CB 410015 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.: CB 410015 RO

            
             MILFORD MANAGEMENT CORPORATION,                                  
                                                 DRO DOCKET NO.: L 3114362 R
                                                 CDR 25,560 AS AMENDED

                                                 TENANTS: JEFFREY AND DONNA   
                                   PETITIONER                LENOBEL
          ------------------------------------X                             



            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                        IN PART


          On February 1, 1988, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued as 
          amended on December 29, 1987, by the Rent Administrator, 10 
          Columbus Circle, New York, New York, concerning the housing 
          accommodations known as 155 West 68th Street, New York, New York 
          Apartment No. 615, wherein the Rent Administrator determined that 
          the owner had overcharged the tenant.

          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 Administrative Appeal is being determined pursuant to the 
          provisions of Section 42A of the Rent Stabilization Code.

          The issue herein is whether the Rent Administrator's order was 
          warranted.

          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 in March 
          1984 of a rent overcharge complaint by the tenant who stated in 







          CB 410015 RO

          substance that the owner had not supplied a complete rental history 
          pursuant to Section 42A of the Rent Stabilization Code.  The 
          tenants had resided in the subject apartment until April 14, 1982 
          and relocated to apartment 603 in the same building on April 15, 
          1982.

          In answer to the complaint, the owner stated in substance that 
          there was no overcharge and submitted leases from October 1, 1969 
          plus bills for new equipment installed in the subject apartment.

          In Order Number CDR 25,560 as amended, the Rent Administrator had 
          defaulted the owner, determined that the tenants had been 
          overcharged and directed a refund to the tenants of $2,700.88 
          including excess security through April 15, 1982.

          In this petition, the owner alleges in substance that the 
          overcharges should be less because the Rent Administrator failed to 
          offset the overcharge by allowance for fuel pursuant to Rent 
          Guidelines Board Order (hereafter RGBO) Numbers 10b and 10c which 
          were not previously collected by the owner; erroneously defaulted 
          the owner although a complete set of leases from October 1, 1969 
          were submitted and therefore the rent charged on October 1, 1969 
          should not have been reduced by the default adjustment procedure; 
          the lawful stabilized rent in the lease commencing March 1, 1976 
          was $429.99 although the owner charged only $415.00 and the Rent 
          Administrator's order should be modified to reflect these 
          corrections.

          The tenants failed to respond to the Owner's petition.

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

          An examination of the records in this case discloses that the 
          subsequent tenant of the subject apartment who took occupancy April 
          15, 1982 also filed a complaint of Rent Overcharge in March 1984.  
          Under Docket L 3111013 R and CDR 26393, an order was issued on 
          November 10, 1986 finding a rent overcharge for the subsequent 
          tenant and establishing the rental history of the subject apartment 
          including the lawful stabilization rent during the occupancy of the 
          complainants from April 1, 1978 through April 14, 1982.  That order 
          was subsequently modified by the Commissioner on March 28 1990 
          under Docket AL 410324 RO and as no timely judicial review was 
          filed pursuant to Article 78, is a final determination establishing 
          the rental history of the subject apartment.

          With regard to the owner's contention that the Rent Administrator 
          erroneously used the default procedure to establish the October 1, 
          1969 lawful stabilization rent, the owner is correct in that the 
          default procedure was not warranted since the owner was only 
          required to submit a rent history from June 30, 1974.

          In the instant case, a vacancy lease commencing May 15, 1973 
          through May 31, 1976 destabilized the apartment which then became 
          subject to the Emergency Tenant Protection Act on July 1, 1974 at 
          the rent charged and paid on June 30, 1974.

          The Commissioner rejects the owner's contention that although the 


          CB 410015 RO

          rental charged was less, the lawful stabilization rent was $429.99 
          effective March 1, 1976.  The principle established in Collingwood 
          Enterprises provides that where the actual rent charged is less 
          than the rent with maximum permitted increases, the lawful 
          stabilization rent is limited to the rent charged.

          The Commissioner however acknowledges that the owner is correct in 
          its contentions that the overcharge should be less because the 
          lawful stabilization rents for the subject apartment were 
          established by the Commissioner's prior opinion AL 410324 RO and 
          the Rent Administrator failed to offset the overcharge by the fuel 
          surcharges to which the owner was entitled under RGBO Numbers 10b 
          and 10c.

          Taking the aforementioned factors into account, the Commissioner 
          has recalculated the overcharge for the subject apartment during 
          the complainants' occupancy by utilizing the lawful stabilization 
          rents established pursuant to the Commissioner's prior opinion
          AL 410324 RO and offsetting the overcharge by the RGBO 10b and 10c 
          fuel surcharges.

          The lawful stabilization rents and amount of rent overcharge are 
          set forth on the amended rent calculation chart attached hereto and 
          made a part hereof.

          This order may, 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, be filed and enforced in the same 
          manner as a judgment.

          THEREFORE, in accordance with the provisions of the Rent 
          Stabilization Law and Code as well as the Commissioner's prior 
          opinion, it is

          ORDERED, that this petition for administrative review be, and the 
          same hereby is, granted in part, and, that the order of the Rent 
          Administrator be, and the same hereby is, modified in accordance 
          with this order and opinion as well as the Commissioner's prior 
          opinion AL 410324 RO.  The lawful stabilization rents and the 
          amount of the rent overcharge are established on the attached chart 
          which is fully made a part of this order.  The amount of the rent 
          overcharge through April 15, 1982 is $1,340.60.

          ISSUED
                                                                      
                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner




    

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