Law are Sections 2520.6 and 2526.1 
          of the Rent Stabilization Code.

          The Commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issues raised by the administrative appeal.

          This proceeding was originally commenced on August 16, 1984 by the 
          filing of a Tenant's Objection To Rent/Services Registration 
          wherein the tenant indicated that, among other things, she was 
          being overcharged in rent.  The tenant also listed certain services 
          which she indicated should be included in the Registration 
          including the provision of a community room which commenced in 
          1979.

          In answer to the filing of the Tenant's Objection To Rent/Services 
          Registration, the owner stated, in essence, that it was maintaining 
          all base date services and that screen doors and storm windows were 
          not base date services, and that the tenants have been provided 
          with the use of a community room on a temporary basis.













          CA 110137 RO

          In Order No. 42630, the Rent Administrator ordered that the 1984 
          Registration be amended to reflect that the owner provides all the 
          services cited by the tenant in her objection except screen doors 
          and storm windows, but that certain items cited therein need not be 
          registered to the extent that said items are an integral part of 
          the structure, normal maintenance and repair, or required by law.
          In addition, the Administrator determined that the tenant had been 
          overcharged in the amount of $155.94, including interest, and 
          directed the owner to refund such overcharge to the tenant.  
          Specifically, the Administrator determined that, for the renewal 
          lease commencing August 1, 1981 and expiring July 31, 1984, the 
          total amount of overcharge in rent was $129.60.  In addition, for 
          the subsequent renewal lease commencing August 1, 1984 and expiring 
          July 31, 1986, the total amount of overcharge in rent was $24.00.  
          Accordingly, the Administrator determined that the owner was liable 
          for $153.60 ($129.60 + $24.00) in overcharges plus $2.34 in accrued 
          interest for the period April 1, 1984 through July 31, 1986, 
          totalling $155.94 ($153.60 + $2.34).  

          In this petition the owner contends in substance that the Rent 
          Administrator's Order should be modified.  The owner states that it 
          is not liable for overcharges prior to September 1, 1982 to the 
          extent that said overcharges occurred during the prior ownership.  
          The owner further states that the Community Room, which was listed 
          in the Administrator's determination among the services to be 
          included in the 1984 Registration, was not a base date service and 
          that a previous Administrator's Order (30929) determined that the 
          tenants have been provided with the use of a Community Room on a 
          temporary basis.

          The Comissioner notes that on March 25, 1992 the owner was mailed 
          a Notice of Opportunity to Present Further Information and 
          Evidence.  However, the owner did not respond to said notice.

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

          Section 2520.6(r) of the Rent Stabilization Code provides in 
          pertinent part that "required services" are those services 
          furnished or required to be furnished to the continuously 
          stabilized housing accommodations on May 31, 1968, and all 
          additional services provided or required to be provided thereafter.  
          The base date for determining required individual apartment 
          services in apartments which were either vacancy destabilized or 
          decontrolled between July 1, 1971 and June 30, 1974 is May 29, 
          1974.

          In the instant case an examination of the record disclosed that, 
          the provision of a Community Room was, in fact, provided by the 
          owner after the applicable base date (either May 31, 1968 or May 
          29, 1974).  Therefore, the provision of a Community Room is a 
          required service.






          CA 110137 RO


          Section 2526.1(f)(2) of the Rent Stabilization Code provides in 
          pertinent part that, for overcharge complaints filed or overcharges 
          collected on or after April 1, 1984, a current owner shall be 
          responsible for all overcharge penalties based upon overcharges 
          collected by any prior owner.

          In the instant case, the tenant's overcharge complaint was filed 
          after April 1, 1984.  Accordingly, the owner herein is responsible 
          for the refund of the entire overcharge ($155.94) to the tenant.  
          However, this order is issued without prejudice to any action the 
          owner herein may have against any prior owner for the refund of 
          overcharges actually collected by any prior owner. 

          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.  In addition because this 
          determination concerns lawful rents only through the date of 
          January 31, 1984 used in the Administrator's Order being appealed, 
          the owner is further directed to adjust subsequent rents to an 
          amount no greater than that determined by the Rent Administrator's 
          order plus any lawful increases. 

          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, the tenant may offset against any rent thereafter due the 
          owner not in excess of twenty percent per month of the overcharge. 

          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          it is

          ORDERED, that this petition be, and the same hereby is, denied, and 
          that the District Rent Administrator's Order be, and the same 
          hereby is, affirmed.

          ISSUED:

                                                                          
                                             JOSEPH A. D'AGOSTA
                                             Acting Deputy Commissioner






    

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