DJ 510260 RO
                                  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.: DJ 510260 RO

            JOEL ARAGONA/WADSWORTH REALTY,
                                                  DRO DOCKET NO.: ZU 3124390 R
                                                  TENANT:  DECELINA SANTIAGO
                                  PETITIONER
          ----------------------------------X                                   


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          On October 17, 1989, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          September 13, 1989 by the Rent Administrator, 92-31 Union Hall 
          Street Jamaica, New York, concerning the housing accommodations 
          known as 11 Wadsworth Avenue, New York, New York, Apartment No. 1A 
          wherein the Rent Administrator determined the fair market rent 
          pursuant to the special fair market rent guideline promulgated by 
          the New York City Rent Guidelines Board for use in calculating fair 
          market rent appeals.

          The Commissioner notes that this proceeding was initiated prior to 
          April 1, 1984.  Sections 2526.1(a)(4) and 2521.1(d) of the Rent 
          Stabilization Code (effective May 1, 1987) governing rent 
          overcharge and fair market rent proceedings provide that 
          determination of these matters be based upon the law or code 
          provisions in effect on March 31, 1984.  Therefore, unless 
          otherwise indicated, reference to Sections of the Rent 
          Stabilization Code (Code) contained herein are to the Code in 
          effect on April 30, 1987.

          The Administrative Appeal is being determined pursuant to the 
          provisions of Section 26-513 of the Rent Stabilization Law.

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

          The Commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issues raised by the administrative appeal.
          This proceeding was originally commenced in March 1984 by the 
          filing of a rent overcharge complaint converted to a fair market 












          DJ 510260 RO

          rent adjustment application by the First Rent Stabilized tenant who 
          took occupancy of the subject apartment on June 6, 1981 at a rental 
          of $350.00 per month.

          The owner and prior owner were served with a copy of the tenant's 
          application and afforded an opportunity to submit June 30, 1974 or 
          post June 30, 1974 comparability data for determining the fair 
          market rent of the subject apartment and to submit proof of any 
          improvements made in the subject apartment.

          Neither the current or prior owner submitted a response to notices 
          sent November 29, 1984, May 28, 1986, May 25, 1989 and June 16, 
          1989 affording the owners the opportunity to submit comparability 
          data.  Nor did either owner interpose a response to a Summary 
          Notice dated July 17, 1989 and an amended Summary Notice dated 
          August 15, 1989 which indicated how the fair market rent would be 
          established and which indicated that comparability was not a factor 
          in the determination.

          In Order Number ZU 3124390 R, the Rent Administrator adjusted the 
          initial legal regulated rent by establishing a fair market rent of 
          $237.35 using the Special Fair Market Guidelines only.

          In this petition, the owner contends in substance that the Rent 
          Administrator failed to consider comparability submitted and that 
          the excessive security is erroneous because the security deposit 
          held is only $350.00.  The owner failed to include a copy of such 
          a comparability submission or proof that it was served below.

          In answer to the owner's petition, the tenant stated in substance 
          that no comparability data was submitted so she can't respond to 
          it.

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

          Section 26-513 of the Rent Stabilization Law provides, in pertinent 
          part, that fair market rent adjustment applications are to be 
          determined by the use of special fair market rent Guideline orders 
          promulgated by the New York City Rent Guidelines Board and by the 
          rents generally prevailing in the same area for substantially 
          similar housing accommodations.  In order to determine rents 
          generally prevailing in the same area for substantially similar 
          housing accommodations, it is DHCR's procedure for fair market rent 
          appeal cases filed prior to April 1, 1984 to allow owners to submit 
          June 30, 1974 fair market rental data for complete line of 
          apartments, beginning with the subject line.  The average of such 
          comparable rentals will then be updated by annual guidelines 
          increases.  Alternatively, DHCR procedure allows owners to have 
          comparability determined on the basis of rents charged after June 
          30, 1974.  In order to use this method, owners were required prior 
          to November 1, 1984 to submit rental history data for all 






          DJ 510260 RO

          stabilized apartments in the subject premises and subsequent to 
          November 1, 1984 to submit such data for complete lines of 
          apartments beginning with the subject line.  Post June 30, 1974 
          rent data will be utilized if the comparable apartment was rented 
          to a first stabilized tenant within one year of the renting of the 
          subject apartment and if the owner submits proof of service of a 
          DC-2 Notice or apartment registration form indicating that the rent 
          is not subject to challenge.

          An examination of the record in this case discloses that no 
          comparability submission was included in the file; numerous 
          opportunities to submit comparability were afforded the owners; the 
          notices sent to the current owner were addressed to the address as 
          shown in both the registrations on file with DHCR and in the 
          owner's petition; the owner has failed to include in its petition 
          either a copy of the alleged comparability submission nor proof 
          that such a submission was served on the Rent Administrator; 
          neither has the owner submitted proof that only $350.00 was held as 
          a security deposit, either below or on appeal.

          Accordingly, the Rent Administrator's order was warranted.

          Because this determination concerns lawful rents only through 
          September 30, 1989, the owner is cautioned to adjust subsequent 
          rents to an amount no greater than that determined by the Rent 
          Administrator's order plus any lawful increases, and to register 
          any adjusted rents with this order and opinion being given as the 
          explanation for the adjustment.

          If the owner does not take appropriate action to comply with this 
          order within sixty days from the date of issuance of this order, 
          the tenant may credit the excess rent against the next month(s) 
          rent until fully offset.

          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, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is, affirmed.

          ISSUED:

                                                  ------------------------
                                                  JOSEPH A. D'AGOSTA
                                                  Acting Deputy Commissioner
           
             
                                             






    

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