DOCKET NUMBER: SJR 4736; CK 120078-RT (SJR 4337)
                                 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  SJR 4736
     IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
     APPEAL OF                              DOCKET NO.: CK 120078-RT
                                         :              (SJR 4337)
                                            DRO DOCKET NO.: BB 120002-AD
     EDWARD DUNN-RULLEN &
     JOSEPHINE DIAZ        PETITIONER    : 
     ------------------------------------X                             

      ORDER AND OPINION REOPENING PROCEEDING, DENYING PETITION AND REMANDING
         TO RENT ADMINISTRATOR AFTER REVIEW AND RECONSIDERATION PURSUANT 
                               TO JUDGMENT OF COURT

     On November 3, 1988 the abovenamed petitioner tenants (mother & adult son) 
     filed a Petition for Administrative Review  against  an  order  issued  on
     October  21,  1988  by  the  Rent  Administrator  concerning  the  housing
     accommodations known as 35-21 29th  Street,  Basement  Rear,  Long  Island
     City, Queens.

     On November 30,  1989  the  Commissioner  issued  an  order  granting  the
     petition in part.

     The owner, Catrina Stuparich, by her agent, John  Casella,  instituted  an
     Article 78 proceeding  and  the  matter  was  remitted  by  the  Court  as
     discussed more fully infra.

     The issues herein are the regulating  status  of  the  apartment  and  the
     proper rent thereof.

     The herein appealed  order  of  the  Rent  Administrator  found  that  the
     apartment  was  subject  to  rent  control  and  contained  3  rooms   and
     established a rent of $193.91 as of January 1, 1987.

     The record discloses that the building contains 7 apartments and that this 
     apartment (formerly a superintendent's apartment) had been rented to these 
     tenants by a prior owner on February 1, 1956  of  a  rent  of  $65.00  per
     month.  The current owner acquired the building in May 1979 at which  time
     the tenants were paying  $130.00  per  month  as  month-to-month  tenants.
     Various leases were entered into thereafter.

     The rent was established by the Administrator based on various equities in 
     the record and essentially reflected a finding that the current owner  had
     been operating under a bona fide ut erroneous belief  that  the  apartment
     was decontrolled.

     In their petition the tenants, in substance, challenged the room-count and 
     the amount of the rent.

     The Commissioner, as abovenoted, granted the petition in part finding that 
     the apartment contained 2 rooms rather than 3 (based on an  uncontroverted

     floor plan  submitted  by  the  tenants)  and  further  finding  that  the
     Administrator had used an incorrect procedure for establishing  the  rent.






          DOCKET NUMBER: SJR 4736; CK 120078-RT (SJR 4337)
     The rent was reestablished at $108.90 per month based on the original 1956 
     rent updated to reflect various service and financial adjustments.

     In the proceeding before the Administrator the owner had alleged that  the
     apartment was decontrolled because it had been  created  by  a  conversion
     from non-housing  space  in  1950  by  a  prior  owner  but  submitted  no
     conclusive evidence and did not press the point.  Since the  petition  had
     been filed by the tenant's rather than the owner, the Commissioner did not 
     consider that question on appeal.

     In the abovenoted Article 78 proceeding the owner reasserted the claim  to
     decontrol.   The  court,  in  substance,  remitted  the  matter  for   the
     Commissioner to consider that issue.

     In response to a Notice after remit  the  owner  submitted  copies  of  an
     Altered Building Application  approved  July  20,  1950,  approved  plans,
     permits and an architect's affidavit, indicating an ordinary cellar and  6
     apartments in the building and proposing the  creation  of  an  additional
     apartment in the cellar or basement, and a Certificate of Occupancy  dated
     January 9,  1951  reciting  1  apartment  in  the  basement  and  6  other
     apartments on the upper floors.

     Copies were served on the tenants and their attorney and no responses have 
     been received.

     The commissioner, after review and reconsideration pursuant to judgment of 
     the Court, is of the opinion that the petition should be  denied  and  the
     proceeding remanded for further processing.

     The Commissioner finds that the apartment had, in fact, been created by
     conversion from non housing to housing use after February 1, 1947 and  is,
     therefore, decontrolled pursuant to Section 2202.2f(9)  of  the  Rent  and
     Eviction Regulations for New York City.

     However, since the building  contains  7  apartments,  it  is  subject  to
     stabilization.

     The Commissioner further finds that the apartment contains 2 rather than 3 
     rooms and the Stabilization registration should be amended to reflect that 
     fact.

     Since the question of rent has hitherto  been  considered  solely  an  the
     basis of rent control rather then  stabilization,  the  matter  should  be
     remanded  for  the  establishment  of  proper  stabilized  rents  by   the
     Administrator on notice to all parties.

     An interim rent of $158.73 per month (the last lease rent actually paid by 
     the tenants) is established as of the first rent  payment  date  occurring
     after the date of issuance hereof.  All arrears or overcharges are  stayed
     until a  new  order  is  issued  on  remand.   The  Administrator  may  if
     necessary, permit the installment payment of any arrears.

     THEREFORE, pursuant to the Rent Stabilization Law and Code  and  the  Rent
     and Eviction Regulations for New York City, it is  
     ORDERED, that this proceeding be, and the same hereby is,  reopened;  that
     the  Commissioner's  prior  order  of  November  30,  1989  and  the  Rent
     Administrator's order of October 21, 1988 be, and  the  same  hereby  are,
     revoked; that the petition be, and the same hereby is,  denied;  and  that
     the proceeding, and the same hereby is, remanded to the Rent Administrator 






          DOCKET NUMBER: SJR 4736; CK 120078-RT (SJR 4337)
     for further processing in accord herewith.

     ISSUED:











                                                                   
                                             ELLIOT SANDER
                                          Deputy Commissioner




                                                   
    

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