CD210151RO



                                  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.CD210151RO
                                              :  DRO DOCKET NO.K3103616R
          WEBSTER REALTY ASSOC.                  TENANT: ROBERTA GIBBS        
                      

                                PETITIONER    : 
          ------------------------------------X                             
             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

               On April 13, 1988, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on       
          March 9, 1988, by the Rent Administrator, 92-31 Union Hall Street, 
          Jamaica,, New York, concerning the housing accommodations known as  
          312 Webster Avenue,Brooklyn, New York, Apartment No. B-1
          wherein the Rent Administrator determined that the owner had 
          overcharged the tenant.
               
               The Commissioner notes that this proceeding was filed prior to 
          April 1, 1984.  Sections 2526.1 (a) (4)  and 2521.1 (d) of the Rent 
          Stabilization Code (effective May 1, 1987) governing rent overcharge 
          and fair market rent proceedings provide that determination of these 
          matters be based upon the law or code provisions in effect on March 
          31, 1984.  Therefore, unless otherwise indicated, reference to 
          Sections of the Rent Stabilization Code (Code) contained herein are 
          to the Code in effect on April 30, 1987.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 42A of the former 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 on March 
          23, 1984 of a rent overcharge complaint by the tenant.

               In response to the tenant's complaint, the owner stated in 
          substance that it had taken over the building in 1986 and that the 
          former owner had not provided any leases.  The owner  did not 
           submit a rental history.  

               In the order here under review, the Rent Administrator 
          determined that due to the owner's failure to submit a complete 
          rental history, the owner had collected a rent overcharge of
          $4,525.50 including excess security and interest  on that portion of 







          CD210151RO

          the overcharge occurring on and after April 1, 1984.

               In this petition, the owner contends in substance that
          the order is in error because the apartment used to compute the 
          legal rent contains only 3 rooms whereas the apartment at issue has 
          4 rooms, the owner does not understand the default procedure and the 
          owner is waiting for a copy of the MBR folder. 
               
               In answer to the owner's petition, the tenant stated in 
          substance that the order is correct.

               The Commissioner is of the opinion that this petition should be 
          denied.

               Section 42A of the former Rent Stabilization Code requires that 
          an owner retain complete records for each stabilized apartment in 
          effect from June 30, 1974 to date and produce them to the DHCR upon 
          demand.  If the apartment was decontrolled from the Rent Control Law 
          after June 30, 1974, the owner must provide satisfactory documentary 
          evidence of the apartment's date of decontrol and submit a rental 
          history from that date.

               In the instant case, the owner has not provided a complete 
          rental history as mandated by Section 42A. Accordingly, the Rent 
          Administrator's order establishing the lawful stabilization rent 
          utilizing the Section 42A default procedure and finding a rent 
          overcharge was warranted.  

               Where a rent history is not provided, the lawful stabilized 
          rent is established by selecting the lowest of three rents:  1) the 
          lowest stabilized for the same size apartment, 2) the complainant's 
          rent minus a guideline or 3) the rent paid by the prior tenant in 
          the subject apartment.  In the instant case, method number 2 
          provided the lowest amount which was computed in the following 
          manner: subtracting 17 1/2 % (12 1/2% plus 5% vacancy allowance) 
          from the complainant's rent of $195.00 yields  $165.96 which was 
          established as the legal rent for 1976. 

               The Commissioner has reviewed registration records which shows 
          that apartment A-1, the apartment used in the default procedure as 
          the lowest stabilized rent has the same number of rooms as the 
          instant apartment.  In any event, A-1's rent was not used to 
          establish the lawful stabilized rent of the subject apartment since 
          method 2 provided the lowest rent as explained above.

               The owner's comment with respect to the MBR folder is not 
          germane to this proceeding.

               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.



          CD210151RO

               The Commissioner has determined in this Order and Opinion that 
          the owner collected overcharges of $4,525.50 .  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 or not in exces of 
          twenty percent per month of the overcharge may be offset against any 
          rent thereafter due the owner.  Where the tenant credits the 
          overcharge, the tenant may add to the overcharge, or where the 
          tenant files this Order as a judgment, the County Clerk may add to 
          the overcharge, interest at the rate payable on ajudgment pursuant 
          to section 5004 of the Civil Practice Law and Rules from the 
          issuance date of th 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, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is, affirmed.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




                     
































          CD210151RO






    

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