DC110201RO
                                  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.DC110201RO
                   Subraj Associates          :    DRO DOCKET NO.ZAA100699R
           
                                                   TENANT: Julius Carter
                               PETITIONER     :
          ------------------------------------X

             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
                                          

          On March 9, 1989, the above-named petitioner-owner filed a petition 
          for Administrative Review against an order issued on February 16, 
          1989 by the Rent Administrator, 92-31 Union Hall Street, Jamaica, 
          New York concerning the  housing  accommodation  known  as  88-05
          Merrick Boulevard, apartment 9G, Jamaica, New  York  wherein  the
          Administrator denied the overcharge application.

          The Commissioner has examined all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issue raised in the administrative appeal.

          The tenant commenced this proceeding on January 24, 1986 by filing 
          an overcharge complaint based upon alleged decreases in service.

          In response, the owner submitted 1)  evidence  that  the  subject
          apartment was registered and 2)  leases  from  October  16,  1984
          through October 31, 1986.

          Since the evidence indicated that there was  no  overcharge,  the
          Administrator issued the order herein appealed which terminated the 
          proceeding.

          In its appeal, the owner contends that the order fails to take into 
          account all legally  permitted  increases,  including  a  vacancy
          allowance and should be modified to reflect such increases.

          In response, the tenant contends that the owner is not entitled to 
          any increases so long as there are outstanding service complaints.

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
















          DC110201RO

          Review of the record reveals that the  owner  failed  to  take  a
          vacancy increase when the tenant first took possession and failed 
          to provide for such vacancy allowance  in  the  tenant's  vacancy
          lease.  Therefore, the owner is regarded  as  having  waived  the
          increase.  Accordingly the Rent Administrator's order was warranted 
          and correctly listed the lawful stabilization rents of the subject 
          apartment. 

          With respect to the tenant's assertions as to decreases in service, 
          it is noted that the order is issued  without  prejudice  to  any
          complaint the tenant may file for a rent decrease  based  upon  a
          decrease in service.

          Because this order concerns rents only through October 31,  1986,
          the owner is directed to adjust all subsequent rents in conformance 
          with this order plus any lawful increases.

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

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



          ISSUED:




           
                                                    JOSEPH A. D'AGOSTA
                                                    Deputy Commissioner
    

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