EC 110339-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  SJR No. 5667
          IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
          APPEAL OF                              DOCKET NO. EC 110339-RO

                                              :  DISTRICT RENT OFFICE
               34th Avenue Holding Corp.,        DOCKET NO. 23844
                                                      
                                                 TENANT:   Kenneth    Barry
                                                            Rubin
                                   PETITIONER : 
          ------------------------------------X 

               ORDER AND OPINION MODIFYING COMMISSIONER'S PRIOR ORDER
                            AND OPINION AFTER COURT REMIT


          This  proceeding  was  originally  commenced  by  the  filing  by
          the  tenant  of  an  objection  to  the  apartment   registration
          including a  fair  market  rent  appeal  and  a  rent  overcharge
          complaint concerning housing accommodations known as Apartment 4N 
          at 88-11 34th Avenue, Jackson Heights, New York.

          By order issued on February  27,  1990,  the  Rent  Administrator
          determined that the subject building was decontrolled due to  new
          construction on May 21, 1951 and, based  thereon,  dismissed  the
          tenant's fair market  rent  appeal.   The  Administrator  further
          determined the lawful stabilized rent using the default procedure 
          based on the owner's failure to submit a complete rental  history
          and directed the owner to refund  overcharges,  including  treble
          damages on the overcharges occurring on or after April  1,  1984,
          in the amount of $40,816.48.

          The owner thereafter filed a petition for  administrative  review
          challenging  the  Administrator's  order.   By  order  issued  on
          February 8, 1991 the Commissioner found  that  the  Administrator
          properly  applied  the  default  procedure  where  DHCR   records
          indicated decontrol of the building as  of  1951  and  the  owner
          failed to submit rent records from April  1,  1980.   A  copy  of
          lease for the prior tenant marked "decontrolled" submitted by the 
          Owner was not accepted as proof of the base date.

          The Commissioner further found that  the  Administrator  properly
          imposed treble damages where the owner failed to make full refund 
          within the time to answer.

          The owner thereafter commenced  a  proceeding  in  Supreme  Court
          pursuant to Article 78  of  the  Civil  Practice  Law  and  Rules
          challenging the Commissioner's order.   By  judgment  (Index  No.
          6100/91) dated September 3,1991,  Justice  Angelo  Graci  ordered
          that the matter be remitted to the DHCR for the  limited  purpose
          of setting forth the basis for the rent reduction.   The  purpose
          of this modification  is  to  clarify  the  basis  for  the  rent
          reduction.






          EC 110339-RO

          In cases where the owner has not  produced  the  required  rental
          history, DHCR has adopted a  method  to  compute  an  apartment's
          legal regulated rent.  In accordance with the procedure  approved
          by the Court of Appeals in 61 Jane Street Associates v.  CAB,  65
          N.Y.2d 898, 493 N.Y.S.2d 455 (1985), such rent is computed at the 
          lowest  of  the  following  three  amounts:    (1)   The   lowest
          stabilized rent for the  same  sized  apartment  as  the  subject
          apartment   (as   indicated   on   the    Division's    apartment
          registration),   without   guidelines   adjustments    for    the
          complainant's vacancy lease or for any subsequent leases  of  the
          subject apartment which  commenced  prior  to  the  date  of  the
          Division's order.  Utilizing this method, the  lowest  stabilized
          rent was $177.19, for Apartment  No.  1N.   (2)  The  complaining
          tenant's initial rent minus  the  initial  guidelines  adjustment
          and vacancy allowance lawfully chargeable when  the  tenant  took
          occupancy, and also minus any credit for any  renewal  guidelines
          increases for a  lease  commencing  prior  to  the  date  of  the
          Division' order.  Utilizing this method, the complaining tenant's 
          vacancy rent of $345.00 less a 4% guidelines increase (no vacancy 
          allowance was given  pursuant  to  Rent  Guidelines  Board  Order
          Number 14) results in a lawful stabilized rent of  $331.20.   (3)
          The prior  tenant's  last  rent  is  unknown.   Accordingly,  the
          lawful stabilized rent  is  $177.19,  the  lowest  of  the  above
          amounts.  The rent is to be frozen at that amount from  the  date
          of the first  overcharge  until  the  date  of  issuance  of  the
          Administrator's  order,  pursuant   to   the   approved   default
          procedure.

          The Commissioner finds that the  Administrator's  application  of
          the  default  procedure  and  the   consequent   computation   of
          overcharge in the instant  case  was  proper  and  correct.   The
          Commissioner's prior order requires  only  clarification  of  the
          basis of the  overcharge  calculation,  in  accordance  with  the
          above-referenced court order.


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


          ORDERED, that the prior  order of the Commissioner  be,  and  the
          same hereby is, modified to incorporate the within  clarification
          of the  basis  of  the  overcharge  calculations,  utilizing  the
          default procedure; in  all  other  respects,  the  Commissioner's
          prior order is hereby affirmed.

          ISSUED:

                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner




                     








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