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

          APPEAL OF                              DOCKET NO. DJ210406RO
                                              :  DRO DOCKET NO.059174
               BEACH HAVEN APTS. #1 INC.         TENANT: S. & V. BURCH

                                PETITIONER    : 

               On October 4, 1989, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          September 29, 1989, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 400 Argyle Road, Brooklyn, New York, Apartment No. LJ3, 
          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 commenced on November 30, 1985 by the 
          tenants' filing of an objection to rent in which they stated in 
          substance that the April 1, 1984 rent was registered at $449.23, but 
          that they were currently paying $476.18 in rent.

               The owner did not file an answer to this objection although 
          afforded an opportunity to do so.  

               In Order Number 059174, the Rent Administrator determined that, 
          due to the owner's failure to submit a complete rental history from 
          April 1, 1980, the tenant had been overcharged in the amount of 
          $7,434.73 from May 1, 1984 through April 30, 1986, including treble 
          damages and excess security.

               In this petition, the owner alleges in substance that the Rent 
          Administrator improperly failed to consider prior docket K3102992R 
          wherein the same tenants had filed a rent overcharge complaint.  In 
          such earlier docket, the owner had submitted a complete rental 
          history and the Rent Administrator, based thereon, had issued an 
          order on May 14, 1986, finding that no rent overcharge had occurred.  
          The owner further urges that pursuant to the decision in the earlier 


          order, the matter was now res judicata and could not be relitigated 
          in the docket under appeal herein.

               In answer to the petition, the tenants stated in substance that 
          the Rent Administrator's order finding a rent overcharge was 

               The Commissioner is of the opinion that this petition should be 

               An examination of the records in this case discloses that the 
          owner is correct in its contention that the Rent Administrator had 
          issued an earlier order under docket number K3102992R finding no 
          rent overcharge on the basis of a complete rental history submitted 
          by the owner.  Such earlier order found the lawful stabilization 
          rent to be $449.23 effective September 1, 1983 up to April 30, 1985 
          (the end of the lease term).  The earlier order was not appealed by 
          the tenants and is res judicata regarding the rent through April 30, 
          1985.  In the complaint herein, the tenants were basically 
          questioning why the rent was increased from $449.23 to $476.18 
          effective May 1, 1985.  The answer is because of the one year 
          renewal lease effective May 1, 1985 whereby the owner was entitled 
          to a 6% guideline increase over the $449.23 rent making the rent 
          $476.18 pursuant to Guideline 16.  Accordingly, no rent overcharge 
          occurred and the Rent Administrator's order to that effect must be 
          revoked in its entirety.

               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 tenants are permitted to pay off the 
          arrears in 24 equal monthly installments.  Should the tenants vacate 
          after the issuance of this order or have already vacated, said 
          arrears shall be payable immediately.

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

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, granted, and, that the order of the Rent 
          Administrator be, and the same hereby is, revoked, and it is found 
          that no rent overcharge occurred.


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




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