Docket No. EH 410140-RT
                                    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
          IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
          APPEAL OF                               DOCKET NO.: EH 410140-RT  

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
          Samuel D. Morell                        NO.: CL 410003-AD
                                                  Premises: 519 E. 81 St.,
                                   PETITIONER               Apt. D, N.Y., NY
          ------------------------------------X


                       ORDER AND OPINION REMANDING PROCEEDING





              The above-named tenant filed a timely petition for 
          administrative review of an order issued concerning the housing 
          accommodations described above.

              The Commissioner has reviewed all the evidence in the record 
          and has carefully considered that portion of the record relevant to 
          the issues raised by the petition.

              On November 15, 1988 the tenant commenced the instant 
          proceeding by filing a complaint alleging that approximately May 
          1969 the owner had illegally converted the subject apartment (the 
          tenant moved in approximately February 1, 1976).  As evidence the 
          tenant produced the Certificate of Occupancy (C. of O.) of the 
          subject building, the C. of O. indicating that the building had 
          four apartments per floor.  The tenant alleged that the owner had 
          illegally converted the 4 apartments to 5 apartments, and included 
          a copy of the Schedule of Purchase Prices and Share Allocations to 
          Apartments, which indicated that there were 5 apartments on each 
          floor, and other documentation of the illegality of the conversion, 
          including a Notice of Violation # 34 021423 Q of the Environmental 
          Control Board, City of New York, said Notice dated March 21, 1989 
          and finding that "Occupancy contrary to that allowed by the 
          (C of O)...".

              On May 9, 1990 the Administrator issued the order being 
          appealed herein, finding that the subject apartment consisted of 
          four rooms, to wit a kitchen, living room, bedroom and one room in 
          the basement.  (The basement room is the result of the allegedly 












          Docket No. EH 410140-RT

          illegal conversion.)  The Administrator additionally found that the 
          D.H.C.R. did not posess the jurisdiction to decide on the legality 
          of the basement conversion, and that, upon a determination by "a 
          City agency having jurisdiction" that the basement room (and the 
          occupancy thereof) was indeed illegal, the Administrator would take 
          "further action as is appropriate..."

              On appeal, the tenant contends that, contrary to the 
          Administrator's order the D.H.C.R. does have jurisdiction to decide 
          on the legal status of a room.  Alternatively, the tenant argues, 
          that if as stated in the order the Administrator must wait for the 
          appropriate agency to make that determination, then that 
          determination has already been made.

              In support of this contention the tenant submits a copy of 
          Notice of Violation # 34 021423-Q (see above), and Environmental 
          Control Board Notice of Violation # 34 042254-R, issued May 16, 
          1990.  The language of both Notices is similar, except that the 
          latter notice explicitly identifies the subject apartment as 
          illegal.  On appeal the tenant concedes that the Administrator's 
          order correctly determined the subject apartment's room count.

               The Commissioner is of the opinion that this proceeding should 
          be remanded to the Administrator for consideration of the tenant's 
          overcharge complaint.

              The Commissioner is of the opinion that the tenant has proved 
          that the conversion was illegal.  The Commissioner thus finds that 
          the Administrator was in error in finding that the question of the 
          illegality of the conversion was still pending.

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

              ORDERED, that this proceeding be, and the same hereby is, 
          remanded to the Administrator.  On remand, the Administrator is 
          directed to determine the merits of tenant's complaint of illegal 
          conversion and overcharge, in consideration of the established 
          illegality of the conversion.

          ISSUED:

                                                                            
                                             Joseph A. D'Agosta
                                             Acting Deputy Commissioner
    

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