BJ110304RO

                                  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 NO. BJ110304RO
                                              :  DRO DOCKET NO. 44968
               KINGSWOOD MANAGEMENT CO.          TENANT: P. DILILLO

                                PETITIONER    : 
          ------------------------------------X                             
             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


               On October 26, 1987, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          September 21, 1987, by the Rent Administrator, 10 Columbus Circle, 
          New York, New York, concerning the housing accommodations known as 
          21-48 35th Street, New York, New York, Apartment No. 3C, 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 herein is whether the Rent Administrator's order was 
          warranted.

               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 of a 
          Tenant Objection to Rent Registration in which the tenant stated in 
          substance that he first moved to the subject apartment on July 10, 
          1984, at a rental of $383.75 per month.  

               The owner was served with a copy of the tenant's objection and 
          directed to submit a rental history from April 1, 1980, or the date 
          the subject apartment first became subject to rent stabilization if 
          later.  In response, the owner stated in substance that it became 
          the new agent for the subject premises in April 1987 and had no 
          rental history prior to July 1, 1984.

               In Order Number 44968, 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 $3895.05 including 
          interest and directed the owner to refund such overcharge to the 
          tenant as well as to reduce the rent.

               In this petition, the owner alleges in substance that upon 
          information and belief, at the time the tenant filed his objection, 
          the subject building was not "in the hands of the petitioner" and 









          BJ110304RO



          the failure to serve the prior owner who had all relevant rent 
          records severely prejudiced the petitioner and that it was the duty 
          of the DHCR to serve the prior owner with notice of the tenant's 
          objection.

               The Commissioner is of the opinion that this petition should be 
          denied.

               Section 2526.1(f)(2) of the Rent Stabilization Code provides in 
          pertinent part that for overcharge complaints filed or overcharges 
          collected on or after April 1, 1984, a current owner shall be 
          responsible for all overcharge penalties, including penalties based 
          upon overcharges collected by any prior owner.

               In the instant case the overcharge complaint was filed after 
          April 1, 1984.  Accordingly, the owner herein is responsible for the 
          refund of the entire overcharge.  The failure to serve the prior 
          owner with a copy of the tenant's overcharge complaint does not 
          excuse the owner herein from its obligation to secure a complete and 
          accurate rental history from the prior owner and produce such rental 
          history to the DHCR upon demand.  Accordingly, the Rent 
          Administrator's order was warranted.  This order is issued without 
          prejudice to any action the owner herein may have against the prior 
          owner for the refund of any overcharge paid by the tenant to said 
          prior owner.

               The evidence of record indicates that the tenant has now moved 
          from the subject apartment and the subject apartment is now a 
          cooperative apartment.

               The Commissioner has determined in this Order and Opinion that 
          the owner collected overcharges of $3895.05.  This Order may, upon 
          expiration of the period for seeking review of this Order and 
          Opinion pursuant to Article Seventy-eight of the Civil Practice Law 
          and Rules, be filed and enforced as a judgment.  Where the tenant 
          files this Order as a judgment, the County Clerk may add to the 
          overcharge, interest at the rate payable on a judgment pursuant to 
          section 5004 of the Civil Practice Law and Rules from the issuance 
          date of the Rent Administrator's Order to the issuance date of the 
          Commissioner's Order.


















          BJ110304RO


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

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

          ISSUED



                                                                              
                                         JOSEPH A. D'AGOSTA
                                         Deputy Commissioner





                     




































    

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