CG 410192 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

          APPEAL OF                               DOCKET NO.:  CG 410192 RO

                 TRAFALGAR PROPERTIES,
                                                  DRO DOCKET NO.: BC 510056 RP/1990


                                      IN PART 

          On  July  27,  1988  the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review of an order issued on June 21, 
          1988 by the District Rent Administrator, 10 Columbus Circle,  New
          York,  New  York,  concerning  housing  accommodations  known  as
          Apartment 2R at 45 Tiemann Place, New York, New York, wherein the 
          District Rent  Administrator  determined  the  fair  market  rent
          pursuant to a comparability study and  the  special  fair  market
          rent guideline promulgated by the New York City  Rent  Guidelines
          Board for use in calculating fair market rent appeals.

          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 on June 10, 1984 by  the
          filing  by  the  tenant  of  an  objection   to   the   apartment
          registration, including a fair market rent  appeal.   The  tenant
          took occupancy pursuant to a lease commencing April 19, 1984  and
          expiring April 30, 1985 at a monthly rent of $625.00.

          The owner was served with a copy of the  tenant's  objection  and
          was afforded an opportunity to submit June 30, 1974 rent data for 
          comparable apartments.  In answer to the application,  the  owner
          submitted a list of current rentals for apartments located in the 
          subject building and a number of other buildings.

          In an Order and Determination issued on June 9, 1986 under Docket 
          Number 1990, the District Rent Administrator adjusted the initial 
          legal regulated rent by establishing  fair market rent of $248.02 
          effective April 19, 1984, the commencement date  of  the  initial
          rent stabilized lease.  Based on the owner's  failure  to  submit
          usable comparability data, the Administrator determined the  fair
          market rent utilizing the  special  fair  market  rent  guideline

          CG 410192 RO

          Subsequent thereto, the owner filed a petition for administrative 
          review challenging the Administrator's order.  In  its  petition,
          the owner contended that the Administrator had failed to consider 
          the  owner's  submission  of  current  comparable   rentals   for
          apartments in the subject building and neighboring  buildings  as
          well as a subsequent submission of June  30,  1974  comparability
          data for the subject line.  The owner submitted proof of  service
          of these two submissions on the Division by certified mail during 
          the  proceeding  before  the  Administrator.   The   owner   also
          contended, among other things, that the use of  tenant  objection
          forms for the filing of fair market  rent  appeals  violates  the
          letter and spirit of the Emergency Tenant  Protection  Act  since
          such complaints are filed with no consideration of what is  being

          By order issued on March 25, 1987 under Docket Number ARL 07529-U,
          the Commissioner found that the proceeding should be remanded  to
          the Administrator for further processing to afford the  owner  an
          opportunity to complete its  submission  of  post-June  30,  1974
          comparability data and to consider the owner's submission of June 
          30, 1974 comparability data for the subject line.  Concerning the 
          owner's challenge to the filing of a fair market rent appeal on a 
          tenant's objection form, the Commissioner noted  that  forms  are
          devised by the Division of Housing and Community  Renewal  (DHCR)
          pursuant to its administrative  functions  to  allow  parties  to
          assert their rights under the law.  The Commissioner  found  that
          since the tenant has ninety days from service  of  the  apartment
          registration form on the tenant  to  file  either  an  overcharge
          complaint or a fair market rent  appeal,  it  is  appropriate  to
          afford the tenant an opportunity to  file  such  a  complaint  or
          appeal on a tenant's objection to apartment registration form.

          By order issued on June 21, 1988, the  Administrator  established
          the fair market rent at $268.64 effective  April  19.  1984,  the
          commencement date of the  initial  rent  stabilized  lease.   The
          Administrator utilized two apartments from the  subject  line  in
          the comparability study  (Apartment  3R  and  6R),  but  did  not
          utilize any other apartments cited by  the  owner  based  on  the
          owner's failure to establish that those rents were not subject to 
          challenge or had already been challenged and had  a  lawful  rent

          In this petition, the owner asserts that the Administrator failed 
          to consider outside comparability data in establishing  the  fair
          market rent.  The owner also asserts that the tenant's  objection
          to rent registration was not a valid fair market rent appeal.

          In  answer,  the  tenant   states,   in   substance,   that   the
          Administrator's order is correct and should be affirmed.

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

          The owner's challenge to the filing of the tenant's  fair  market
          rent appeal on the tenant's objection form was properly addressed 
          and rejected in  the  Commissioner's  prior  order  and  opinion.
          Therefore this portion of the owner's petition is denied.

          CG 410192 RO
               Pursuant  to  Sections  2522.3(e)  and  (f)  of   the   Rent
          Stabilization Code effective May 1, 1987, for  fair  market  rent
          appeals  filed  after  April  1,  1984,  comparability  will   be
          determined based on the following:

               (e)...(1) Legal regulated rents,  for  which   the  time  to
                         file a Fair  Market  Rent  Appeal  has
                         expired  and  no  Fair   Market   Rent
                         Appeal is then pending,  or  the  Fair
                         Market Rent Appeal  has  been  finally
                         determined,  charged  pursuant  to   a
                         lease  commencing  within  a  4   year
                         period  prior  to,  or  a   one   year
                         period     subsequent     to,      the
                         commencement  date  of   the   initial
                         lease      for       the       housing
                         accommodations involved; and

               (f)       Where the  rents  of  the  comparable
                         housing     accommodations      being
                         considered   are   legal    regulated
                         rents, for which the time to  file  a
                         Fair   Market   Rent    Appeal    has
                         expired, and such rents  are  charged
                         pursuant  to  a  lease  ending   more
                         than   1   year    prior    to    the
                         commencement  date  of  the   initial
                         lease   for   the   subject   housing
                         accommodation, such  rents  shall  be
                         updated by guidelines  increases  for
                         1  year  renewal  leases,  commencing
                         with the expiration  of  the  initial
                         lease  for  the  comparable   housing
                         accommodations to a  date  within  12
                         months prior to the  renting  of  the
                         housing accommodation involved.

          The record in this case indicates that the owner was not afforded 
          an opportunity to  submit  comparability  data  pursuant  to  the
          requirements of the current Rent Stabilization  Code.   Therefore
          the Commissioner finds that the proceeding should be remanded  to
          the Administrator for further processing in order to  afford  the
          owner an opportunity to submit comparability data pursuant to the 
          requirements of the Rent  Stabilization  Code  effective  May  1,

          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 proceeding be and the same hereby is, remanded to 
          the  District  Rent  Administrator,  for  further  processing  in
          accordance with this order and opinion.  The automatic stay of so 
          much of the District Rent Administrator's  order  as  directed  a
          refund is hereby continued until  a  new  order  is  issued  upon
          remand.  However, the Administrator's  determination  as  to  the
          rent is not stayed and shall remain in  effect,  except  for  any
          adjustments pursuant to lease renewals, until  the  Administrator
          issues a new Order upon remand.

          CG 410192 RO

                                                  ELLIOT SANDER
                                                  Deputy Commissioner

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