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

          APPEAL OF                              DOCKET NO.CD210142RO
                                              :  DRO DOCKET NO.049245


                                PETITIONER    : 

               On April 20, 1988, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on March 
          29, 1988, by the Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          822 Ocean Avenue, Brooklyn,  New York, Apartment No.6H wherein the 
          Administrator determined that the owner had collected an overcharge. 

               The Administrative Appeal is being determined pursuant to the 
          provisions of  Section 2522.3 of the Rent Stabilization Code.

               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.  

               The tenant commenced this proceeding  in April 1984 by filing 
          a rent overcharge complaint.

               In answer to the complaint, the owner stated that the subject 
          apartment had been decontrolled in 1976,  that the rent charged at 
          that time was the fair market rent arrived at by using the special 
          guideline increase and averaging the amount with the average rent of 
          stabilized apartments in the same line.

                In the order here under review, the Administrator established 
          the initial legal regulated rent at $168.95 effective February 1, 
          1977 and directed the owner to refund excess rent of $2600.88 
          including excess security.

               In its appeal, the owner contends that the order is incorrect 
          and should be reversed because the initial rent charged upon 
          decontrol was less than could have been charged, using the special 
          guideline alone.  Since all increases were according to the 
          guidelines, there was no further overcharge.


               Although afforded the opportunity to do so, the tenant did not 
          reply to the petition.

               The Commissioner is of the opinion that this petition should be 

               Review of DHCR records discloses that the 1976/77 Maximum Base 
          Rent (MBR) was $233.37.  Special guidelines #8, in effect at the 
          time the subject apartment was rented to  the first stabilized 
          tenant in February 1977, permitted a rent increase of 15% above the 
          1976 MBR.  Applying the permitted percentage yields a rent equal to 
          $268.38.  The evidence of record indicates that the first stabilized 
          rent was $200.00, well within the permissible rent to be charged.  
          Accordingly, the Commissioner finds that the Rent Administrator 
          erred and that there was no excess rent owed to the tenant.

               If the owner has already complied with the Rent Administrator's  
          order and there are arrears due to the owner as a result of the 
          instant determination, the tenant is permitted to pay off the 
          arrears in 24 equal monthly installments.  Should the tenant vacate 
          after the issuance of this order or have already vacated, said 
          arrears shall be payable immediately.

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

               Ordered, that this petition be, and the same hereby  is, 
          granted and that the order of the Rent Administrator be, and the 
          same hereby is, revoked.


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner

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