DOC. NO.: AL 210450-RO

                        STATE OF NEW YORK
                           GERTZ PLAZA
                     92-31 UNION HALL STREET
                     JAMAICA, NEW YORK 11433

APPEAL OF                               DOCKET NO. AL 210450-RO
          825 OCEAN ASSOCIATES,     :   DRO DOCKET NOS.
                        PETITIONER  :             K-3105427-R
------------------------------------X             CDR 26078

                      ADMINISTRATIVE REVIEW

On December 10, 1986 the above named petitioner-owner filed a 
Petition for Administrative Review against an order of the Rent 
Administrator, 10 Columbus Circle, New York, New York issued 
November 6, 1986.  The order concerned housing accommodations 
known as Apartment 1F, located at 825 Ocean Parkway, Brooklyn, 
New York.  The Administrator determined that the tenant had been 

The Commissioner has reviewed the record and carefully 
considered that portion relevant to the issues raised by the 

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 tenant commenced this proceeding by filing a general rent 
overcharge complaint in which she indicated that she moved into 
the subject apartment on September 1, 1968.

The complaint was served on the owner along with a request for a 
complete rental history for the subject apartment from its base 
date.  The owner complied and submitted a complete set of leases 
dating from September 1, 1968.

The Administrator's order determined that the tenant had been 

          DOC. NO.: AL 210450-RO
          overcharged beginning with the tenant's first renewal lease which 
          commenced September 1, 1970.  The lawful rent was established at 
          $238.87 per month for the September 1, 1986 to August 31, 1988 
          lease term and the owner was directed to refund $1559.07 in total 
          overcharges including excess security and interest.

          On appeal, the petitioner, who states that it acquired the 
          property in 1985, argues that recomputation of rents charged 
          prior to April 1, 1980 is barred by statute and that upon 
          registration of the apartment an owner is not required to produce 
          or maintain more than four years of rental records.  The owner 
          also asserts that it is arbitrary to determine that a rent 
          charged more than fourteen years ago (1970) is unlawful when it 
          is impossible to verify the additional services and equipment 
          that may have validated a rent increase in addition to a 
          guidelines increase. 

          The owner also contends that the Administrator failed to include 
          supplementary adjustments for rents under $350 per month, and 
          that the rent established by the Administrator is so low that it 
          is less than the maintenance cost for the apartment which is now 
          a cooperative.

          The tenant's answer does not address the issues raised in the 

          After a careful review of the evidence in the record the 
          Commissioner is of the opinion that the petition should be 

          As Section 2526.1(a)(4) of the Rent Stabilization Code provides, 
          the Administrator properly determined the tenant's complaint in 
          accordance with the law and Code in effect at the time the 
          complaint was filed.  Section 42A of the former Rent 
          Stabilization Code required an owner to maintain and produce upon 
          demand complete rent records from the date the apartment become 
          subject to stabilization.

          Although the owner correctly states that the current law limits 
          an owner's obligation to provide rent records to not more than 
          four years prior to the most recent registration, it is 
          consistent with the legislative extent of the Omnibus Housing Act 
          (Chapter 403, Laws of 1983) to determine overcharge complaints 
          filed before April 1, 1984 in accordance with the law then in 
          effect 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 resolving the instant overcharge complaint, the Administrator 
          properly considered the documentation submitted by the owner 
          consisting of a complete set of leases.  Since the owner 
          fulfilled its statutory requirement of maintaining and producing 

          DOC. NO.: AL 210450-RO
          upon demand rent records dating back to 1968, any relevant 
          evidence regarding additional equipment or improvements would 
          also have been submitted, had there been any.  The owner has not 
          even asserted that there were additions warranting a rent 
          increase, but merely argues that it is impossible to determine 
          how a rent charged many years ago was computed.  Without any 
          additional information or supporting documentation, the rent must 
          be determined solely by application of appropriate guidelines 

          There is also no provision in either the current or former Rent 
          Stabilization Laws or Codes for establishing a lawful rent based 
          on the costs involved in maintaining an apartment.  The 
          percentage increases stated in the annual Rent Guidelines Board 
          Orders reflect the increased costs involved in the operation and 
          maintenance of residential apartment buildings.  Rents for 
          stabilized apartments are increased in accordance with these 
          guidelines as leases are commenced or renewed and no additional 
          adjustment is allowed for apartments for which maintenance costs 
          exceed the lawful stabilized rent.

          Finally, a review of the Administrator's calculations reveals 
          that additional supplementary adjustments for low rents were 
          added when appropriate as in Guidelines Orders Number 16 and 17.

          THEREFORE, pursuant to the Rent Stabilization Law and Code, it is

          ORDERED, that this petition be, and the same hereby is, denied 
          and that the Rent Administrator's order be, and the same hereby 
          is, affirmed.


          Deputy Commissioner



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