FG 410150 RO

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

          ------------------------------------X S.J.R. 6453
          APPEAL OF                             DOCKET NO.: FG 410150 RO

                                                DRO DOCKET NO.: EI 410404 R
                     CHESTER PECHOCK,
                                                TENANTS: JULIA MILLER         
                                                         BORIS MCGIVER
                                                         GENE WHEELER


          On July 11, 1991, the above-named petitioner-owner filed a Petition 
          for Administrative Review against an order issued on July 2, 1991,  
          by the Rent Administrator, Gertz Plaza Jamaica, New York, 
          concerning the housing accommodations known as 40 East 3rd Street,  
          New York, Apartment No. 2, wherein the Rent Administrator 
          determined that the owner had overcharged the tenant.

          Subsequent thereto, the petitioner-owner filed a Petition in the 
          Supreme Court pursuant to Article 78 of the Civil Practice Law and 
          Rules requesting that the "deemed denial" of its Petition for 
          Administrative Review be annulled.  The proceeding was remitted to 
          the Division of Housing and Community Renewal (DHCR) and the 
          owner's petition is herein decided on the merits.

          The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 of the Rent Stabilization Code.

          The issue herein is whether the Rent Administrator's order was 

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

          This proceeding was originally commenced by the filing of a rent 
          overcharge complaint by the tenant in September 1990. 

          In Order Number ZEI 410404 R, the Rent Administrator established 
          the lawful stabilized rent as $297.54 effective June 1, 1989 and 
          froze the rent at that amount through June 30, 1991 based on the 
          owner's failure to register the subject apartment for the years 
          1986 and 1988.  The Administrator directed a refund to the tenant 
          of overcharges in the amount $37,562.11 including treble damages.

          In this petition, the owner contends in substance that he filed the 
          1986 registration in October 1986 and filed the 1988 registration 

          FG 410150 RO

          on August 27, 1988 and that the three tenants were all subtenants 
          of one Tim Roberts.  With his petition the owner submits a receipt 
          for certified mail addressed to the Division of Housing and 
          Community Renewal (DHCR) Rent Registration Processing Unit dated 
          October 2, 1986, a return receipt indicating receipt by the DHCR on 
          October 8, 1986 and a receipt for certified mail addressed to 
          DHCR's Gertz Plaza office dated August 27, 1988.
          In answer to the owner's petition, the tenants Boris McGiver and 
          Julia Miller state in substance that the tenants are all students 
          at New York University and that the owner rented out each of the 
          three rooms in the apartment to a different student.  Mr. Roberts 
          sent in a letter stating that he, like the other tenants, rented 
          one room in the apartment from the owner.  All the tenants paid 
          rent directly to the owner.

          The Commissioner is of the opinion that this petition should be 

          An examination of the record in this case discloses that during the 
          processing of this proceeding the Agency's Rent Registration Unit 
          was contacted concerning the issue of the 1986 and 1988 
          registration.  The Registration Unit could not find any record of 
          the owner's registration for the subject apartment for the years in 
          question.  During the proceeding before the Administrator the owner 
          submitted registration forms for 1986 and 1988 which were on 1985 
          registration forms.  These forms did not constitute proper 
          registration for those years.  In June 1991, the owner submitted 
          1986 and 1988 registration forms for the subject apartment.  In 
          accordance with Policy Statement 92-3, the Commissioner finds that 
          the owner has not proved that he filed proper registration forms 
          with the DHCR for the years in question until June 1991.

          The Commissioner also finds that all three tenants were rented 
          separate rooms in the subject apartment by the owner and paid their 
          rent directly to the owner and therefore could properly file this 
          overcharge complaint.

          Accordingly, the Rent Administrator's order was warranted.

          Because this determination concerns lawful rents only through      
          June 30, 1991, the owner is cautioned to adjust subsequent rents to 
          an amount no greater than that determined by the Rent 
          Administrator's order plus any lawful increases, and to register 
          any adjusted rents with this order and opinion being given as the 
          explanation for the adjustment.  A copy of this Order is being sent 
          to the current occupant of the subject apartment.

          This order may, upon the expiration of the period in which the 
          owner may institute a proceeding pursuant to Article 78 of the 
          Civil Practice Law and Rules, be filed and enforced in the same 
          manner as a judgment.

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

          ORDERED, that this petition for administrative review be, and the 

          FG 410150 RO

          same hereby is, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is, affirmed.


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner


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