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

          APPEAL OF                              DOCKET NO. DL410231RO
                                              :  DRO DOCKET NO. ZTA012274
               EMBASSY ENTERPRISES               TENANT: DONNA CLARK/NANCY    

                                PETITIONER    : 

               On December 22, 1989 the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          December 5, 1989, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York,  concerning the housing accommodations 
          known as 1394 York Avenue, New York, New York, Apartment No. 3D, 
          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 filed 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 

               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 by the filing in 
          November , 1983 of a  fair market rent adjustment application by the 
          tenants.  In such complaint, the tenants stated in substance that 
          they first moved to the subject apartment in September, 1983 at a 
          rental of $1350.00 per month.  During the course of the proceeding 
          before the Rent Administrator, the tenants vacated the subject 
          apartment but left a forwarding address.



               In response to the tenants' complaint, and a DHCR notice 
          affording the opportunity to submit comparable apartments, the owner 
          cited the subject "D" line in the subject premises as well as other 
          apartment rents in September 1983 in neighboring buildings, but 
          failed to provide the dates of decontrol and required documentation 
          for the consideration of either June 30, 1974 or updated 

               In Order Number ZTA012274, the Rent Administrator adjusted the 
          initial legal regulated rent by establishing a fair market rent of 
          $607.33 (excluding comparability) effective September 1, 1983, and 
          directed the owner to refund excess rent of $28,005.36 to the 

               In this petition, the owner contends in substance that pursuant 
          to the decision in JRD v Eimicke, 148A.D. 2d 610, 539 N.Y.S. 2d 667 
          (App. Div. 2d Dept, 1989), an owner is not required to maintain rent 
          records for more than four years so that it should not have been 
          asked to submit comparability data more than four years old and that 
          it should have been afforded the opportunity to submit comparability 
          data in accordance with the new Rent Stabilization Code provisions 
          instead of comparability data as formulated when the old Rent 
          Stabilization Code was in effect.

               In answer to the owner's petition, the tenants stated in 
          substance that  the Rent Administrator's order was warranted.

               The Commissioner is of the opinion that this petition should be 

               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 guidelines 
          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 lines 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 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.

               In the instant case, the owner failed to submit usable 
          comparability data under either of the two alternatives described 
          above although afforded an opportunity to do so.  It is noted that 
          the comparability provisions of the new Rent Stabilization Code 
          cited by the owner in its petition are not applicable to the instant 
          proceeding where the fair market rent adjustment application was 
          filed prior to April 1, 1984.

               Further, the Commissioner is of the opinion that the JRD case 
          is not applicable in this proceeding.  The change effected by 
          Section 14(g) of the Omnibus Housing Act and Section 26-516(g) of 
          the Rent Stabilization Law, as applied in the JRD case, only 
          involves rent overcharge proceedings, and does not apply to fair 
          market rent appeals.  Section 26-513 of the Rent Stabilization Law, 
          which deals with fair market rent appeals, continues to provide for 
          determination of the fair market rent from the date of the initial 
          stabilized tenancy.  Additionally, the Commissioner notes that the 
          JRD case is applicable in the Second Department only.  This 
          proceeding is in the First Department where the case of Lavanant v. 
          DHCR, 148 A.D. 2d 185, 544 N.Y.S. 2d 331 (App. Div. 1st Dept. 1989) 
          is the determinative authority.  Finally, the owner was not required 
          to submit comparability more than four years old but had the option 
          to do so.  Accordingly, the Rent Administrator's order was 

               The owner is directed to reflect the findings and 
          determinations made in this order on all future registration 
          statements, including those for the current year if not already 
          filed, citing this order as the basis for the change.  Registration 
          statements already on file, however, should not be amended to 
          reflect the findings and determinations made in this order.  The 
          owner is further directed to adjust subsequent rents to an amount no 
          greater than that determined by this order plus any lawful 

               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 tenants herein may seek to enforce this order by filing 
          an appropriate action in a court of competent jurisdiction.  A copy 
          of this order is being sent to the tenant currently in occupancy at 
          the subject apartment.

               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.


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner



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