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

          APPEAL OF                               DOCKET NO. ARL 12679 K

               JOSEPH SHAMAH                      DISTRICT RENT ORDER        
                                                  DOCKET NO. K 3102663 R   



               On August 8, 1986 the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          July 11, 1986 by the Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, NY concerning housing accommodations known as 1911 
          Dorchester Road, Brooklyn, NY, Apartment 2H.

               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 commmenced by the tenant 
          filing a complaint of rent overcharge.  The tenant took occupancy 
          pursuant to a lease commencing June 1, 1977 at a monthly rent of 

               In Order Number CDR 19,333, the Rent Administrator 
          established the lawful stabilized rent based on the prior owner's 
          failure to submit a complete rental history for the subject 
          apartment and directed a refund of $4,133.47, including interest 
          on overcharges collected after April 1, 1984, to the tenant.

               In this petition, the owner contends, in substance that it a 
          complete rental history was not available because the subject 
          premises was purchased by the prior owner in a forclosure 
          proceeding.  With the petition, the owner submits rent records 
          for the subject apartment dating from June 1, 1977.  

               In response to the petition, the tenant asserts, in 
          substance, that the Rent Administrator's order should be 

               The Commissioner is of the opinion that this 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 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 tht 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(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 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 Appeals in 61 Jane Street 
          Associated 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 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, 
               THEREFORE, in accordance with the provisions of the Rent 
          Stabilization Law and Code, it

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


                                                  ELLIOT SANDER
                                                  Deputy Commissioner



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