CK210114RO

                                  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.CK210114RO
                                              :  DRO DOCKET NO.43958
               111 REALTY ASSOCIATES             TENANT: MERLE & BANKS

                                PETITIONER    : 
          ------------------------------------X                             
           ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN 
          PART


               On November 7, 1988, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          October 4, 1988, by the Rent Administrator, 10 Columbus Circle. New 
          York, New York, concerning the housing accommodations known as 111 
          East 21st Street, New York, New York, Apartment No. F1 wherein the 
          Rent Administrator determined that the owner had overcharged the 
          tenants.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 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 of a 
          tenant's objection to rent by the tenants herein in September, 1984.  
          The tenants alleged, inter alia, that they were being overcharged.  
          In response to the tenants' objection, the owner submitted a rental 
          history and advised that the tenants had vacated the subject 
          apartment.

               In Order Number 43958, the Rent Administrator determined that 
          the tenants had been overcharged in the amount of $1707.41 from 
          September 16, 1982 through September 30, 1984, including interest on 
          the overcharge occurring on and after April 1, 1984, and directed 
          the owner to refund such overcharge to the tenants.

               In this petition, the owner alleges in substance that no 
          overcharge occurred in that the Rent Administrator failed to credit 
          it with two vacancy allowances pursuant to Guidelines 13 to which it 
          was entitled.

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









          CK210114RO




               An examination of the record discloses that the owner is 
          correct in its contention that the Rent Administrator failed to 
          credit it with the two vacancy allowances of 15% each pursuant to 
          Guidelines 13 to which it was entitled.  It is noted that the two 
          vacancies occurred on October 1, 1981 and September 16, 1982 
          respectively - more than three months apart - so that the owner was 
          in fact entitled to the two vacancy allowances.  Taking this factor 
          into account, the Commissioner has recalculated the lawful 
          stabilization rents and the amount of the rent overcharge including 
          interest on the overcharge occurring on and after April 1, 1984 but 
          not excess security since the tenants have vacated.  The 
          recalculation is as follows:  Lawful stabilization rent as of 
          September 16, 1982 including the two vacancy allowances - $490.00; 
          lawful stabilization rent as of October 1, 1983 - $509.60; total 
          overcharge through September 30, 1982 - $318.13.

               The owner is directed to reflect the findings and 
          determinations made in this order on all future registration 
          statements, including those for the current year if not already 
          filed, citing this order as the basis for the change.  Registration 
          statements already on file, however, should not be amended to 
          reflect the findings and determinations made in this order.  The 
          owner is further directed to adjust subsequent rents to an amount no 
          greater than that determined by this order plus any lawful 
          increases.  A copy of this order is being sent to the current 
          occupant of the subject apartment.

               The Commissioner has determined in this Order and Opinion that 
          the owner collected overcharges of $318.13.  This Order may, upon 
          expiration of the period for seeking review of this Order and 
          Opinion pursuant to Article Seventy-eight of the Civil Practice Law 
          and Rules, be filed and enforced as a judgment.  Where the tenant 
          files this Order as a judgment, the County Clerk may add to the 
          overcharge, interest at the rate payable on a judgment pursuant to 
          Section 5004 of the Civil Practice Law and Rules from the issuance 
          date of the Rent Administrator's Order to the issuance date of the 
          Commissioner's Order.

               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, 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.  The lawful stabilization rent as of 
          September 30, 1984 is $509.60.

          ISSUED
                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner



                     


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