BG 210218 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. BG 210218 RO
                                              :  DRO DOCKET NO. T/A 9541,
          HERBERT SILVER AND SALLY FRISHBEFG                    K-3101731-RT
                                                 TENANT: LAURA CASIANO
                                PETITIONER    : 
          ------------------------------------X 

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


               On July 10, 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, New  York,
          New York, concerning the housing accommodations known as 523 Fifth 
          Avenue, Brooklyn , New York, Apartment No. 1L,  wherein  the  Rent
          Administrator determined the fair  market  rent  pursuant  to  the
          special fair market rent guideline promulgated  by  the  New  York
          City Rent Guidelines Board for use in calculating fair market rent 
          appeals.

               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 2521.1 of  the  current  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  of  a
          fair market rent appeal by the tenant in March 1984.   The  tenant
          took occupancy pursuant to a lease commencing October 1, 1974 at a 
          monthly rent of $225.00.  In such proceeding, it  was  established
          that the owner herein first took title to the subject premises  on
          October 9, 1979.

               







          BG 210218 RO


               In the order under  appeal  herein,  the  Rent  Administrator
          adjusted the initial legal regulated rent by establishing  a  fair
          market rent of $166.37 effective October 1, 1974, found  that  the
          tenant had paid excess rent including  excess  security  totalling
          $9596.34 through May 30, 1987 and directed the  owner  herein  and
          the prior owner to refund that portion of the excess rent each had 
          collected.

               In this petition, the owner contends in  substance  that  the
          Rent Administrator should have specifically apportioned the excess 
          rent between itself and the prior owner.

               In answer to the petition, the  tenant  stated  in  substance
          that the Rent Administrator's order is  clear  enough  in  stating
          that each owner is responsible for refunding that portion  of  the
          excess rent each collected.

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

               It is the DHCR's policy in fair market rent appeal cases that 
          an owner will be held responsible only for its own portion of  the
          excess rent in the absence of evidence of  any  collusion  between
          the present owner and the former owner.  To  clarify  matters  for
          the parties the Rent Administrator's order is modified as follows: 
          The prior owner (Joseph Mitchell) is directed  to  refund  to  the
          tenant $2924.99 representing  excess  rent  for  the  period  from
          October 1, 1974 to October 30, 1979.  This order is issued without 
          prejudice to the tenant's rights, if any, to proceed  against  the
          prior owner in a court of  competent  jurisdiction.   The  current
          owners (Herbert Silver and Sally Frishberg) are directed to refund 
          to the tenant $6671.35 representing excess  rent  for  the  period
          from November 1, 1979 to May 30, 1987 plus excess security.

               The current owners are directed to roll back the rent to  the
          stabilized rent consistent with this decision  and  to  refund  or
          fully credit against future rents over a period not exceeding  six
          months from the date of receipt of this  order,  the  excess  rent
          collected by the current owners.

               In the event the  current  owners  do  not  take  appropriate
          action to comply within 60 days from the date of this  order,  the
          tenant may credit the excess rent collected by the current  owners
          against the next month(s) rent until fully offset.












               THEREFORE, in accordance with  the  provisions  of  the  Rent






          BG 210218 RO
          Stabilization Law and Code, it is

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, granted, and,  that  the  order  of  the  Rent
          Administrator be, and the same hereby is, modified to  the  extent
          hereinabove indicated.

          ISSUED



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                                                    
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