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

          APPEAL OF                              DOCKET NO. BF 210380 RO
                                              :  DRO DOCKET NO. K-3104943-R
               EAST REALTY                       TENANT: NAOMI LOPEZ

                                PETITIONER    : 

          IN PART

               On June 11, 1987, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review against an order issued on  May
          8, 1987, by the Rent Administrator, 10 Columbus Circle, New  York,
          New York, concerning the  housing  accommodations  known  as  1125
          Lorimer Avenue, Brooklyn, New York, Apartment No. 1C, wherein  the
          Rent Administrator determined that the owner had  overcharged  the

               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  in
          March 1984, of a rent overcharge complaint by the tenant in  which
          the tenant stated that she first moved to the subject apartment on 
          April 1, 1979 at a rental of $250.00 per month.

               In response to the tenant's complaint, the  owner  stated  in
          substance that it was appointed Receiver of the  subject  premises
          in April, 1978, and was not  able  to  submit  a  complete  rental
          history.  The owner submitted a rental history from March 1, 1977. 

               Under  docket  number  CDR  30240,  the  Rent   Administrator
          determined  that  a  rent  overcharge  of  $5610.69  had  occurred
          through March 31, 1986, based on the owner's failure to  submit  a
          complete rental history.

               In this petition and in a supplement to it, the owner alleges 
          in substance that it should not be penalized for  its  failure  to
          submit a complete rental history, but that the rental history from 
          March 1, 1977 should be utilized and when this is  done  it  shows
          that the tenant was overcharged in the amount of $5442.25  through
          BF 210380 RO

          March 31, 1988.

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

               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)  and  to  produce
          such records to the DHCR upon demand.

               Since  the instant  case  invovles  submission  of  a  rental
          history back to 1977  and  in  light  of  recent  court  decisions
          applicable  in  this  jurisdiction,  the  Commissioner  is  hereby
          granting the specific relief requested  by  the  petitioner.   The
          Commissioner deems it appropriate to utilize  the  rental  history
          supplied by the owner  in  determining  the  lawful  stabilization
          rents.  Accordingly, the Commissioner has recalculated the  lawful
          stabilization rents and the amount of the rent overcharge based on 
          the rental history from March 1, 1977.  The  lawful  stabilization
          rents and amount of the rent  overcharge  are  set  forth  on  the
          amended rent calculation chart attached hereto  and  made  a  part

               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

               This order may upon the expiration of the period in which the 
          owner may institute a proceeding pursuant to  Article  78  of  the
          Civil Practice Law and Rules, be filed and enforced as a  judgment
          or not in excess of twenty percent per month of the overcharge may 
          be offset against any rent thereafter due the owner.

               If  the  owner   has   already   complied   with   the   Rent
          Administrator's order and there are arrears due to the owner as  a
          result  of  the  instant  determination,  the  tenant   shall   be
          permitted  to  pay  off  the  arrears  in  twelve  equal   monthly
          installments.  Should the tenant vacate after the issuance of this 
          order or have already  vacated,  said  arrears  shall  be  payable

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

          BF 210380 RO

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, granted in part, and, that the  order  of  the
          Rent Administrator  be,  and  the  same  hereby  is,  modified  in
          accordance with this order and opinion.  The lawful  stabilization
          rents and the amount of the rent overcharge are established on the 
          attached chart which is fully made a  part  of  this  order.   The
          amount of the rent overcharge through March 31, 1986 is $4876.79. 


                                          ELLIOT SANDER
                                          Deputy Commissioner


                            ADMINISTRATIVE REVIEW BUREAU
                                 COVERING MEMORANDUM

          ARB Docket No.: BF 210380 RO

          DRO Docket No/Order No.: K-3104943-R

          Tenant(s): Naomi Lopez

          Owner: East Realty

          Code Section: 2526.1 of RSC

          Premises: 1125 Lorimer Avenue, Brooklyn, New York, Apt. 1C

          Order     and     Opinion     ranting     Petition     in     Part
               Petition granted in part to take into account rental  history
          submitted by the owner.


          Processing Attorney:                                             

          Supervising Attorney:                                            

          Bureau Chief:                                                    

          Deputy Commissioner:                                             

          Mailed copies of Order and Determination to:
                           Tenant's Atty             
                           Owner's Atty              

                           Date:              :  by               


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