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

      APPEAL OF                              DOCKET NO.: FB210184RO

             Aaron Elkind,                   DRO DOCKET NO.: CA210435R

                                             TENANT: Corrine Joseph           


      On February 7, 1991, the above-named petitioner-owner filed a Petition 
      for Administrative Review against an order issued on January 24, 1991, 
      by the Rent Administrator, 92-31 Union Hall Street, Jamaica, New York, 
      concerning the housing accommodations known as 1281 Union Street 
      Apartment 1D, Brooklyn, New York, wherein it was determined that the 
      owner had overcharged the tenant.

      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 tenant's filing of a 
      rent overcharge complaint on January 28, 1988. The tenant had assumed 
      occupancy on July 15, 1983 pursuant to a three year lease at a monthly 
      rent of $450.00.  The tenant stated in the complaint that she received 
      a copy of the initial registration (RR-1) in 1984, and did not file an 
      objection within 90 days.  In answer to the complaint, the owner 
      submitted a complete lease history since the base date.     

      In Order Number CA210435R, the Rent Administrator determined that the 
      tenant had been overcharged in the amount of $3,130.01, including excess 
      security and treble damages for overcharges collected on and after April 
      1, 1984.

      In its petition the owner contends that the Administrator enoneously 
      deducted a permanent MCI increase that was granted by the DHCR in M.C.I 
      Order No. OM-5313, which deduction resulted in all determined 

      The Commissioner is of the opinion that this petition should be granted.
      An examination of the record establishes that the Administrator failed 
      to timely compute a permanent M.C.I. increase of $27.00 per month, and 


      mistakenly determined an overcharge because the increase was omitted 
      from the base rent before calculating the lawful rent for the lease term 
      commencing on August 1, 1986, under Guidelines 17.  Overcharges were 
      subsequently increased in the next two lease terms.  

      The lawful rent on July 31, 1986 is $479.88, which is calculated as 

           $450.00 lease rent on April 1, 1984
           $  2.88 (0.95% of April 1983 rent of $302.89 permanent increase of 
                    #OM-4782, effective April 1985) 
           $ 27.00 (6% of November 1983 rent of $450.00 permanent increase of
                    #OM-5313 effective January, 1986)

      The lawful rent for the two year lease term commencing on August 1, 1986 
      is calculated as follows:

           Guideline #17: July 31, 1986 rent of $479.88 per month 
           increased by 6% guideline increase for a two year renewal 
           lease = $511.07.

      All overcharges are thus eliminated for the period under review in the 
      subject order.

      If the owner has already complied with the Rent Administrator's order 
      and there are arrears due to the owner as a result of the instant 
      determination, the tenant is permitted to pay off the arrears in 24 
      equal monthly installments.  Should the tenant vacate after the issuance 
      of this order or have already vacated, said arrears shall be payable 

      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 same 
      hereby is, granted, that the order of the Rent Administrator be, and the 
      same hereby is, revoked, and it is found that no rent overcharge 


                                      JOSEPH A. D'AGOSTA
                                      Deputy Commissioner

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