ADM. APPEAL DOCKET NO. EE 410309 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  S.J.R. 5849 
          IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE APPEAL 
          APPEAL OF                              DOCKET  NO.  EE  410309  RO
                                                      
                   JACK RANDAZZO,             :                            
                                                 DISTRICT RENT 
                                                 OFFICE      DOCKET      NO.
                                                 CK 410267 R              
                                 PETITIONER   :  
          ------------------------------------X   TENANT:   JOHN   A.   MUDD
                             
                  ORDER AND OPINION REMANDING PROCEEDING ON APPEAL


               On May 31, 1990 the  above-named  petitioner-owner  filed  an
          Administrative Appeal against an order issued on April 27, 1990 by 
          the District Rent Administrator, 92-31 Union Hall Street, Jamaica, 
          New York, concerning the housing accommodations known as 331  West
          38th Street, New York, New York, Apartment 5. 

               Subsequent thereto, the petitioner filed a  petition  in  the
          Supreme Court pursuant to Article 78 of the Civil Practice Law and 
          Rules  requesting  that  the  Court   direct   the   Division   to
          expeditiously  issue   a   determination   of   the   petitioner's
          administrative appeal. 

               On October 15, 1991, an order was signed by  Justice  Phyllis
          Gangel-Jacobs directing the Division  to  expeditiously  determine
          the petitioner's administrative appeal.

               The Administrative Appeal is  being  considered  pursuant  to
          the provisions of 9 NYCRR 2526.1 and 9 NYCRR 2528.4 (b).   

               The issue herein is whether the District  Rent  Administrator
          properly determined the tenant's complaint of rent overcharges.

               The District Rent  Administrator's  order,  appealed  herein,
          determined that the tenant had been overcharged a total, including 
          excess security and treble  damages,  of  $104,045.77  during  the
          period from July 25, 1984 through September 30, 1989;  established
          the lawful stabilization rent at $146.41 per month from  July  25,
          1984 and continuing through September 30, 1989; and  directed  the
          owner to roll back the rent to the legal regulated amount  and  to
          make full refund or credit to the tenant.





               This order was based upon findings that the owner had  failed
          to submit requested documentation to establish the rental  history






          ADM. APPEAL DOCKET NO. EE 410309 RO
          for the subject apartment; that the owner had failed  to  register
          the apartment for 1984; and that the overcharge was willful.  

               On appeal, the petitioner-owner alleges, in  substance,  that
          the  owner  was  denied  due  process;  that  the  District   Rent
          Administrator's order was issued prior to the date  on  which  the
          owner was required to respond;  that  a  Final  Notice  of  Treble
          Damages was issued on April 17, 1990, which notice gave the  owner
          twenty days within which to respond, or until May  7,  1990;  that
          the District Rent Administrator issued  the  order  on  April  27,
          1990, ten days short of the time within which  the  owner  had  to
          respond, and the owner was denied his due process  rights  because
          he was not given adequate time to respond  before  the  order  was
          issued; that the owner responded  to  the  April  17,  1990  Final
          Notice and said response was filed on May 1, 1990 by the Division; 
          that evidence which the  owner  submitted  to  the  District  Rent
          Administrator establishing that the owner was entitled to  a  rent
          increase for improvements to the subject apartment pursuant  to  9
          NYCRR 2522.4 (a) (1) was apparently ignored or never even reviewed 
          by the District  Rent  Administrator;  that  treble  damages  were
          erroneously assessed; that the District Rent Administrator's order 
          erroneously fails to calculate the percentage increases  available
          to an owner upon a renewal of a lease; that  the  owner  submitted
          rent  records  for  the  years  1976  to  1984;  and  that,   upon
          information and belief, rent registrations for the years  1985  to
          1989 were filed with the Division.    

               After a careful  consideration  of  the  entire  evidence  of
          record the Commissioner is of  the  opinion  that  the  proceeding
          should be remanded to the District Rent Administrator for  further
          consideration, as provided hereinbelow.

               A review of the record  supports  the  owner's  assertion  on
          appeal that the District Rent Administrator's order was issued ten 
          days prior to the date until  which  the  owner  was  afforded  an
          opportunity  to   respond.    Under   these   circumstances,   the
          Commissioner finds that the owner was  denied  his  right  to  due
          process and further finds that the proceeding should  be  remanded
          to the District Rent Administrator for  appropriate  consideration
          of the owner's response to the final notice  and  such  additional
          processing as may be deemed appropriate.  It is the opinion of the 
          Commissioner that the other allegations raised  by  the  owner  on
          appeal need not  be  addressed  herein  as  they  involve  matters
          subject to further review on remand. 

               On  remand,  the  District  Rent  Administrator  should  give
          appropriate consideration to the  matter  specified  above,  after
          written notice to the owner and tenant  and  their  attorneys,  if
          any.   Said  notice  should  specifically  afford  all  interested
          parties  a  reasonable  opportunity  to  comment   and/or   submit
          additional evidence in writing. 



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

               ORDERED, that this administrative  appeal  be  and  the  same
          hereby is granted to the extent of remanding  this  proceeding  to






          ADM. APPEAL DOCKET NO. EE 410309 RO
          the  District  Rent  Administrator  for  further   processing   in
          accordance with this order and  opinion.   The  previously  issued
          stay of so much of the  District  Rent  Administrator's  order  as
          directed a refund is hereby continued until a new order is  issued
          upon remand.  The District Rent Administrator's order  remains  in
          full force and effect in all other respects until a new  order  is
          issued on remand.  

          ISSUED:




                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner



                                          






























    

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