BD 610442-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 NO.:
                                        BD 610442-RO
       CAPITAL HOLDING CO.,             DISTRICT RENT
                                        ADMINISTRATOR'S DOCKET
NO.:
                        PETITIONER      18184
----------------------------------x


  ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
    IN PART AND MODIFYING DISTRICT RENT ADMINISTRATOR'S ORDER
                                
                                
On  April  28,  1987,  the above-named petitioner-owner  filed  a
Petition  for  Administrative Review against an order  issued  on
March  27,  1987 by the District Rent Administrator, 10  Columbus
Circle,  New  York,  New York, concerning housing  accommodations
known as Apartment ST/NE at 3006 Decateur Avenue, Bronx, New York
wherein  the  Administrator determined that the tenant  had  been
overcharged.

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 on July 24, 1984 by the filing  of
an  objection  to  the  apartment  registration  by  the  tenant,
claiming that the rent being paid was an overcharge.  The  tenant
took  occupancy pursuant to a lease commencing April 1, 1983  and
expiring March 31, 1986 at a monthly rent of $390.00.

In  the  order under appeal herein, the Administrator  determined
that  the  tenant had been overcharged in the amount of $1,501.19
for  the period from April 1, 1983 to March 31, 1986 and directed
the refund of such amount to the tenant.

In  this petition, the owner contends that it took title  to  the
subject building on August 14, 1986 and the Administrator's order
should be modified to indicate that the owner is only liable  for
overcharges from that date.

In  answer  to  this petition, the tenant contends,  among  other
things,  that he is entitled to a refund of the total  amount  of
the overcharge.

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

Section 2526.1(f) of the current Rent Stabilization Code pro-
vides, in pertinent part, that:

          1.for  overcharges  collected prior  to  April  1,
          1984,  an owner will be held responsible only  for
          his  or  her  portion of the overcharges,  in  the
          absence  of collusion or any relationship  between
          such owner and any prior owner; and
          
          2.for  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.
          
An  examination  of the rental history for the subject  apartment
reveals  that  the subject premises was conveyed from  the  prior
owner,  the Estate of Manuel Ribler and Phylis Ribler, to another
prior  owner, John and Briget Warren, on September 30,  1983  and
was  thereafter  conveyed from the prior owner  John  and  Briget
Warren  to the current owner, Capital Holding Co., on August  14,
1986.   Although  the  current owner first acquired  the  subject
premises  on  August  14,  1986,  it  is  jointly  and  severally
responsible with the second prior owner (John and Briget  Warren)
for  the  overcharges occurring from April 1, 1984 to August  14,
1986  and thereafter individually responsible for the overcharges
occurring  from August 14, 1986.  This finding is without  preju-
dice  to  any action that the current owner may have against  the
second  prior  owner  (John and Briget  Warren)  for  overcharges
reimbursed  by  the  current owner which the second  prior  owner
collected.

The  Administrator  calculated a total amount of  overcharges  of
$1,501.19  for the period from April 1, 1983 to March  31,  1986.
The liability for this amount is allocated as follows:

          -The first prior owner (Estate of Manuel L. Ribler
          and Phylis Ribler) is responsible for refunding  a
          total  overcharge  of  $235.86  -  the  amount  of
          overcharge  occurring  from  April  1,   1983   to
          September 30, 1983;
          
          
          -The  second prior owner (John and Briget  Warren)
          is responsible for refunding a total overcharge of
          $235.86 - the amount of overcharge occurring  from
          September 30, 1983 to March 31, 1984; and
          
          -The  second prior owner (John and Briget  Warren)
          and  the  current owner (Capital Holding Co.)  are
          jointly and severally liable for refunding a total
          overcharge  of  $1,029.47 - the  amount  of  over-
          charges occurring from April 1, 1984 to March  31,
          1986, including interest.
          
Because  this  determination concerns lawful rents  only  through
March 31, 1986, the owner is cautioned to adjust subsequent rents
to  an amount no greater than that determined by this order  plus
any  lawful  increases, and to register any adjusted  rents  with
this  order  and opinion being given as the explanation  for  the
adjustment.


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

ORDERED, that this petition be and the same hereby is granted in
part and that the District Rent Administrator's order be and the
same hereby is modified to the extent hereinabove indicated.


ISSUED:




ELLIOT SANDER
                                         Deputy Commissioner