BF 410407 RO

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

          APPEAL OF                             DOCKET NO.: BF 410407 RO

                                                 DRO DOCKET NO.: L 3114546 RT
                KOPPEL'S REALTY CORPORATION,                     CDR 30,520
                                                 TENANT: ROBERT MONTAGNESE    


          On June 29, 1987 the above-named petitioner-owner filed a Petition 
          for Administrative Review against an order issued on June 5, 1987, 
          by the Rent Administrator, 10 Columbus Circle, concerning the 
          housing accommodations known as 595 West End Avenue, New York, New 
          York, Apartment No. 16D 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 Rent Stabilization Code.

          The issue herein is whether the Rent Administrator's order was 

          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 response to the tenant's complaint, and Fair Market Rent Appeal 
          (hereafter FMRA) the owner stated in substance that rental records 
          were lost in transit but that May 1, 1979 appears to be the date of 
          occupancy of the First Rent Stabilized tenant after vacancy 
          decontrol and submitted a rental history from May 1, 1979.

          BF 410407 RO

          The tenant disputed the owner's rental history and claimed that the 
          Apartment was decontrolled circa 1974.  The tenant provided the 
          names and approximate dates of occupancy of prior rent stabilized 

          In Order Number CDR 30,520, 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 $ 16,182.94 including 
          interest on that portion of the overcharge occurring on and after 
          April 1, 1984.

          In this petition, the owner contends in substance that the Rent 
          Administrator improperly defaulted the owner and ignored the prior 
          leases submitted from May 1, 1979 which the owner had maintained 
          was the base date; that the Rent Administrator failed to consider 
          the owner's explanation of the loss of rental records and the 
          owner's assertion that a complete rental history had been 

          In answer to the owner's petition, the tenant stated in substance 
          that the Rent Administrator's Order was warranted because the owner 
          had failed to submit complete rental records for the subject 
          apartment and the tenant is aware of rent stabilized tenants who 
          occupied the subject apartment prior to May 1, 1979.

          The Commissioner is of the opinion that this petition should be 

          Section 42A of the Rent Stabilization Code requires that an owner 
          retain complete records for each stabilized apartment in effect 
          from June 30, 1974 to date 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 and 
          submit a rental history from that date.

          A review of evidence in the Agency's files discloses that the 
          subject apartment was decontrolled prior to the date stated by the 
          owner (May 1, 1979).  The "Registration update work sheet (MBR 
          issued)" prepared in June 1974 by the owner listed the subject 
          apartment as decontrolled.  Furthermore, the owner did not list the 
          subject apartment as rent controlled on either the 1974-75 or 76-77 
          master building rent schedules filed with the Office of Rent 

          In the instant case, therefore the owner has not provided a 
          complete rental history from the date of decontrol as mandated by 
          Section 42A.

          In addition, although the owner failed to submit evidence that a 
          copy of the DC-2 notice of Initial Legal Regulated Rent was served 
          on either the 1st rent stabilized or subsequent stabilized tenant 
          as requested by the Rent Administrator, the rent Administrator was 
          precluded from processing the tenant's FMRA by the owner's failure 
          to submit the initial rent charged the 1st rent stabilized tenant.

          Accordingly, the Rent Administrator's order establishing the lawful 

          BF 410407 RO

          stabilization rent utilizing the Section 42A default procedure and 
          finding a rent overcharge was warranted.

          Because this determination concerns lawful rents only through March 
          14, 1986, the owner is cautioned to adjust subsequent rents to an 
          amount no greater than that determined by the Rent Administrator's 
          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 in the same 
          manner as a judgment or not in excess of twenty percent per month 
          thereof may be offset against any rent thereafter due the owner.

          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.


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner


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