DI 410152 RO

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

          APPEAL OF                              DOCKET NO.: DI 410152 RO

                LONDON TERRACE ASSOCIATES,       DRO DOCKET NO.:L 3111432 RT

                                                 TENANT:  CAPUTO AND ROSE

                                       IN PART

          On February 7,  1989, the above-named petitioner-owner timely 
          refiled a Petition for Administrative Review against an order 
          issued on February 4, 1988, by the Rent Administrator, Gertz Plaza, 
          Jamaica, New York, concerning the housing accommodations known as  
          410 West 24th Street, New York, New York Apartment No. 10J, wherein 
          the Rent Administrator determined that the owner had overcharged 
          the tenant.

          The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 of the Rent Stabilization Code.

          The issue herein is whether the Rent Administrator's order was 

          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 in March 1984 by the 
          filing of a rent overcharge complaint by the tenant.  In an answer 
          to the complaint, filed in October 1987, the owner submitted a 
          complete set of leases for the subject apartment.  In May 1986 the 
          owner had submitted a rental history for the subject apartment in 
          another proceeding (docket 026702 involving a tenant's objection to 
          the rent registration in which the tenant's fair market rent appeal 
          was dismissed) and such rental history included copies of bills and 
          cancelled checks for improvements made in the subject apartment 
          during a vacancy period in 1980 and a copy of a Division of Housing 
          and Community Renewal's (DHCR's) order granting a rent increase for 
          a Major Capital Improvement (MCI) rent increase in 1983.

          DI 410152 RO

          In Order Number CDR 32,575, the Rent Administrator determined that 
          the tenant had been overcharged in the amount of $399.80 and 
          directed the owner to refund such overcharge to the tenant.

          In this petition, the owner contends in substance that there is no 
          rent overcharge in that the Rent Administrator failed to consider 
          rent increases for the apartment improvements and the MCI in 
          calculating the rents of the subject apartment and also didn't 
          credit the owner with electrical inclusion allowances.

          The Commissioner is of the opinion that this petition should be 

          An examination of the records in this case and the proceeding under 
          docket 026702 which the Commissioner deems appropriate to consider 
          herein discloses that the owner is correct in its contention that 
          it was not credited with a rent increase for apartment improvements 
          - new refrigerator, new stove, new sink and new cabinets installed 
          in 1980 at a total cost of $761.89.  The owner was entitled to a 
          rent increase of $19.05 for such installation - 1/40th of the total 
          cost.  Further the owner was entitled to a rent increase of $5.11 
          under docket OM 4062 for a MCI or .67% of the June 1982 rent of 
          $762.00.  However, the owner incorrectly took a rent increase of 
          $5.75 (.67% of the August 15, 1982 rent of $858.80) so that a small 
          rent overcharge remains.  Further the record shows that electricity 
          is included in the rent of the subject apartment and that the owner 
          was not credited with electrical inclusion allowances to which it 
          was entitled.

          Taking the aforementioned factors into account, the Commissioner 
          has recalculated the lawful stabilization rents and the amount of 
          the rent overcharge.  The lawful stabilization rents and the amount 
          of the rent overcharge are set forth on the amended rent 
          calculation chart attached hereto and made a part hereof.

          If the owner has already complied with the Rent Administrator's 
          order and there are arrears due to the owner as a result of the 
          instant determination, the tenant is permitted to pay off the 
          arrears in 24 equal monthly installments.  Should the tenant vacate 
          after the issuance of this order or have already vacated, said 
          arrears shall be payable immediately.

          Because this determination concerns lawful rents only through the 
          date of September 30, 1987 used in the Administrator's Order being 
          appealed, the owner is cautioned to adjust subsequent rents to an 
          amount no greater than that determined by this order plus any 
          lawful increases and to register any adjusted rents with this Order 
          and Opinion being given as the explanation for the adjustment.

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

          DI 410152 RO

          ORDERED, that this petition for administrative review be, and the 
          same hereby is, granted in part, and that the order of the Rent 
          Administrator be, and the same hereby is, modified in accordance 
          with this Order and Opinion.  The amount of the rent overcharge 
          through September 30, 1987 is $40.79.


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner


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