CA 410131 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 410131 RO

                    REGENCY JOINT VENTURE,
                                                  DRO DOCKET NO.: L 3113428 R

                                  PETITIONER
          ----------------------------------X                                   

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

          On January 19, 1988, the above-named petitioner filed a  Petition
          for Administrative Review against an order issued on December 24, 
          1987, by the District Rent Administrator, 10 Columbus Circle, New 
          York,  New  York,  concerning  housing  accommodations  known  as
          Apartment 28C at 245 East 63rd Street, New York, New York wherein 
          the District Rent Administrator determined that  the  tenant  had
          been overcharged.

          The Commissioner notes that this proceeding was  initiated  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 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 by the filing of a  rent
          overcharge complaint  by  the  tenant  with  the  New  York  City
          Conciliation and Appeals Board, one of the  predecessor  agencies
          to the Division of Housing and  Community  Renewal  (DHCR).   The
          tenant took occupancy pursuant to a lease commencing December  1,
          1983 and expiring January 30, 1985 at monthly rent of $980.51.


          The owner was served  with  a  copy  of  the  complaint  and  was
          requested to submit rent records to proved the lawfulness of  the
          rent being  charged.   The  owner  submitted  the  required  rent
          records.

          In Order Number  CDR  32,201,  the  District  Rent  Administrator
          established the lawful stabilized rent for the  tenant's  initial
          lease at $951.37 and directed the owner to refund overcharges  in
          the amount of  $771.95,  including  interest  on  the  overcharge






          CA 410131 RO
          collected on or after April 1, 1984.

          In this petition, the owner contends that the Rent  Administrator
          failed to include a vacancy allowance for  the  tenant's  initial
          lease commencing December 1, 1983; that the owner was entitled to 
          a 10% vacancy allowance for that lease under  Guideline  15,  and
          that the tenant was not overcharged.

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

          Rent Guideline  Board  Order  Number  15,  applicable  to  leases
          commencing between  October  1,  1983  and  September  30,  1984,
          provides for a 15% vacancy allowance where no vacancy  allowances
          have been charged since July 1, 1975,  a  10%  vacancy  allowance
          where a vacancy allowance was last charged between July  1,  1975
          and  June  30,  1979,  a  5%  vacancy  allowance  where   vacancy
          allowances totalling more than 0% but less than 15% were  charged
          since July 1,  1979,  and  no  vacancy  allowance  where  vacancy
          allowances totaling 15% or more were charged since July 1, 1979.

          In this case, prior to  the  tenant's  initial  lease  commencing
          December 1, 1983 under Guideline 15, a vacancy allowance was last 
          charged for the subject apartment between July 1, 1975  and  June
          30, 1979.  The owner was therefore  entitled  to  a  10%  vacancy
          allowance for the tenant's initial lease.

          Recalculation of  the  lawful  stabilized  rent  to  include  the
          correct  vacancy  allowance  for  the  tenant's   initial   lease
          indicates that the tenant was not overcharged.

          Any arrears owed by the tenant as a result of this order  may  be
          paid by the tenant in equal monthly installments over the  course
          of the next 12 months.  If the tenant  should  vacate  after  the
          issuance of this order or have already vacated, all arrears  will
          be payable immediately.





          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 determined that the tenant was  not
          overcharged.



          ISSUED:
                                                  ------------------------
                                                  ELLIOT SANDER
                                                  Deputy Commissioner
           
             
                                          
    

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