DH 530372 RO; EH 530100 RO

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

                                                   SJR 6015 REMIT

          APPEALS OF                              DOCKET NOS.:
                                                  DH 530372 RO
                                                  EH 530100 RO

          2461 AMSTERDAM AVENUE                   RENT
                                                  ADMINISTRATOR'S DOCKET 
                                  PETITIONER      CE 530017 B
                                                  DH 530210 OR

                                   TO COURT ORDER
               The above entitled proceeding is before the Commissioner 
          pursuant to an order of remand issued on March 10, 1992 by the 
          Supreme Court, NY County (Sherman, J.).  

               The above named petitioner-owner filed Petitions for 
          Administrative Review against the above referenced orders of the 
          Rent Administrator.  On September 20, 1991, the Commissioner issued 
          an Order and Opinion granting in part the owner's petition for 
          review of the rent reduction order (CE 530017 B) by revoking the 
          rent reduction for all but two tenants for whom the reduction was 
          affirmed for the period from March 1, 1989 through November 30, 
          1989, the effective date of the rent restoration ordered in Docket 
          No. DH 530210 OR. The Commissioner also ruled that if any arrears 
          were due and payable to the owner as result of this determination, 
          the tenants could pay off any such arrears in twelve (12) equal 
          monthly installments.

               Nine tenants then proceeded to seek judicial review of the 
          Commissioner's order and opinion in the Supreme Court, New York 
          County pursuant to Article 78 of the Civil Practice Law and Rules.
          On March 10, 1992 an order was issued by the court (Sherman, J.) 
          which denied the tenants' application and dismissed the petition 
          except for an issue relating to the period of payback of rent 
          arrears ordered by the Commissioner.  This issue was remanded to 
          the Commissioner and is the sole subject of the instant order.

          DH 530372 RO; EH 530100 RO

               The Commissioner has reviewed the record, as well as the 
          statements of the parties submitted during the Article 78 
          proceeding, and carefully considered that portion relevant to the 
          issue for which the proceeding was remanded by the court.

               The tenants, in their Article 78 proceeding, advanced the 
          argument that the 12 month payback period for rent arrears should 
          not have been ordered without notice to them and an opportunity to 
          be heard on the issue of their individual ability to pay.  In their 
          brief filed with the court the tenants stated their position on the 
          question at issue.  It is the position of the tenants that the  
          Commissioner's order imposes a financial hardship on them as they 
          do not have the financial means to pay off the arrears in a twelve 
          month period.  The tenants argue that the Commissioner should order 
          a longer payback period and state that a period of thirty months 
          would be more equitable.

               At the outset, the Commissioner notes that prior agency and 
          judicial decisions have held that neither due process nor the rent 
          stabilization statutes require the holding of a hearing in a 
          situation such as this and the court did not order the agency to 
          conduct such a hearing.  It is also noted that the Commissioner's 
          September 20, 1991 order revoked the rent reduction for all but two 
          tenants.  There is no requirement in the Rent Stabilization Law and 
          Code for affording tenants any time to refund rent arrears when a 
          rent reduction is revoked.  Upon such revocation, the owner is 
          entitled to collect the full rent, unadjusted by the rent 

               However, in view of the Commissioner's prior directive to the 
          owner to permit the tenants to pay back arrears in twelve 
          installments, and the remand by the court to reconsider this aspect 
          of the order, the Commissioner deems it appropriate to again afford 
          the tenants a payback period.  Inasmuch as the tenants have now had 
          twelve months to pay arrears since the September 20, 1991 order was 
          issued, the directive to pay any remaining arrears in twelve months 
          commencing with the first rent payment date following issuance of 
          the order is reaffirmed, effectively affording the tenants more 
          than 24 months to make any necessary refunds.

          DH 530372 RO; EH 530100 RO

               THEREFORE, pursuant to the Rent Stabilization Law and Code it 

               ORDERED, that the owner's petition for administrative review 
          (DH 530372 RO) be, and the same hereby is, granted in part and that 
          administrative review proceeding (EH 530100 RO) be, and the same 
          hereby is, terminated.


                                             JOSEPH A. D'AGOSTA
                                             Acting Deputy Commissioner


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