DOCKET NUMBER: AL-210770-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 NUMBER: AL-210770-RO
                                               :
              MELVIN ZUCKERMAN,                :  D.R.O. DOCKET NO. K 3103805-R
                                               :                  
                                               :
                                   PETITIONER  :
          -------------------------------------X


          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN  PART

          The   above-named   petitioner-owner   filed   a   Petition   for
          Administrative Review against an order issued  on  September  15,
          1986 by the Rent Administrator, 10 Columbus Circle, New York, New 
          York,  concerning housing accommodations known as 222 Lenox Road, 
          Apartment No. 25, Brooklyn, New York.

          The tenant, Beverly Henry, who took  occupancy  on  February  10,
          1983 at a rent  of  $345.00  per  month,  filed  a  complaint  of
          overcharge on March 10, 1984.

          The order of the Rent Administrator appealed  herein  established
          an initial rent of $248.00 pursuant to default  procedures  based
          on the owner's failure to submit a complete  rental  history  and
          found total overcharges of $4,023.65, including interest, through 
          May 1, 1986.

          The petitioner, among other things,  has  urged  throughout  this
          proceeding that he is a receiver appointed in a federal  mortgage
          foreclosure proceeding as of  July  1,  1983  and  has  no  prior
          records.

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

          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 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 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 






          DOCKET NUMBER: AL-210770-RO
          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
          file 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 overcharge claims accrued more than  four  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 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 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.

          The instant record does contain a rental history going back prior 
          to April 1, 1980.  The owner cannot, therefore, be held  to  have
          defaulted in accord with the JRD ruling.

          Rents have been recalculated on the chart attached and made  part
          hereof.  No overcharge is found to exist.






          DOCKET NUMBER: AL-210770-RO

          If the owner has already complied with the Administrator's order, 
          the tenants in occupancy may pay any arrears  resulting  herefrom
          in 36 equal monthly installments.


          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 order of the Rent Administrator be, and the  same  hereby
          is revoked. 


          ISSUED:



                                                                           
                                             ELLIOT SANDER
                                             Deputy Commissioner







                                               ADMINISTRATIVE REVIEW BUREAU
                                                COVERING MEMORANDUM


          ARB Docket No.:  AL-210770-RO

          DRO Docket No/Order No.:  K 3103805-R

          Tenant(s): BEVERLY HENRY

          Owner:  MELVIN ZUCKERMAN

          Code Section:  9 NYCRR 2522.6

          Premises:  222 LENOX ROAD, APARTMENT 25, BROOKLYN, NY


          ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

          Pre April 1, 1984 overcharge complaint-default.

          Administrator's order revoked in accord with  JRD.   Petitioner  is  a
          receiver in federal mortgage foreclosure and alleges that  he  has  no
          records prior to appointment. 


          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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