AJ 210329 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO.: AJ 210329 RO 
              BERSAM HOLDING CORP.,                DRO DOCKET NO.: TA 10992

                                                   TENANT: Yvette Salcedo

            On October 27, 1986, the above-named petitioner-prior owner filed a 
            Petition for Administrative Review of an order issued on September 
            22, 1986 by the District Rent Administrator, 10 Columbus Circle, New 
            York, New York, concerning housing accommodations known as Apartment 
            C9 at 3620 Bedford Avenue, Brooklyn, New York, 
            wherein the District Rent Administrator determined the fair market 
            rent pursuant to a comparability study and the special fair market 
            rent guideline promulgated by the New York City Rent Guidelines 
            Board for use in calculating fair market appeals.  

            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.

            The proceeding was originally commenced by the filing of a fair 
            market rent appeal by the tenant with the New York City 
            Conciliation and Appeals Board, one of the predecessor agencies to 
            the Division of Housing and Community Renewal.

            In Order Number CDR 22,819, the District Rent Administrator 
            adjusted the initial legal regulated rent by establishing a fair 
            market rent of $310.30 effective November 1, 1982, the 
            commencement date of the initial rent stabilized rent.

            In this petition, the prior owner asserts that in calculating the 
            fair market rent, the Administrator failed to include an allowance 
            for the new kitchen equipment, including refrigerator and range, 
            installed immediately prior to the tenant's occupancy and listed 
            on "Schedule B" filed with the prior owner's original answer.

          AJ 210329 RO

            The tenant did not submit an answer to this petition.

            The Commissioner is of the opinion that this petition should be 

            Section 20C(1) of the Code provides that where there has been an 
            installation of new equipment in a stabilized apartment, the 
            monthly stabilization rent for said unit may be increased by 
            1/40th the cost of such equipment provided the tenant then in 
            occupancy has consented thereto in writing.  In addition, the 
            courts have ruled that an increase for new equipment installed 
            during a vacancy prior to the commencement of a new tenancy or 
            upon the commencement of a new tenancy and reflected in the lease 
            rent, may be collected without the new tenant's consent to pay 
            such increase.  (Matter of LeHavre Corp. v. Gribetz, et. al., 
            N.Y.L.J. January 20, 1971, p.19, col.8 (Sup. Ct., Queens Co., 
            Crisona, J.); Matter of Morton I. Hamberg v. CAB, N.Y.L.J., 
            November 9, 1972, p.18, col.8 (Sup. Ct., N.Y. Co. Sarafite, J.)).

            The record in this case indicates that the prior owner submitted 
            documentation of the installation of a new refrigerator and range 
            at the commencement of the tenancy indicating a total cost for 
            these 2 items of $604.62, but that the Administrator failed to 
            consider such documentation.  By notice dated November 5, 1990, 
            the tenant was afforded an opportunity to respond to the prior 
            owner's submission of documentation.  The tenant failed to 
            respond.  The Commissioner therefore finds that an increase for 
            these improvements should be included in the fair market rent.

            The fair market rent for the tenant's initial lease commencing 
            November 1, 1982 and expiring October 31, 1984 is established at 
            $325.42 [$310.30 plus $15.12 (1/40th of $604.62)].  The lawful 
            stabilized rent for the tenant's renewal lease commencing November 
            1, 1984 and expiring October 31, 1986 is established at $354.71 
            ($325.42 plus Guidelines 16 increase of 9% for a two year renewal 
            lease).  The total amount of excess rent for the period from 
            November 1, 1982 to August 31, 1986, including excess security, is 

            It is the DHCR's policy for fair market rent appeal cases that, in 
            the absence of evidence of any collusion between the present owner 
            and the former owner, an owner will be held responsible for excess 
            rent actually collected by it.

            In response to a notice from the DHCR, the prior owner advised 
            that title was transferred from the prior owner on May 3, 1983 and 
            the prior owner last collected rent from the tenant April 4, 1983.

          AJ 210329 RO

            The prior owner (Bersam Holding Corp.) is directed to refund to 
            the tenant $147.48, representing excess rent for the period from 
            November 1, 1982 to April 30, 1983.  This order is issued without 
            prejudice to the tenant's rights, if any, to proceed against the 
            former owner in a court of competent jurisdiction.

            The current owner (3620 Realty Co.) is directed to refund to the 
            tenant $1,058.61, representing excess rent for the period from 
            May 1, 1983 to August 31, 1986 plus excess security.

            The current owner is directed to roll back rent to the lawful 
            stabilized rent consistent with this decision and to refund or 
            fully credit against future rents over a period not exceeding six 
            months from the date of receipt of this order, the excess rent 
            collected by the current owner.

            In event the current owner does not take appropriate action to 
            comply within 60 days from the date of this order, the tenant may 
            credit the excess rent paid to the current owner against the next 
            month(s) rent until fully offset.

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

            ORDERED, that this petition be and the same hereby is granted and 
            the District Rent Administrator's order be and the same hereby is 
            modified to the extent hereinabove indicated.


                                            JOSEPH A. D'AGOSTA
                                            Deputy Commissioner


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