DOCKET NO. AJ-210062-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-210062-RO
                                               :
                 ISAAC WADE,                   :  DISTRICT RENT OFFICE
                                               :  DOCKET NO. K-3105695-R
                                               :
                                   PETITIONER  :
          -------------------------------------X


                      ORDER AND OPINION GRANTING PETITION FOR 
                            ADMINISTRATIVE REVIEW IN PART

          On October 7, 1986,  the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          October 1, 1986 by the District Rent Administrator,  92-31  Union
          Hall Street, Jamaica, New York, concerning housing accommodations 
          known as 2662 Ocean Avenue, Brooklyn, New York, Apartment 8-F. 
          The Commissioner has reviewed all of the evidence in  the  record
          and has carefully considered that portion of the record  relevant
          to the issue raise by the administrative appeal.

          This proceeding  was  commenced  by  the  tenant  filing  a  rent
          overcharge complaint.  The tenant took occupancy  pursuant  to  a
          lease commencing September 15, 1981 and  expiring  September  14,
          1983 at a monthly rental of $400.00.  The tenant  indicated  that
          the owner was charging a rent increase for the installation of  a
          new boiler and burner.

          In Order Number 23681, the  Rent  Administrator  established  the
          lawful stabilized rent based on the owner's failure to  submit  a
          complete rental history for the subject apartment and directed  a
          refund  of  $10,121.05,  including  treble  damages  assessed  on
          overcharges corrected after April 1, 1984, to the tenant.

          In the petition the owner contends that it submitted  a  complete
          set of leases during the proceeding before the Administrator  and
          included copies of said leases  with  the  petition.   The  owner
          further contends that he is entitled to  rent  increase  for  the
          installation of a new boiler at the subject premises pursuant  to
          Docket 2AC573151-89.




          In answer to the petition, the tenant asserts that the owner  did
          not properly submit the required records.

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

          Section 42A of the former Rent Stabilization Code  requires  that






          DOCKET NO. AJ-210062-RO
          an owner retain complete records for each stabilized apartment in 
          effect from June 30, 1974  (or  the  date  the  apartment  became
          subject to rent stabilization, if later) to date and  to  produce
          such records to the Division of  Housing  and  Community  Renewal
          upon demand.

          Section 26-516 of Rent  Stabilization  Law,  effective  April  1,
          1984, limited an owner's obligation to provide  rent  records  by
          providing that an owner  may  not  be  required  to  maintain  or
          produce rent records for more than four years prior to  the  most
          recent registration, and concomitantly, established  a  four-year
          limitation on the calculation of rent overcharges.

          It has been the  Division  of  Housing  and  Community  Renewal's
          policy  that overcharge complaints filed prior to April  1,  1984
          are to be processed pursuant to the law  or  Code  in  effect  on
          March 31, 1984. (See Section 2526.1(a)(4)  of  the  current  Rent
          Stabilization  Code.)  The  Division  of  Housing  and  Community
          Renewal has therefore applied Section 42A of the former  Code  to
          overcharge complaints filed prior to  April  1,  1984,  requiring
          complete rent records in these cases.  In following this  policy,
          the Division of Housing and Community Renewal has  sought  to  be
          consistent with the legislative intent of the Omnibus Housing Act 
          (Chapter 403, Laws of 1983), as implemented by the New York  City
          Conciliation and Appeals Board (CAB), the predecessor  agency  to
          the Division of Housing and Community Renewal, to determine  rent
          overcharge complaints filed with the CAB prior to April  1,  1984
          by applying the law in effect at the time  such  complaints  were
          filed so as not to deprive such tenants of their  right  to  have
          the lawful stabilized rent determined from the June 30, 1974 base 
          date and so as not to deprive  tenants  whose  overcharge  claims
          accrued more than 4 years prior to April 1, 1984 of  their  right
          to recover such overcharges.  In such cases, if the owner  failed
          to produce the required rent records, the lawful stabilized  rent
          would be determined pursuant to the default procedure approved by 
          the Court of Appeals in 61 Jane  Street  Associates  v.  CAB,  65
          N.Y.2d 898, 493 N.Y.S.2d 455 (1985).






