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

          ------------------------------------X    S.J.R. No.: 774
          APPEAL OF                                DOCKET NO.ARL03517L
                                              :    DRO DOCKET NO.TA011667
              Time Equities, Inc.,                 CTA0224

                               PETITIONER     :    TENANT: David Spear


          On June 3, 1985, the above-named petitioner-owner filed a Petition 
          for Administrative Review against an order issued on May 1, 1985 by 
          the Rent Administrator concerning the housing accommodations known 
          as 221 West 82nd Street, New York, New York, Apartment 7-C wherein 
          the Rent Administrator determined the fair market  rent  for  the
          subject apartment.

          Subsequent thereto, the petitioner-owner filed a petition in  the
          Supreme Court pursuant to Article 78 of the Civil Practice Law and 
          Rules requesting that the "deemed  denial"  of  the  petitioner's
          administrative appeal  be  annulled.   The  proceeding  was  then
          remitted to the Division for consideration  of  the  petitioner's
          administrative appeal.

          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 issue in this appeal is whether the Rent Administrator's order 
          was warranted.
          The applicable sections of the Law are Section 26-513 of the Rent 
          Stabilization Law and Sections 2521.1(d) and 2522.3 of the current 
          Rent Stabilization Code.


          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.

          This proceeding was originally commenced by the filing in October 
          1983 of a Fair Market Rent Adjustment Application by the  tenant.
          Such application listed the owner  as  82nd  Broadway  Management
          Company.  The tenant stated that he took occupancy of the subject 
          apartment pursuant to a lease which commenced on February 1, 1983 
          at a rental of $1,500.00 per month.

          Subsequently, on September 26, 1984, Time Equities Inc. submitted 
          a response indicating that it "was the new owner of 221 West 82nd 

          In Order Number CTA 0224, the Rent Administrator  determined  the
          initial legal regulated rent by establishing a fair market rent of 
          $684.97 effective February 1, 1983, the date of commencement of the 
          initial lease of the tenant herein, directed that all renewal rents 
          be computed above this initial rent and further directed the owner 
          to refund total excess rent of $24,256.84 covering the period from 
          February 1, 1983  through  April  30,  1955.   The  Administrator
          determined the fair market rent on the basis of the average of the 
          special fair market rent guidelines order and the results of  the
          comparability study.  The Administrator in his order  listed  the
          owner as Time Equities, Inc..

          In this petition, Time Equities, Inc. alleges in  substance  that
          through a written instrument dated August 27, 1984, Time Equities, 
          Inc. assumed the burdens and benefits of a net lessee including the 
          right to collect rents and  the  obligation  to  bear  all  costs
          commencing July 1, 1984 and thereafter,  while  the  owner,  82nd
          Broadway Management  co.,  remains  responsible  for  obligations
          arising prior to July 1, 1984.  Therefore,  Time  Equities,  Inc.
          urges that the Rent Administrator's order should be  modified  to
          specifically apportion the obligation for refund of  excess  rent
          between 82nd Broadway Management Co. and Time Equities, inc.  and
          that Time Equities, Inc. should only have to refund that portion of 
          the excess rent actually collected by it.

          In answer to this petition, the tenant contends in substance that 
          Time Equities, Inc. as  the  managing  agent  for  82nd  Broadway
          Management Co. is responsible for refunding the entire excess rent 
          amount found against the owner.

          The Commissioner is of the opinion that this petition  should  be
          denied, and that the Rent Administrator's order should be modified.


          In a related proceeding, under Docket No. ARL08393L, Time Equities, 
          Inc. submitted the following documents, which consitute part of the 
          Division's record:

          a)   A contract of sale dated June 26, 1984 with 82nd Broadway 
               Management Co. being listed as the seller and 221  West
               82nd Street Equities  Group,  general  partnership  c/o
               Francis Greenburger, General Partner, 55  Fifth  Avenue
               being listed as the purchaser and the property being sold 
               listed as the subject premises herein.  In such contract 
               it was stated that "Time shall  be  of  essence  as  to
               Purchaser's  obligation  to  close  and  acquire  title
               hereunder by March 2,  1987"  and  that  "Purchaser  or
               Purchaser's designee (the "Managing Agent") and  Seller
               have contemporaneously herewith entered into a management 
               agreement (the "Management Agreement") whereby Seller has 
               employed and retained the Managing Agent,  between  the
               date hereof and the earlier of the Closing date, or such 
               date upon which this  contract  and/or  the  Management
               Agreement shall have been terminated  pursuant  to  its

          b)    A  Certificate  of   Amendment   of   Certificate   of
               Incorporation of T.C.C. Productions, Inc. dated July 9, 
               1969 amending the  name  of  the  corporation  to  Time
               Equities,  Inc.  and  listing  the  President  of   the
               Corporation as Francis Greenburger.
          c)   Copy of Management Contract dated June 26, 1984 between 
               82nd Broadway Management  Company  as  owner  and  Time
               Equities, Inc. as agent whereby owner appointed agent as 
               sole and exclusive renting and managing agent  for  the
               subject premises.

