Docket No. DC230217RO
                                    STATE OF NEW YORK 
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK  11433

          APPEAL OF                               DOCKET NO.: DC230217RO  

                                                  DISTRICT RENT             
          Kathryn Moran                           ADMINISTRATOR'S DOCKET
                                                  NO.: AK220094FR


              On March 16, 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 10, 
          1989 by the Rent Administrator of the Gertz Plaza, Jamaica, New 
          York, concerning the housing accommodation known as 1489 East 8th 
          Street, Apartments. A4, B2, and B3, 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 Brooklyn 
          Union "Non-Interruptible" Gas during the calendar year 1985.

              On appeal, the landlord states, in substance, that she had not 
          received any prior notification for the 1986 fuel report, and 
          admits the fuel report was filed on July 14, 1986.  As of August 1, 
          1986 the rent reflected the reduced amount for fuel and the tenants 
          were credited with the full retroactive decrease back to January 1, 
          1986.  Therefore, the landlord contends the suspension for a year 
          is too harsh a penalty.

              After a careful consideration of the entire evidence of record 
          the Commissioner is of the opinion that the administrative appeal 

          Docket No. DC230217RO

          should be denied.

              9NYCRR 2202.13e 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 
          Brooklyn Union "Non-Interruptible" Gas had declined during 1985.  
          The subject landlord was required to file and serve fuel cost 
          decrease reports on or before May 14, 1986.

              A review of the record reveals that a "Landlords' Report, 
          Certification and Notice of Fuel Cost Adjustment Eligibility-1986" 
          was not received by the Rent Office until July 28, 1986.

              [The Commissioner notes that the Fuel Cost Adjustment figures 
          for the previous year are available from the Division each March.  
          The Division does not individually inform each owner.  The figures 
          are also published in the City Record.]

              Accordingly, the Commissioner is of the opinion the Rent 
          Administrator correctly suspended Fuel Cost Adjustments for the 
          calendar year 1986.  The allegation that the suspension is too 
          harsh a penalty is insufficient to reverse or modify the 
          Administrator's order.  The suspension is not discretionary.

              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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