DOCKET NO.: CA 610271 RO  
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK  11433

          APPEAL OF                               DOCKET NO.: CA 610271 RO

               STEVEN FINKELSTEIN                 DRO DOCKET NO.:           
                                                  AJ 610140 R
                                                  TENANT: Randall Moore      


          On January 28, 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 the housing accommodations 
          known as Apartment 6D, 1225 Sherman Avenue, Bronx, 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 issue raised by the administrative appeal.

          This proceeding was originally commenced by the filing of a rent 
          overcharge complaint by tenant.  The tenant took occupancy 
          pursuant to a lease commencing July 1, 1982 and expiring June 30, 
          1983 at a monthly rent of $204.00.
          In Order Number AJ 610140 R, the District Rent Administrator 
          established the initial legal registered rent on April 1, 1984 at 
          $204.00 per month, and ordered a refund of the overcharges in the 
          amount of $293.81 through December 31, 1987 including interest 
          and excess security.

          In this petition, the owner contends that the District Rent 

          DOCKET NO.: CA 610271 RO  

          Administrator's Order is incorrect and should be reversed because 
          the owner was granted a Major Capital Improvement rent increase, 
          the owner notified the Administrator of this fact during 
          processing, and finds no basis for the Administrator to have 
          lowered the rent.

          The Commissioner is of the opinion that this petition should be 

          While the Administrator did take into account the Major Capital 
          Improvement rent increase which the owner had been granted, the 
          Administrator incorrectly applied Guideline 17 to the lease 
          beginning October 1, 1986.  Guideline 18 should have applied to 
          that lease which provided for a 9% increase for a two year lease 
          plus $15.00 for lease amounts less than $350.00.

          Application of the correct Guidelines increase results in no 

          If the owner has already complied with the Rent 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 six equal monthly installments.  Should the tenant 
          vacate after the issuance of this order or have already vacated, 
          said arrears shall 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 the District Rent Administrator's order be and the same 
          hereby is revoked and it is determined that the tenant was not 


          JOSEPH A. D'AGOSTA
          Deputy Commissioner

          DOCKET NO.: CA 610271 RO  


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