DHCR Decisions          AJ 410344 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.:  AJ 410344 RO                R. W. KERN, INCORPORATED,                                                  DRO DOCKET NO.: L 3110217-R                                  PETITIONER          ----------------------------------X                                              ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW          On October 24, 1986, the  above-named  petitioner-owner  filed  a          Petition for Administrative Review against  an  order  issued  on          October 20, 1986  by  a  Rent  Administrator  concerning  housing          accommodations known as Apartment 36D at 211  West  56th  Street,          New York,  New  York  wherein  the  District  Rent  Administrator          determined that the tenant had been overcharged in the amount  of          $275.73, including excess security and  interest  on  overcharges          collected since April 1, 1984.          The Commissioner notes that this proceeding was  initiated  prior          to April 1, 1984.  Sections 2526.1(a)(4)  and  2521.1(d)  of  the          Rent Stabilization Code (effective May 1,  1987)  governing  rent          overcharge  and  fair  market  rent  proceedings   provide   that          determination of these matters be based  upon  the  law  or  code          provisions in  effect  on  March  31,  1984.   Therefore,  unless          otherwise  indicated,  reference  to   Sections   of   the   Rent          Stabilization Code (Code) contained herein are  to  the  Code  in          effect on April 30, 1987.          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 originally commenced by the filing of a  rent          overcharge complaint by the tenant on March 28, 1984.          The  tenants  took  occupancy  pursuant  to  a  one  year   lease          commencing March 1, 1983, and expiring February 28,  1984,  at  a          monthly rent of $1,138.38.  The complaint also  stated  that  the          tenant had assumed tenancy when his roommate, who was  the  prior          tenant, vacated the apartment.          The owner was served  with  a  copy  of  the  complaint  and  was          directed to submit a complete lease  history,  to  establish  the          lawfulness of the rent being charged.  The  owner  complied  with          this request.          AJ 410344 RO          The subject-premises became subject  to  the  Rent  Stabilization          Code in accordance with Section 421-a of the New York State  Real          Property Tax Law.  The initial tenancy of the premises  commenced          on October 1, 1978, under a two-year lease at a monthly  rent  of          $635.00.          In Order Number L 3110217 R, issued on October 20, 1986, the Rent          Administrator determined that the  complaining  tenant  had  been          overcharged in the amount of $275.73, including  excess  security          and interest on overcharges collected since April 1,  1984.   The          lawful rent as of the effective date of the order was  determined          as $1,187.73, which was $9.60 in  excess  of  the  rent  actually          charged the tenant.          In its petition dated October 20, 1986,  the  owner  amended  the          Administrator's  rent  calculations  chart  to  include   various          increases of the lawful stabilized rent.  Petitioner also changed          the effective date of the initial lease to October 1, 1978,  from          June  1,  1978.   As  a  result,  petitioner  proposes  that  all          overcharges be eliminated, and that the final lawful rent  stated          in the order be increased to $1,200.29 from $1,187.73.          The Commissioner is of the opinion that this petition  should  be          denied.          The petitioner's calculations do not conform to the guidelines or          to the provisions of the Rent Stabilization Code.   It  is  noted          that the petitioner incorrectly  calculated  the  prior  tenants'          vacancy lease effective March 1, 1980, by using a  base  rent  of          $724.33, while the correct base is $648.97, which is the initial,          or base, rent of $635.00 plus the first 2.2% increase  under  the          421-a program.  Since the petitioner's calculations fail to  make          this adjustment, its proposed lease  history  must  be  rejected.          The overcharges and lawful rent determined by  the  Administrator          are sustained.          THEREFORE, in accordance with  the  Rent  Stabilization  Law  and          Code, it is          ORDERED, that the owner's petition be, and the  same  hereby  is,          denied, and that the  Administrator's  order  be,  and  the  same          hereby is, affirmed.          ISSUED:                                                  ------------------------                                                  ELLIOT SANDER                                                  Deputy Commissioner