BA 410219 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



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          IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW         
                               APPEAL OF                               DOCKET 
          NO.:  BA 410219 RO

            PERRY AND DONNA GOLKIN-TENANT,
                                              DRO DOCKET NO.:  TC 69848 G
                                              ORDER NO.: CDR 28,028, AS AMENDED
                                  PETITIONER
          ----------------------------------X                                   


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE APPEAL


          On January 13, 1987 the above-named petitioner filed a Petition 
          for Administrative Review against an order issued on December 9, 
          1986 by the Rent Administrator, 10 Columbus Circle, New York, New 
          York concerning the housing accommodation known as 445 East 86th 
          Street, Apartment 12-I, New York, New York wherein the  
          Administrator directed the current owner to roll back the rent 
          and to refund rent paid in excess of the lawful stabilization 
          rent.

          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.

          The tenant commenced this proceeding on February 17, 1983 by 
          filing a complaint of rent overcharge with the former New York 
          City Conciliation and Appeals Board (CAB), the predecessor to the 
          Division of Housing and Community Renewal (DHCR).  The tenant 
          stated that he had commenced occupancy of the subject apartment 
          on May 1, 1978 pursuant to a three year lease at a monthly rent 
          of $540.00.

          On February 28, 1983, a copy of the complaint was served on the 
          current owner, along with a demand for a complete rental history 
          of the subject apartment.


















          BA 410219 RO
          On March 22, 1983, the current owner responded in essence that 
          since it did not take title to the subject building until 
          October 15, 1982 at which time the building converted to 
          cooperative ownership and the complainants purchased their 
          apartment, it was not responsible for any overcharges collected 
          to that time.  The owner advised the CAB of the names 
          of the prior owners-the owner named on the original lease, 445 
          East 86th Street Company and the sponsor of the Co-Op plan, 445 
          East 86th Street Associates. The owner did not submit a rental 
          history.

          On December 9, 1986, the Administrator issued the order here 
          under review, finding that an overcharge in the amount of 
          $4,053.44 had been collected through October 15, 1982 at which 
          time the subject premises converted to Co-Op status.  Pursuant to 
          the order the current owner's liability was limited to such rent 
          as actually collected by the former (sic) owner and the tenant 
          was advised to pursue the overcharge claim against the prior 
          owners in a court of competent jurisdiction.

          In its appeal, the owner seeks to modify the Administrator's 
          order to clarify and to make explicit that the current owner, the 
          cooperative apartment corporation is not liable for the 
          overcharges.

          In answer, the tenant asserts that the order clearly states that 
          the full refund is due from the current owner.

          In reply, the owner contends that the CAB's policy which was 
          continued by the DHCR was to hold each owner responsible for 
          its respective part in the overcharge and to direct the tenant 
          to court to recover overcharges from former owners.  Any 
          ambiguity in the order, the owner suggests, may be the result of 
          clerical error.

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






          BA 410219 RO









          BA 410219 RO
          The CAB's policy, in the absence of collusion, held a current 






          BA 410219 RO
          owner responsible only for those overcharges it actually 








          BA 410219 RO
          collected.  Under the new Code this policy is followed when both 






          BA 410219 RO
          of the following conditions are met:  (1)  the complaint was 








          BA 410219 RO
          filed prior to April 1, 1984 and (2) the overcharges were 






          BA 410219 RO
          collected before that date.  Accordingly, the Commissioner hereby 








          BA 410219 RO
          modifies the Administrator's order to read as follows on page 2, 






          BA 410219 RO
          paragraph 4.








          BA 410219 RO







          BA 410219 RO
The Rent Stabilization Law provides for complaints 








          BA 410219 RO
filed before April 1, 1984 that in the absence of 






          BA 410219 RO
evidence of any collusion between the present owner and 






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the former owner, the obligation of the present owners 






          BA 410219 RO
to refund overcharges collected prior to April 1, 1984 






          BA 410219 RO
is limited to such overcharges actually collected by 






          BA 410219 RO
the present owner.






          BA 410219 RO







          BA 410219 RO
          Since the Rent Administrator determined that no overcharge had 






          BA 410219 RO
          been collected since October 15, 1982, the current owner, 445/86 






          BA 410219 RO
          Owners Corporation, is not liable for any overcharges.






          BA 410219 RO







          BA 410219 RO
          This order is issued without prejudice to the tenant's right to 






          BA 410219 RO
          pursue the claim of overcharge against the prior owners in a 






          BA 410219 RO
          court of competent jurisdiction.






          BA 410219 RO







          BA 410219 RO
          THEREFORE, in accordance with the Rent Stabilization Law and 






          BA 410219 RO
          Code, it is






          BA 410219 RO







          BA 410219 RO
          ORDERED, that this petition be, and the same hereby is, granted 






          BA 410219 RO
          and Rent Administrator's order be, and the same hereby is, 






          BA 410219 RO
          modified in accordance with this Order and Opinion.






          BA 410219 RO







          BA 410219 RO







          BA 410219 RO







          BA 410219 RO







          BA 410219 RO
          ISSUED:






          BA 410219 RO
          ------------------------






          BA 410219 RO
          ELLIOT SANDER






          BA 410219 RO
          Deputy Commissioner






          BA 410219 RO
           
    

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