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

          APPEAL OF                              DOCKET NO.:               
                                                 CA 110175 RO 
                                                 DISTRICT RENT              
                                                 ADMINISTRATOR'S DOCKET     
                                                 NO.: Q - 3122115 - R       
              CAMPUS ASSOCIATES,
                                                 TENANT: Jeanne Shear       

                              PETITIONER      : 


               On January 22, 1988, the above-named owner filed a  Petition
          for Administrative Review of an Order issued on December 24, 1987 
          by a District  Administrator  concerning  housing  accommodations
          known as 68-18  150th  Street,  Apartment  461A,  Flushing,  N.Y.
          wherein the  District  Rent  Administrator  determined  that  the
          tenant had been overcharged. 
               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  February  28,
          1984 by the filing of a rent overcharge complaint by the  tenant.
          The tenant took occupancy pursuant to a lease commencing June 1, 
          1981 and expiring May 31, 1983 at  a  monthly  rent  of  $322.10,
          which was increased to $330.19 during the term of said lease  for
          major capital improvements.

               The  owner  submitted  a  rental  history  for  the  subject

               In Order Number Q 3122115 R, the District Rent Administrator 
          determined that the tenant had been overcharged in  rent  in  the
          amount of $1818.55, including interest and excess rent  security,
          and directed the owner to refund such overcharge to  the  tenant.
          For the renewal lease commencing June 1, 1985  and  expiring  May

          ADM. REVIEW DOCKET NO.: CA 110175 RO
          31, 1987, the Administrator established the lawful  stabilization
          rent as $346.93.  

               In this petition the owner requests that the Administrator's 
          Order be reversed.  The owner contends that the Order  failed  to
          show how the monthly rent of $346.93, for  the  lease  commencing
          June 1, 1985 and expiring May 31,  1987,  and  total  overcharges
          were established.  The owner further contends that  there  should
          be no overcharges.

               In answer to the petition the complainant tenant stated that 
          it was improperly being charged an increase  in  rent  for  major
          capital improvements which, the tenant further stated, were  made
          prior to its occupancy of the subject apartment. 

               In response to the tenant's answer (cited above), the  owner
          stated, in essence, that  the  major  capital  improvements  were
          completed after the commencement of the  tenant's  vacancy  lease
          and that an application for an MCI rent  increase  was  filed  in
          1982.  The owner submitted with its response a copy of Order  No.
          OM 3547 which provided for an MCI  rent  increase  and  indicated
          the filing date of the MCI application as  April  7,  1982.   The
          owner also submitted with its response a  copy  of  the  tenant's
          first lease and rent guidelines rider.  

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

               The Commissioner notes that the Administrator's Order failed 
          to take into account the rent allowances for electrical inclusion 
          to which the owner was entitled since electricity is included  in
          the rent.  In addition the owner was  entitled  to  an  MCI  rent
          increase pursuatn to Order No.  OM  3547  at  the  start  of  the
          tenant's renewal lease.  Contrary to the tenant's contention, the 
          MCI application was filed after the tenant commenced her  vacancy
          lease and was not included in said  vacancy  lease.   When  these
          factors are taken into account,  it  is  apparent  that  no  rent
          overcharge in fact occurred.  


               If the owner has already complied with  the  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 twenty four equal  monthly  installments.   Should
          the tenant vacate after the issuance of this Order  and  Opinion,
          or  have  previously  vacated,  said  arrears  shall  be  payable

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

               ORDERED, that this petition be,  and  the  same  hereby  is,
          granted and that the District Rent Administrator's Order be,  and
          the same hereby  is,  revoked  and  it  is  found  that  no  rent
          overcharge occurred.


          ADM. REVIEW DOCKET NO.: CA 110175 RO

                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner



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