          However, it has recently been held in the case of J.R.D. Mgt.  v.
          Eimicke, 148 A.D.2d 610, 539 N.Y.S.2d 667  (App.  Div.  2d  Dep't
          1989), motion for leave to reargue or for leave to appeal to  the
          Court of Appeals denied (App. Div. 2d Dep't, N.Y.L.J.,  June  28,
          1989, p.25, col.1), motion for leave to appeal to  the  Court  of
          Appeals denied (Court of Appeals, N.Y.L.J., Nov. 24, 1989, 
          p. 24, col. 4)., motion for leave to  reargue  denied  (Court  of
          Appeals, N.Y.L.J., Feb. 15, 1990, p. 25, col. 1), that the law in 
          effect at the time of the  determination  of  the  administrative
          complaint rather than the law in effect at the time of the filing 
          of the complaint must be applied and that the Division of Housing 
          and Community Renewal could not require an owner to produce  more
          than four years of rent records.

          Since  the  issuance  of  the  decision  in  JRD,  the  Appellate
          Division, First Department, in the case of Lavanant v. DHCR,  148






          DOCKET NO. AJ-210062-RO
          A.D.2d 185, 544 N.Y.S.2d 331 (App.  Div.  1st  Dep't  1989),  has
          issued a decision in direct conflict with  the  holding  in  JRD.
          The Lavanant court expressly rejected  the  JRD  ruling,  finding
          that the Division of Housing and Community Renewal  may  properly
          require an owner to submit complete  rent  records,  rather  than
          records for just four years, and that such  requirement  is  both
          rational and supported by the law and legislative history of  the
          Omnibus Housing Act.

          Since in the instant case the subject dwelling unit is located in 
          the Second Department, the  Division  of  Housing  and  Community
          Renewal is constrained to follow the JRD decision in  determining
          the tenant's overcharge complaint, limiting the  requirement  for
          rent records to April 1, 1980.

          A review of the DHCR's records reveals that the owner submitted  a
          rental history from November 1, 1978 and an  examination  of  such
          rental history discloses that rent overcharge  occurred  based  on
          the finding that the owner was not entitled  to  a  major  capital
          improvement rent increase.  Docket Number 2AC-578151-89  cited  by
          the owner in his petition refers  to  a  rent  increase  for  rent
          controlled tenants only.   The  Commissioner  has  recomputed  the
          legal regulated rent from November 1, 1978 and amount of the  rent
          overcharge on the attached rent calculation chart.

          This order may, upon the expiration of the  period  in  which  the
          owner may institute a proceeding pursuant to  Article  78  of  the
          Civil Practice Law and Rules, be filed and enforced as a judgment.







          Any arrears owed by the tenant s a result of  this  order  may  be
          paid to the owner in twenty-four (24) monthly installments.  

          Should the tenant vacate, arrears shall be payable immediately.
          Because this  determination  concerns  lawful  rent  only  through
          September 14, 1987, the owner is cautioned  to  adjust  subsequent
          rents to an amount not greater than that determined by this  Order
          and Opinion and to register any adjusted rent with this Order  and
          Opinion being given as the explanation for the adjustment.


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

          ORDERED, that this petition be and the same hereby is, granted  in
          part, and the Rent Administrator's order be, and the  same  hereby
          is modified in accordance with this Order and Opinion.  The amount 
          of the overcharge through September 14, 1987 is $3.081.58.


          ISSUED:









          DOCKET NO. AJ-210062-RO
                                                                           
                                             ELLIOT SANDER
                                             Deputy Commissioner







                                               ADMINISTRATIVE REVIEW BUREAU
                                                COVERING MEMORANDUM


          ARB Docket No.:  AJ-210062-RO

          DRO Docket No/Order No.:  K-3105695-R

          Tenant(s): 

          Owner:  ISAAC WADE

          Code Section:  

          Premises:  2662 Ocean Avenue, Brooklyn, New York, Apartment 8-F


                        ORDER AND OPINION GRANTING PETITION FOR 
                              ADMINISTRATIVE REVIEW IN PART





          APPROVED:

          Processing Attorney:                                             

          Supervising Attorney:                                            

          Bureau Chief:                                                    

          Deputy Counsel:                                                  

          Deputy Commissioner:                                             


          Mailed copies of Order and Determination to:
                         Tenant(s)            
                         Owner                
                         Tenant's Atty.       
                         Owner's Atty.        


          Date:                    : by                                   
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