CC 410189 RO

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

          APPEAL OF                              DOCKET NO. CC 410189 RO

                                              :  DISTRICT RENT ADMINISTRATOR'S
               ISTA Management Co.,              DOCKET NO. L 311795 R
                                                 TENANT: Alfred DeMaria       
                                PETITIONER    : 


          On March 24 1988, the above-named petitioner-owner refiled a 
          Petition for Administrative Review of an order issued on       
          January 27, 1988, by the Rent Administrator, 10 Columbus Circle,    
          New York, concerning the housing accommodations known as 210 East 
          68th Street, New York, New York, Apartment No. 7G, wherein the Rent 
          Administrator determined that the owner had overcharged the tenant.

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

          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 commenced on February 27, 1987 by the filing of 
          a rent overcharge complaint by the tenant.  In answer to the 
          complaint, the owner submitted a complete rental history for the 
          subject apartment.

          In Order Number 32,465, the Rent Administrator determined that the 
          tenant had been overcharged in the amount of $7,243.54, and directed 
          the owner to refund such overcharge to the tenant. 

          In this petition, the owner requests modification of the 
          Administrator's order.  The owner contends, in substance, that the 
          Administrator's calculations below did not include one of two 
          agency-authorized Major Capital Improvements (MCI) increases.  

          The Commissioner is of the opinion that this petition should be 

          The owner alleges that the Administrator failed to include an 
          agency-authorized MCI increase in the calculations.  If a petition 
          for administrative review requests that the Commissioner examine an 
          alleged error in the Administrator's calculations, the Commissioner 
          will also correct any other errors discovered during the course of 
          this reexamination.  In this case, application of the correct 

          CC 410189 RO

          processing procedure would more than negate any benefit to the owner 
          based on the arguments raised by the owner in his petition.  The 
          Commissioner notes that the Administrator erred in failing to remove 
          the temporary portion of the MCI increases in determining the lawful 
          stabilization rent.  This error more than negated any benefit to the 
          owner that might accrue by virtue of inclusion of the corrections 
          alleged in the owner's petition for administrative review.  As such, 
          and in the absence of a timely petition for administrative review by 
          the tenant, the Commissioner finds it appropriate to deny this 

          Because this determination concerns lawful rents only through       
          January 31, 1988, the owner is cautioned to adjust subsequent rents 
          to an amount no greater than that determined by the Rent 
          Administrator's order plus any lawful increases, and to register any 
          adjusted rents with this order and opinion being given as the 
          explanation for the adjustment.

          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 or not in excess of twenty percent per month thereof may 
          be offset against any rent thereafter due the owner.

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

          ORDERED, that this petition for administrative review be, and the 
          same hereby is, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is, affirmed.


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner


          CC 410189 RO


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