AJ 110405 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 110405 RO
                                                           
               Dara Gardens Assoc.,            DISTRICT RENT ADMINISTRATOR
                                               DOCKET NO.: Q 3119602 R
           
                                   PETITIONER               
          -----------------------------------X

              ORDER AND OPINION GRANTING ADMINISTRATIVE APPEAL IN PART

          On October 22, 1986 the  above-named  petitioner-owner  filed  an
          Administrative Appeal against an order issued  on  September  24,
          1986 by the District Rent Administrator, 10 Columbus Circle, 
          New York, New York, concerning the housing  accommodations  known
          as 150-20 71st Avenue, Flushing New York, Apartment 25.

          The Administrative Appeal is being  determined  pursuant  to  the
          provisions of 9 NYCRR 2526.1(f).

          The  District  Rent  Administrator's  order,   appealed   herein,
          determined  that  the  tenant  had  been  overcharged  a   total,
          including accrued interest and excess security, of $119.28 during 
          the period from June 1, 1979 through May 31, 1985.

          On appeal, the petitioner-owner alleges, in  substance,  that  it
          purchased  the  subject  building  on  June  6,  1986;  that  the
          Commissioner has held that a current owner must only  refund  the
          overcharges it has collected as long as  there  is  no  collusion
          between it and the prior owner; that there has been  no  evidence
          of collusion in  this  proceeding;  and  that  the  order  should
          therefore be modified by holding the owner only  responsible  for
          overcharges it collected since June 1986.  

          After a careful consideration of the entire  evidence  of  record
          the Commissioner is of the opinion that the administrative appeal 
          should be granted, in part.

          Section 9 NYCRR 2526.1(f) provides, in pertinent part,  that  for
          overcharges collected prior to April 1, 1984, an  owner  will  be
          held responsible only for its portion of the overcharges, in  the
          absence of collusion or any relationship between such  owner  and
          any prior owners; and that for overcharges collected on or  after
          April 1, 1984, a current  owner  shall  be  responsible  for  all
          overcharge penalties, including penalties based upon  overcharges
          collected by any prior owner.

          Applying  the   above-mentioned   provisions   to   the   instant
          proceeding,  the  Commissioner  finds  that  the  District   Rent
          Administrator's order should be  modified  to  provide  that  the
          prior owner is responsible for  the  overcharges  collected  from
          June 1, 1979 through  March  31,  1984,  totalling  $91.84.   The






          AJ 110405 RO
          current owner is jointly and severally responsible with the prior 
          owner for the balance of the overcharges collected on  and  after
          April 1, 1984.  The current owner would be solely responsible for 
          any overcharges it collected subsequent to the date  it  acquired
          title to the building.  This finding is without prejudice to  any
          action that the current owner may have against  the  prior  owner
          for overcharges reimbursed by the current owner which  the  prior
          owner had collected.

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

          ORDERED, that this administrative appeal be, and the same  hereby
          is, granted, in part, and that the order  of  the  District  Rent
          Administrator be, and the same hereby is,  modified  as  provided
          hereinabove.

          ISSUED:

                                                                           
                                                       JOSEPH A. D'AGOSTA
                                                       Deputy Commissioner



    

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