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

          APPEAL OF                               DOCKET NO.: DC230097RO

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO.: AK220107FR
             JORALEMON ARMS CO.


               On March 6, 1989 the above named petitioner-landlord filed an 
          appeal in accordance with the applicable provisions of the City 
          Rent Law and Regulations against an order issued on February 8, 
          1989 by the Rent Administrator of the Gertz Plaza, Jamaica, N.Y., 
          concerning the housing accommodation known as 131 Joralemon Street, 
          Various Apts., Brooklyn, New York.

               The issue in this proceeding is whether Fuel Cost Adjustments 
          should have been suspended for the calendar year 1986.

               The Rent Administrator's order appealed herein suspended all 
          fuel cost adjustments for the period January 1, 1986 through 
          December 31, 1986.

               This order was based upon a finding that the owner of the 
          subject building had previously obtained allowable fuel cost 
          adjustments and failed to timely serve and file the required report 
          of fuel cost decrease by reason of a decrease in the price of #6 
          oil during the calendar year 1985.

               On appeal, the landlord states, in substance, that when the 
          first forms for Fuel Passalong for 1986 came out, the landlord was 
          told by the DHCR that these forms had been printed incorrectly.  It 
          allegedly was told by the DHCR that new forms were to be issued and 
          that all owners had been given an extension to file the 1986 forms 
          by September 2, 1986 no matter what type of fuel was being used.

          ADM. APPEAL DOCKET NO.: DC230097RO

               9 NYCRR 2202.13 provides that where a landlord has obtained 
          fuel cost adjustments and then there is a finding of fuel price 
          decrease, within 60 days of the promulgation of the finding on fuel 
          prices, the landlord must serve and file a report of fuel price 

               In early 1986, a finding was promulgated that the price of #6 
          fuel oil had declined during 1985.  The subject landlord was 
          required to file and serve fuel cost decrease reports on or before 
          May 14, 1986.

               The Commissioner notes the fact that in 1986 a Special Notice 
          was issued informing owners that the fuel price changes in 1985 
          were previously incorrectly stated for six specified fuels, not 
          including #6 oil and the correct price changes were stated in the 
          Special Notice.

               Furthermore, the Notice stated that for owners who used fuels 
          not specified on the notice no extension time was granted.  In 
          addition, even if there was no increase or decrease in the cost of 
          fuel used by the owner, the owners were nevertheless told to file.  
          The owner's allegation that it was mislead is not credible.  It 
          seems most probable that the owner misunderstood the information 

               A review of the record reveals that a "Landlord's Report, 
          Certification and Notice of Fuel Cost Adjustment Eligibility-1986" 
          was not received by the Rent Office until August 29, 1986.

               Accordingly, the Commissioner is of the opinion the Rent 
          Administrator correctly suspended Fuel Cost Adjustments for the 
          calendar year 1986.

               THEREFORE, in accordance with the applicable provisions of the 
          Rent and Eviction Regulations for New York City, it is 

               ORDERED, that this administrative appeal 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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