HD410099RO
                                  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.HD410099RO
                                              :    
            Aaron H. Spiegel/P & R                 DRO DOCKET NOs:
            Equities, Inc.,                        ZGC410006RP, (51536),
                                                   (BC410149RT)
                               PETITIONER     :                
          ------------------------------------X    TENANT: Diane Liebelson 
                                                   

             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          On April 23, 1993 the above-named petitioner-owner filed a Petition 
          for Administrative Review against an order issued on March 31, 1993 
          by the Rent Administrator, 92-31 Union Hall Street, Jamaica,  New
          York concerning the housing accommodations known as 262 West 107th 
          Street, New York, New York,  Apartment  No.2B  wherein  the  Rent
          Administrator determined that the owner had collected excess rent 
          from the tenant.

          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 
          issue raised by the administrative appeal.

          This proceeding was originally commenced in September, 1984 by the 
          filing of a fair market rent appeal by the tenant, who stated that 
          she had commenced occupancy on April 1, 1984 at a rent of $775.00 
          per month.

          The owner was served with the fair market rent appeal.  The owner 
          submitted leases for apartments in the same line, as well as a paid 
          invoice for new windows.  The owner also submitted a 1984 Fuel Cost 
          Adjustment form showing a Cumulative Monthly Rent  Adjustment  of
          $17.40 for the subject apartment.




















          HD410099RO

          In an order  issued  on  February  12,  1987  the  Administrator,
          calculating a current comparable rent of $1,292.42  treating  the
          average 1986 rent of stabilized apartments in the same line as if 
          they were the rents of apartments decontrolled between July 1, 1971 
          and June 30, 1974, and updating such average to 1984, found  that
          the tenant's initial rent was less than the final Fair Market Rent, 
          and dismissed the tenant's fair market rent appeal.

          The tenant filed an appeal (Docket No. BC410149RT), pointing  out
          the Administrator's error.  On February 28,  1992  an  order  was
          issued remanding the proceeding because of the error and  because
          the owner  had  not  been  afforded  the  opportunity  to  submit
          comparability data in accordance with proper procedures applicable 
          to fair market rent appeals filed after April 1, 1984.

          The new proceeding was assigned Docket No. FG410014RP.  On November 
          10, 1992 and January 25, 1993 the owner was sent fair market rent 
          answering packages.  In response, the owner submitted copies of the 
          same rental history forms submitted in the earlier proceeding, such 
          forms indicating that two of the apartments in the "B"  line  had
          base dates in 1982 and 1983.  However, the owner  also  submitted
          Schedule  1:  Comparability  Data,  which  indicated  that  those
          apartments had actually been decontrolled about ten years earlier.

          In an order issued on March 31, 1993 the  Administrator,  stating
          that the comparability submitted by the owner was not useable and 
          that the owner had failed to substantiate the installation of a new 
          stove and refrigerator, determined a Fair Market Rent of $431.99, 
          and found that the owner had collected excess rent of $42,386.12 as 
          of March 31, 1993.

          In this petition, the owner contends in substance that "[w]e feel 
          that we did offer an alternative way to deal with the fair market 
          rent"; that the 1984 MBR was $369.54 rather than $307.59; that the 
          fuel cost adjustment was $20.80 rather than $17.40; and that these 
          figures used in the DHCR's formula result in a figure of  $506.25
          rather than $431.99.

          In answer, the tenant asserts in substance that the Administrator's 
          order was correct, and that the owner did not put the date or the 
          county on his petition as specified in the instructions.

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







          Pursuant to Sections 2522.3(e) and (f) of the Rent  Stabilization






          HD410099RO

          Code effective May 1, 1987, for fair market  rent  appeals  filed
          after April 1, 1984, comparability will be determined based on the 
          rents either of comparable apartments which either are market-rent 
          apartments [typically not subject  to  rent  regulation]  or,  if
          stabilized, first became stabilized within four years prior to or 
          one year subsequent to  the  commencement  date  of  the  initial
          stabilized lease of the housing accommodation involved.   In  the
          present case the owner submitted as comparables apartments  which
          become stabilized in the early 1970's.   They  do  not  meet  the
          criteria to be used as comparables.  

          Since the  owner  did  not  submit  acceptable  comparables,  the
          Administrator obtained the fair market rent by use of Special Fair 
          Market Rent Guidelines Order 15, which established the fair market 
          rent:

               for dwelling units subject to the Rent And Rehabilitation 
               Law on September 30, 1983, 20% above the sum of the 1982- 
               83 maximum base rent,  as  it  existed  or  would  have
               existed, plus the current allowable fuel cost adjustments 
               as established on Rent Control forms, pursuant to Section 
               33.10 of the Rent Regulations, beginning in 1980.

          It was therefore proper for the Administrator to use the  1982-83
          MBR of $307.59, rather than the 1984 MBR of $369.54.  Regarding the 
          fuel cost adjustment: On February 6, 1984 the owner had submitted 
          a 1984 Maximum Base Rent Master Building Rent Schedule, listing a 
          fuel cost adjustment of $20.80 for the subject apartment.  However, 
          an examination of the actual fuel cost schedule ("Part VI- Schedule 
          of monthly Rent Increases or Decreases for Controlled Apartments- 
          Fuel Cost Adjustment- 1983") reveals that $20.80 was actually the 
          adjustment for 1983.  On February 27, 1984 the owner submitted the 
          1984 fuel cost schedule.  It showed a decrease of $3.40, resulting 
          in a 1984 fuel cost adjustment of $17.40.  That was  the  current
          fuel cost adjustment when the complainant commenced occupancy, and 
          the Administrator was correct in using it.

          The owner is directed to reflect the findings and  determinations
          made in the Administrator's  order  on  all  future  registration
          statements, including those for the current year if  not  already
          filed, citing the Administrator's order  as  the  basis  for  the
          change.  Registration statements already on file, however, should 
          not be amended to reflect the findings and determinations made in 
          the Administrator's order.  The owner is further directed to adjust 
          subsequent rents to an amount no greater than that determined  by
          the Administrator's order plus any lawful increases.



          If the owner does not take appropriate action to comply with this 
          order within sixty days from the date of issuance of this  order,
          the tenant may credit the excess rent against the  next  month(s)












          HD410099RO

          rent until fully offset.

          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, denied and that the order of the Rent Administrator 
          be, and the same hereby is, affirmed.  The  lawful  stabilization
          rent is $568.78 per month in the lease from April 1, 1992 to March 
          31, 1994.  The amount of the rent refund through March 31, 1993 is 
          $42,386.12, including excess security of $451.64.


          ISSUED:

           
                                                                           
                                                    JOSEPH A. D'AGOSTA
                                                    Deputy Commissioner
    

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