CA 410215 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 410215 RO

               Avon Bard Co.                   DISTRICT RENT ADMINISTRATOR
               c/o A.J. Clarke Mgmt. Corp.,    DOCKET NO.: AC 410268 R  
                                               Tenant:  Nadine  Schefren  &
                                                       Francine Chassman   
                                   PETITIONER
          -----------------------------------X

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                       IN PART

          On January 7, 1988,  the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          December 28, 1987, by  the  District  Rent  Administrator,  Gertz
          Plaza, Jamaica, New York, concerning housing accommodations known 
          as Apartment 6C, 320  East  22nd  Street,  New  York,  New  York,
          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 issue raised by the administrative appeal.

          This proceeding was originally commenced by the filing of a  rent
          overcharge complaint by the tenants.  The tenants took  occupancy
          pursuant to a lease commencing  November  1,  1985  and  expiring
          October 31, 1987 at a monthly rent of $1125.00.

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

          In the order herein appealed,  the  District  Rent  Administrator
          established the initial legal registered rent of April 1, 1984 at 
          $885.00 per month, and ordered a refund of the overcharges in the 
          amount of $1633.30 including interest and  excess  security.   In
          the order, the Administrator rejected the owner's assertions that 
          it was entitled to a rent increase  representing  1/40th  of  the
          cost of improvements and found  that  the  owner  had  failed  to
          submit copies of bills, invoices and cancelled checks.

          In this petition, the  owner  contends  that  the  District  Rent
          Administrator's Order is incorrect and should be modified because 
          the  owner  documented  the  cost  of  the  improvements  in  the
          proceeding  before  the  Rent   Administrator,   and   the   rent
          calculation chart contains a  typographical  error  in  column  7
          specifically, the figure of $55.67 should actually be $55.57.

          In answer to this petition, the tenants contend  that  the  order
          should be upheld because of the owner's failure  to  comply  with






          CA 410215 RO
          the  agency's  request  to  submit  evidence  of  the   cost   of
          improvements.

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

          The evidence of record indicates that in letters received by  the
          DHCR on October 15, 1987 and October 23, 1987 the owner  provided
          copies  of  the  invoices  and  cancelled  checks  for  apartment
          improvements totalling $1546.18, 1/40th the cost of which amounts 
          to $38.65 per month.  The invoices are  for  a  refrigerator  and
          stove, as well as  for  construction  of  a  second  bedroom  and
          closet.  All of these improvements had been contemplated  in  the
          lease.  

          The owner is credited with 1/40 of the cost of the second bedroom 
          construction beginning November 1, 1985.  The increase of  1/40th
          of the cost of the appliances begins  March  1,  1986  since  the
          tenants advised in  their  complaint  that  the  appliances  were
          installed some five months after the beginning of the  lease  but
          were in place on  March  17,  1986,  the  date  of  the  tenants'
          complaint.

          The  error  pointed  out  by  owner  in  column  7  of  the  rent
          calculation chart is typographical and is rendered  moot  by  the
          modifications contained herein.

          Accordingly,   the   Commissioner    establishes    the    lawful
          stabilization rent at $1088.18 as of November 1,  1985;  $1108.08
          as of March 1, 1986; and $1180.11 as of  November  1,  1987;  and
          finds that the refund now due the tenant  is  $566.77  which  has
          been computed as follows:
               November 1, 1985 - February 28, 1986 :
                                   $147.28   ($36.82 per month)
               March    1, 1986 - October  31, 1987 :
                                   $338.40   ($16.92 per month)
               November 1, 1987 - December 31, 1987 :
                                   $36.04    ($18.02 per month)
               

               Interest       :    $27.03
               Excess Security:    $18.02
                                            
                                  $566.77

          Any arrears owed by the tenant as a result of this order shall be 
          paid by the tenant to the owner  in  equal  monthly  installments
          over the course of the next twelve months.

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

          ORDERED, that this petition be, and the same hereby is granted in 
          part and the District Rent Administrator's order be and the  same
          hereby is modified in accordance with  this  order  and  opinion,
          and the total amount of the overcharge is $566.77.

          ISSUED:







          CA 410215 RO
           
                                                       ELLIOT SANDER
                                                       Deputy Commissioner





    

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