BF 410240 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. BF 410240 RO
                                              :  DRO DOCKET NO. L-3114784-R
               LIMASSOL REALTY                   TENANT: MESNARD & O'HAYER

                                PETITIONER    : 
          ------------------------------------X 

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


               On June 19, 1987, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review against an order issued on June 
          4, 1987, by the Rent Administrator, 10 Columbus Circle, New  York,
          New York, concerning  the  housing  accommodations  known  as  310
          Bleecker Street, New York, New York, Apartment No. 1, wherein  the
          Rent Administrator determined that the owner had  overcharged  the
          tenant.

               The Commissioner notes that this proceeding was  filed  prior
          to April 1, 1984.  Sections 2526.1 (a) (4)  and 2521.1 (d) of  the
          Rent Stabilization Code (effective May  1,  1987)  governing  rent
          overcharge  and  fair  market  rent   proceedings   provide   that
          determination of these matters be  based  upon  the  law  or  code
          provisions  in  effect  on  March  31,  1984.   Therefore,  unless
          otherwise  indicated,  reference   to   Sections   of   the   Rent
          Stabilization Code (Code) contained herein  are  to  the  Code  in
          effect on April 30, 1987.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 42A of the former 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  tenants  who
          stated that they first moved to the subject apartment on August 1, 
          1983 at a rental of $1200.00 per month.

               The owner and prior owner were served  with  a  copy  of  the
          complaint and were directed to submit a  complete  rental  history
          for the subject apartment from the base date including  copies  of
          all leases.  The current owner submitted a copy  of  a  Report  of
          Statutory Decontrol showing the subject apartment was vacancy 








          BF 410240 RO

          decontrolled from the Rent Control Law on  January  18,  1974  and
          rerented on February 1, 1974.  The current  owner  also  submitted
          copies of leases for the subject apartment from March 1,  1978  to
          March 1, 1983 listing the tenant  during  such  period  as  Warren
          Colnaghi.  The current owner also submitted evidence showing  that
          Mr. Colnaghi was one of the partners of the prior owner and stated 
          that due to such factor, the  subject  apartment  was  destablized
          when the current owner purchased the subject premises in  November
          1983.  The prior owner did not submit any rental history  for  the
          subject apartment.  Subsequently, one of the tenants advised  that
          she had vacated the subject apartment.

               In Order Number CDR 30,504, the Rent Administrator determined 
          that due to the  owner's  failure  to  submit  a  complete  rental
          history, the owner had collected  a  rent  overcharge  of  $628.81
          through July 31, 1984, determined the  lawful  stabilization  rent
          was $1151.82 effective August 1, 1983, and directed the owner  and
          prior  owner  to  refund  that  portion  of  the  overcharge  each
          collected to the tenants.

               In this petition, the current  owner  contends  in  substance
          that  the  relevant  rent  history  it   submitted   showing   the
          destabilization of the subject apartment was  disregarded  by  the
          Rent Administrator.

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

               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 and  produce  them  to  the
          DHCR upon demand.  If the apartment was decontrolled from the Rent 
          Control  Law  after  June  30,  1974,  the  owner   must   provide
          satisfactory documentary  evidence  of  the  apartment's  date  of
          decontrol.

               In the instant case, the owner has not  provided  a  complete
          rental  history  as  mandated  by  Section  42A.   The  owner  has
          submitted leases only from March 1, 1978 although the base date in 
          this case was established as June 30, 1974. The fact that  one  of
          the partners of the prior owner was a tenant prior to occupancy by 
          the tenants herein does  not  serve  to  destabilize  the  subject
          apartment and excuse the current  owner  from  its  obligation  to
          submit a complete rental history.  An examination  of  the  leases
          with the prior partner and tenant Warren Colnaghi  discloses  that
          the last lease was for $1,151.82 and referred to Mr Colnaghi as  a
          tenant pursuant to the Rent  Stabilization  Law  -  obviously  the
          parties did not consider the arrangement as owner occupancy of the 
          subject apartment.  Accordingly, the  Rent  Administrator's  order
          establishing the lawful stabilization rent utilizing  the  Section
          42A default procedure and finding a rent overcharge was warranted.

               A copy of this order is being sent to the tenant now in 



          occupancy at the subject apartment.







          BF 410240 RO
               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



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                                          
                              
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