CK 410021 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 S.J.R. 4551
          IN THE MATTER OF THE ADMINISTRATIVE  ADMINISTRATIVE REVIEW
          APPEAL OF                            DOCKET NO.: CK 410021 RO 
                                                           
               Sutton Realty Company,          DISTRICT RENT ADMINISTRATOR
                                               DOCKET NO.: AE 410232 R
           
                                   PETITIONER               
          -----------------------------------X

            ORDER AND OPINION GRANTING ADMINISTRATIVE APPEAL, IN PART AND
                  MODIFYING COMMISSIONER'S PRIOR ORDER AND OPINION
                             PURSUANT TO COURT JUDGMENT

          On November 3, 1988 the  above-named  petitioner-owner  filed  an
          Administrative Appeal against an order issued  on  September  29,
          1988 by the District Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          320 East 52nd Street, New York, New York, Apartment 9A.

          Subsequent thereto,  the  petitioner  filed  a  petition  in  the
          Supreme Court pursuant to Article 78 of the  Civil  Practice  Law
          and  Rules  requesting  that   the   "deemed   denial"   of   its
          administrative appeal be annulled.

          On July 17, 1989, an order was signed by Justice Leland  DeGrasse
          remitting the proceeding  to  the  Division  for  an  expeditious
          determination of the petitioner's administrative appeal.

          On September 14, 1989,  the  Commissioner  issued  an  order  and
          opinion  denying  the  petitioner's  administrative  appeal   and
          affirming   the   District   Rent   Administrator's   order   and
          determination that the  tenant  had  been  overcharged  a  total,
          including excess security  and  accrued  interest,  of  $6,353.48
          during the period from March 15, 1986 through September 30, 1988.

          Subsequent thereto,  the  petitioner  filed  a  petition  in  the
          Supreme Court pursuant to Article 78 of the  Civil  Practice  Law
          and  Rules  requesting  that  the  order  and  opinion   of   the
          Commissioner be annulled in view of the fact that the tenant  had
          vacated  the  subject  apartment  and  had  not  paid  any   rent
          subsequent to January, 1987.  Such contentions  were  raised  for
          the  first  time  in  the  administrative  proceedings   in   the
          petitioner's administrative appeal.

          On April 24, 1990, an order and judgment was  signed  by  Justice
          Irma V. Santaella denying the petitioner's  Article  78  petition
          and dismissing the proceeding based, in part, upon a finding that 
          the petitioner's contentions improperly were based, at  least  in
          part,  on  matters  not   raised   before   the   District   Rent
          Administrator, and upon information not in the record before  the
          District Rent  Administrator.   The  petitioner  took  an  appeal
          against the order and judgment of Justice Santaella.  






          CK 410021 RO

          By a decision and order entered on June 18, 1991,  the  Appellate
          Division reversed Justice  Santaella's  order  and  judgment  and
          granted the petitioner's petition to the extent of remanding  the
          proceeding to the Division for recalculation  of  the  overcharge
          assessment in  light  of  the  fact  that  the  petitioner  never
          received any rent  from  the  tenant  after  January  1987.   The
          Appellate  Court  agreed  that  the  petitioner  had  failed   to
          demonstrate  that  the  Division's  calculation   of   the   rent
          overcharge per se was either arbitrary or capricious.

          In accordance  with  the  specific  directive  of  the  Appellate
          Division, the Commissioner is of the  opinion  that  the  owner's
          administrative  appeal  should  be  granted,  in  part,  and  the
          Commissioner's prior order and opinion  should  be  modified,  as
          provided herein below.

          The District Rent  Administrator  properly  determined  that  the
          lawful stabilization rent for the subject apartment  was  $919.88
          during the lease term from March 15, 1986 through March 31, 1986. 
          The rent charged under said lease was $1,100.00.  During the  ten
          and one-half month period from March 15, 1986 through January 31, 
          1987, the owner collected an overcharge of $1,891.26.

          Adding accrued  interest  of  $115.21  plus  excess  security  of
          $180.12 results in a total to be refunded of $2,186.59.

          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  as  a
          judgment.

          THEREFORE, in accordance with  the  decision  and  order  of  the
          Appellate Division and the provisions of the  Rent  Stabilization
          Law and Code, it is

          ORDERED, that this administrative appeal be, and the same  hereby
          is, granted in part, and that the prior order of the Commissioner 
          be, and the same hereby is, modified, to provide that  the  total
          overcharge to be refunded is $2,186.59.  The Commissioner's prior 
          order and opinion is hereby affirmed in all other respects.

          ISSUED:

           
                                                       JOSEPH A. D'AGOSTA
                                                       Deputy Commissioner




    

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