FJ 110180 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
          IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW 
          APPEAL OF                               DOCKET NO.: FJ 110180-RO

                     KEW GARDENS
            TERRACE REALTY PARTNERSHIP,           DRO DOCKET NO.: ZDD-110047-RV
                                                   
                                                  TENANTS:  MARTIN AND ELAINE 
                                                                 EINHORN
                                  PETITIONER
          ----------------------------------X                                   


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


          On October 9, 1991,  the  above-named  petitioner-owner  filed  a
          Petition  for  Administrative  Review  of  an  order  issued   on
          September 27, 1991, by the District Rent Administrator,  Jamaica,
          New York, concerning the housing accommodation known as Apartment 
          FC-3 at 117-14 Union Turnpike, Kew Gardens, New York, wherein the 
          Administrator issued an Order directing the owner  to  issue  the
          tenants a renewal lease.

          The issue herein is whether the Rent  Administrator's  Order  was
          warranted.

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

          This proceeding was commenced when the tenants filed a  complaint
          alleging the owner's failure to renew their lease. 

          In answer to the  tenants'  complaint,  the  owner  contended  in
          substance that it should not have to issue a renewal lease to the 
          Einhorns  who were subtenants of the prime tenant,  Carol  Tager.
          Ms. Tager gave up the prime lease which expired  on  January  31,
          1989.  The subtenants have  not  paid  any  amount  for  use  and
          occupancy since February 1, 1989.  The owner took the  subtenants
          to court in a holdover proceeding (L&T  Index  Number  54144/91).
          That case was settled by stipulation before the  Honorable  Judge
          Haber on March 4, 1991. In the stipulation  the  Einhorns  agreed
          that  they  were  not  rent  stabilized  tenants  and  that  this
          stipulation could be submitted to the  Division  of  Housing  and
          Community Renewal (DHCR).  Both parties to the  stipulation  were
          represented  by  counsel.  The  owner  submitted  copies  of  the
          stipulation of settlement, the sublease, the prime  lease  and  a
          letter from Ms. Tager giving up her rights to  the  prime  lease.

          The Administrator found that the  Commissioner  in  Order  Number






          FJ 110180 RO
          23,402 FTC dated August 8, 1991 had determined that  the  tenants
          were rent stabilized tenants for the subject apartment and, based 
          thereon, the  Administrator  directed  the  owner  to  offer  the
          tenants a renewal lease upon payment of all rent arrears.

          In this petition, the owner reiterates the arguments made  before
          the Administrator.  

          The subtenants did not submit a response to the owner's petition.

          The Commissioner is of the opinion that this petition  should  be
          granted.  

          The  record  in  the  instant  case  reveals  that  the  Einhorns
          initially moved into the subject apartment  as  subtenants.   The
          subtenants remained in the  subject  apartment  after  the  prime
          tenant had given up her rights to the  apartment.   However,  the
          owner commenced a  holdover  proceeding  wherein  the  subtenants
          agreed inter alia that they had  no  rights  as  rent  stabilized
          tenants Order Number 23,402 FTC issued  on  August  8,  1991  was
          inconsistent with the stipulation  of  settlement  signed  before
          Judge Haber on March 4, 1991 insofar as is found  the  subtenants
          to be rent stabilized tenants.  The issue in Order Number  23,402
          FTC was whether the owner was providing services.  The  issue  of
          services was properly before  the  Commissioner  as  the  subject
          apartment was subject to the rent stabilization law even  through
          no one raised the issue that  the  tenants  themselves  were  not
          stabilized.  Accordingly, the Commissioner finds, based upon  the
          record, that the tenants are not rent stabilized based  upon  the
          stipulation of settlement signed  before  Judge  Haber,  and  the
          fact that subtenants are not entitled to rent  stabilized  leases
          in their own name.









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

          ORDERED, that this petition be, and the same hereby is,  granted,
          that the District Rent Administrator's order  be,  and  the  same
          hereby is, revoked, and that the portion of Order  Number  23,402
          FTC wherein it was found  that  the  subtenants  were  stabilized
          tenants is hereby revoked.






          ISSUED:

                                                  ------------------------
                                                  JOSEPH A. D'AGOSTA






          FJ 110180 RO
                                                  Acting Deputy Commissioner
           
             
                                             
    

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