ADM. REVIEW DOCKET NO. CE620226RO

                                  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. CE620226RO 

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO. BG620455R 
                                GJERGJ GJONI,
                                   PETITIONER
          ------------------------------------X

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

               On May 3, 1988, the above-named landlord filed a petition for 
          administrative review of an order issued on April 21, 1988 by the 
          Rent Administrator concerning the housing accommodation known as 
          Apartment 4H, 2144 Bronx Park East, Bronx, New York.

               The Commissioner has reviewed all of the evidence in the 
          record and has carefully considered that portion of the record 
          relevant to the issues raised in the petition for administrative 
          review.

               The subject tenant filed an overcharge complaint with the rent 
          agency, dated June 26, 1987.

               On October 7, 1987, the subject landlord submitted to the 
          Administrator a copy of a "Certified Report of Restructured Rent 
          and Order Increasing Maximum Collectible Rent" issued on March 25, 
          1987 under Docket NO. AG620001RR.  The above-mentioned order 
          established that the restructured rent (new maximum rent) for the 
          subject apartment should be $236.36 per month effective June 1, 
          1986 pursuant to former Section 33.9 of the Rent and Eviction 
          Regulations (now Section 2202.12 of the City Rent and Eviction 
          Regulations).

               In the Administrator's order under review herein, it was noted 
          that the subject apartment's maximum rent effective June 1, 1986 
          should be $236.36 per month pursuant to Docket No. AG620001RR, and 
          that the subject apartment's maximum rent effective January 1, 1987 
          should be $254.09 per month.  In addition, the Administrator's 
          order under review herein stated that:















          ADM. REVIEW DOCKET NO. CE620226RO

                    Any appropriate retroactive increase 
                    in rent pursuant to this order may 
                    be paid in installments equal to the
                    number of months between the effective
                    date of this order and the tenant's 
                    next rent payment date.  The tenant
                    may elect to pay the entire 
                    retroactive amount in a lump sum.

               In the landlord's petition he asserts, among other things, 
          that the subject apartment's maximum rent should be $260.74 per 
          month and not $254.09 per month; that the aforementioned 
          restructured rent order increased the rent by $19.93 per room, and 
          that the subject apartment has four rooms; that based on the 
          restructured rent order the rent should have been increased by 
          $79.72 per month ($19.93 X 4), and that adding $79.72 to the rent 
          equals $260.74.

               After careful consideration, the Commissioner finds that the 
          landlord's petition should be denied.

               The Commissioner notes that the Administrator issued an order 
          restructuring the subject apartment's rent issued on March 25, 1987 
          under Docket No. AG620001RR which established the subject 
          apartment's maximum rent at $236.36 per month, and it increased the 
          subject apartment's maximum base rent (M.B.R.) by $19.93 per room, 
          per month.  The above-mentioned order was effective on June 1, 
          1986.

               The Commissioner finds that in the order under review herein 
          the Administrator properly noted that the subject apartment's 
          maximum rent should be $236.36 per month effective June 1, 1986, 
          pursuant to the aforementioned restructured rent order.

               On June 29, 1988, the Administrator issued an order under 
          Docket No. 7M00473BX (7MI00473BX) which granted the landlord M.B.R. 
          increases for the 1986-1987 period effective January 1,1986.

               As the aforementioned restructured rent order established that 
          the maximum rent effective June 1,1986 should be $236.36 per month, 
          the Commissioner finds that the maximum rent effective January 
          1,1987 should be calculated by increasing $236.36 by 7.5%, pursuant 
          to the above-mentioned 1986-1987 M.B.R. order of eligibility.

               The Commissioner finds that in the order under review herein 
          the Administrator properly noted that the subject apartment's 
          maximum rent should be $254.09 per month effective January 1,1987 
          ($236.36 X 7.5%).


               The Commissioner points out that the aforementioned 
          restructured rent order increased the M.B.R., and not the maximum 






          ADM. REVIEW DOCKET NO. CE620226RO

          rent, by $19.93 per room, per month.  The M.B.R. is the economic 
          rent of an apartment, and the maximum rent is the rent the landlord 
          is legally entitled to collect from the rent controlled tenant.

               Accordingly, the Commissioner finds that the landlord's 
          assertion that he is entitled to collect a rent increase of $19.93 
          per room, per month is not correct.

               The Commissioner points out that the Administrator's order 
          under review herein does not include fuel cost adjustments the 
          subject landlord may be entitled to collect, and that the 
          Administrator's order under review herein does not include M.B.R. 
          orders of eligibility or orders adjusting the maximum rent issued 
          after January 1, 1987.

               THEREFORE, in accordance with the City Rent and Rehabilitation 
          Law and the Rent and Eviction Regulations, it is

               ORDERED, that this petition be, and the same hereby is, 
          denied, and that the Administrator's order be, and the same hereby 
          is, affirmed.

          ISSUED:





                                                                             
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner 






    

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