AK 110151 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

           APPEAL OF                              DOCKET NO.:AK110151RO
                                                     DRO DOCKET NO.: Q3119737R
                    WESTMORELAND ASSOCIATES,                      CDR 20,185

                                                  TENANT: DONNA GIALCOMBARDO


            On August 18, 1986, the above-named petitioner-owner filed a 
            Petition for Administrative Review against an order issued on July 
            23, 1986, by the Rent Administrator, 10 Columbus Circle, New York, 
            New York, concerning the housing accommodations known as 40-01 
            Little Neck Parkway, Little Neck, New York, Apartment No. 23B 
            wherein the Rent Administrator determined that the owner had 
            overcharged the tenant.

            The Administrative Appeal is being determined pursuant to the 
            provisions of Section 2526.1 of the Rent Stabilization Code.

            The issue here is whether the Rent Administrator's order was 

            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 by the filing in March 28, 
            1984 of a rent overcharge complaint by the tenant.

            In answer to the tenant's complaint, the owner stated in substance 
            that the subject apartment had been vacancy decontrolled on 
            December 21, 1976 under Docket No.  2DR 63925, and that it had 
            purchased the property in February, 1982 and submitted a rental 
            history from August 1, 1980.  The owner was asked to submit copies 
            of leases and/or rent ledgers for the period prior to August 1, 
            1980, but failed to do so.

          AK 110151 RO

            In Order Number CDR 20,185, the Rent Administrator determined that, 
            due to the owner's failure to submit a complete rental history, the 
            tenant had been overcharged in the amount of $7,893.40 and directed 
            the owner to refund such overcharge to the tenant as well as to 
            reduce the rent.

            In this petition, the owner contends in substance that it did not 
            default as it had submitted all the rent records it had at that 
            time.   The owner submits with its appeal various documents that it 
            has obtained from the prior owner since the order was issued, 
            including copies of the Landlord's Report of Statutory Decontrol, 
            a lease history and rent ledgers from 1977-1980.

            Although afforded the opportunity to do so, the tenant did not 
            reply to the petition.

            The Commissioner is of the opinion that this petition should be 

            Section 42A of the former Rent Stabilization Code requires that 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 DHCR 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 4 years prior to the most recent 
            registration, and concomitantly, established a 4 year limitation on 
            the calculation of rent overcharges.

            It has been the DHCR'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 DHCR 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 DHCR 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 DHCR, 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 

          AK 110151 RO

            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. Mgmt. 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 DHCR could not require an 
            owner to produce more than 4 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 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 DHCR 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 DHCR is constrained to follow the JRD 
            decision in determining the tenant's overcharge complaint, limiting 
            the requirement for rent records to April 1, 1980.  

            Since the owner did not submit a complete rent history from April 
            1, 1980 in the proceeding below, the Administrator correctly found 
            an overcharge.  Pursuant to Section 2529.6, an administrative 
            review is limited to facts or evidence before a Rent Administrator 
            as raised in the petition.  Since the owner has not established 
            that the evidence submitted with the appeal could not reasonably 
            have been offered in the proceeding below the Commissioner will not 
            consider the evidence submitted for the first time with the appeal.

            Based on the foregoing, a total overcharge of $7893.40 occurred 
            including excess security and interest on the overcharge occurring 
            on or after April 1, 1984.

          AK 110151 RO

            The owner is directed to reflect the findings and determinations 
            made in this order on all future registration statements, including 
            those for the current year if not already filed, citing this 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 this order.  The owner is further directed 
            to adjust subsequent rents to an amount no greater than that 
            determined by this order plus any lawful increases.

            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 in the same 
            manner as a judgment or not in excess of twenty percent per month 
            thereof may be offset against any rent thereafter due the owner.

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

            ORDERED, that this petition be and the same hereby is denied, that 
            the order of the Rent Administrator be, and the same hereby is, 

                                            JOSEPH A. D'AGOSTA
                                            Deputy Commissioner


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