DOCKET NO.:  CF 230213-RO
                                            STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK  11433

      APPEAL OF                                 DOCKET NO. CF 230213-RO
                                            :   DISTRICT RENT ADMINISTRATOR'S
              J. C. MANAGEMENT CO.,             DOCKET NO. ZKC 852503-FR 
                             PETITIONER     :                


      On June 23, 1988, the above-named petitioner-landlord filed an 
      administrative appeal in accordance with the applicable provisions of the 
      City Rent Law and Regulations against an order issued on June 10, 1988 by 
      the Rent Administrator of the Rent Office, concerning the housing 
      accommodations known as 864 48th Street, various apartments, Brooklyn, NY.

      The issue in this proceeding is whether Fuel Cost Adjustments should have 
      been suspended for the calendar year 1985.

      The Rent Administrator's order appealed herein, suspended all fuel cost 
      adjustments for the period January 1, 1985 - December 31, 1985.

      This order was based on a finding that the landlord of the subject building 
      had previously obtained allowable fuel cost adjustments and failed to timely 
      file in 1985 the required report of fuel cost decrease by reason of a 
      decrease in the price of #6 oil during the calendar year 1984.

      On appeal, the landlord alleges, in substance, that contrary to the 
      Administrator's findings it had filed the report of fuel cost decrease on a 
      timely basis.

      After a careful consideration of the entire evidence of record, the 
      Commissioner is of the opinion that the appeal should be granted.

      Under the provisions of 9 NYCRR  2202.13e, where a landlord has obtained 
      fuel cost adjustments and then there is a finding of fuel price decrease, 
      within 60 days of the promulgation of the finding on fuel price, the 
      landlord must serve and file a report of fuel price decrease.

      In early 1985 a finding was promulgated that the price of #6 fuel oil had 
      decline during 1984.  The subject landlord was required to file and serve 
      fuel cost decrease reports on or before May 15, 1985.

      The record reveals that the required reports were filed with the Rent Office 
      on May 14, 1985.  The Commissioner is of the opinion that this record 
      constitutes substantial compliance with the requirements of 9 NYCRR 
      2202.13e, as the tenants, the intended beneficiaries of this provision of 

          DOCKET NO.:  CF 230213-RO

      the Regulations, received adequate notice of the decrease in the monthly 
      collectible fuel cost adjustment.  Therefore, the Commissioner finds that 
      the fuel cost adjustments should not have been suspended for the calendar 
      year 1983.

      THEREFORE, in accordance with the applicable provisions of the Rent and 
      Eviction Regulations for New York City, it is 

      ORDERED, that the landlord's appeal be, and the same hereby is, granted; 
      that the Rent Administrator's order be, and the same hereby is, revoked; and 
      that the monthly cumulative fuel cost adjustment for the subject building as 
      of January 1, 1985 is reinstated in the amount of $3.21 per room, per month, 
      and it is further ordered that the tenants may pay any arrears in rent 
      arising as a result of this order in twelve (12) equal monthly payments.


                                                      JOSEPH A. D'AGOSTA
                                                  Acting Deputy Commissioner

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