          d)   Copy of letter  dated  June  26,  1984  confirming  the
               parties' understanding of  the  Contract  of  Sale  and
               Management Agreement regarding  the  subject  premises.
               Such letter was signed by the general partner  of  82nd
               Broadway Management Company, the general partner of 221 
               West 82nd Street Equities Group (Francis Greenburger) and 
               the  President  of   Time   Equities,   Inc.   (Francis

          e)   Copy of Closing Statement  for  Contract  of  Sale  and
               Management Contract for the subject premises dated August 
               27, 1984.


          f)   Copy of a Power of Attorney form dated August 27,  1984
               whereby 82nd Broadway Management Co. made Time Equities, 
               Inc. the Managing Agent of the subject premises pursuant 
               to Management Agreement dated June 26, 1984. 

          g)   Letter dated December 12, 1986 amending the June 26, 1984 
               contract of sale of the subject premises changing amount 
               of purchase price and date of closing.

          h)   Copy of a deed signed by the Seller dated December  24,
               1986 conveying the subject premises from 82nd  Broadway
               Management Co. to 221-223 West 82nd Owner Co. 55  Fifth
               Avenue. c/o Time Equities, Inc.

          In proceedings involving fair market rent adjustments, where there 
          has been a transfer of ownership of a building, the policy of the 
          former Conciliation and Appeals Board (hereafter CAB) adopted  by
          the DHCR during the period in question provided that the obligation 
          of a new owner to refund excess rent was limited to  such  excess
          rent collected by it and could not be  extended  to  excess  rent
          collected by the prior owner in the absence of  evidence  of  any
          collusion between the new owner and  prior  owner.   Pursuant  to
          Policy Statement 93-1 promulgated August 20, 1993, in fair market 
          rent appeal cases where there has been a change of ownership, a new 
          owner is obligated to refund excess rent collected from April  1,
          1984.  In view of the  difficulties  encountered  by  tenants  in
          locating owners to whom rent payments are no longer made  and  in
          obtaining excess rent payments paid to such owners and in view of 
          the complicated, entangled  owner's  history  in  the  proceeding
          herein, the Commissioner is of the opinion that if an actual change 
          of ownership of the premises (transfer of title) has not occurred, 
          the owner (including a managing agent) currently  collecting  the
          rent is responsible for all refunds of excess rent.

          Therefore the question presented in this proceeding is whether an 
          actual change of ownership of the subject premises occurred as of 
          July 1, 1984 when Time Equities, Inc. first began collecting rents 
          at the subject premises.  The Commissioner is of the opinion that 
          no such change of ownership occurred.  A careful examination of the 
          record including the documentary evidence submitted on behalf  of
          Time Equities, Inc. discloses that  although  there  was  a  1984
          contract of sale, fee ownership of the subject premises was not 

          transferred from 82nd Broadway Management Company until at  least
          December 1986; that from July 1, 1984 to at least  December  1986
          Time Equities, Inc. acted in the capacity of managing  agent  for
          82nd Broadway Management  Company  with  regard  to  the  subject


          premises and that the period for which the tenant herein was found 
          to have paid excess rent was from February 1, 1983 through  April
          30, 1985.  The Commissioner finds that Time  Equities,  Inc.  was
          acting as the managing agent for  the  fee  owner  82nd  Broadway
          Management Co. and as such is responsible for  refunding  to  the
          tenant herein the full amount of the excess rent  collected  from
          February 1, 1983 through April 30, 1985.

          The Rent Administrator's order is hereby amended to reflect that as 
          regards the tenant herein, Time Equities, Inc. jointly responsible 
          with 82nd Broadway Management Company for  refunding  all  excess
          rent.  However, the Commissioner's order and  opinion  herein  is
          issued without prejudice to whatever rights, if any, Time Equities, 
          Inc. has against 82nd Broadway Management Company for the recovery 
          of that portion of the excess rent to be refunded to  the  tenant
          which was actually collected by 82nd Broadway Management Company- 
          the excess rent collected prior to July 1, 1984.

          CAB Opinion 6629, T/A 9909 issued on March 22, 1984 and cited  by
          Time Equities, Inc. in its peition, did not consider the question 
          of whether ownership of the subject premises had changed when Time 
          Equities, Inc. first began collecting rent.

          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.

          The owner is further directed  to  roll  back  the  rent  to  the
          stabilized rent consistent with this order and  opinion,  and  to
          refund or fully credit against future rents  over  a  period  not
          exceeding six months from the date of receipt of this order,  any
          rent  paid  by  the  tenant  herein  in  excess  of  the   lawful
          stabilization rent.

          In the event the owner herein, Time Equities  Inc.,  or  the  fee
          owner, 82nd Broadway Management does not take appropriate action to 
          comply with this order within 60 days from the date of issuance of 
          this order, the tenant may credit the excess rent against the next 
          month(s) rent until fully offset, or may seek to enforce this order 

          by  filing  an  appropriate  action  in  a  court  of   competent
          jurisdiction against either Time Equities, Inc., or 82nd Broadway 
          Management Corp. or both jointly for the return of the excess rent 
          of $24,256.84.


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

          ORDERED, that this petition be, and the same hereby is, denied and 
          the Rent Administrator's order be, and the same hereby is, modified 
          in accordance with this order and opinion.



                                                       JOSEPH A. D'AGOSTA
                                                       Deputy Commissioner


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