BG 210284 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 210284 RO

                SULZBERGER - ROLFE, INC.,        DRO DOCKET NO.: K 3105404 R/T

                                                 TENANT: ANDREA PATTERSON     
                                   PETITIONER    
          ------------------------------------X                             


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW



          On July 14, 1987, the above-named petitioner-owner filed a Petition 
          for Administrative Review against an order issued on June 10, 1987,  
          by the Rent Administrator, 10 Columbus Circle New York, New York   
          concerning the housing accommodations known as 2525 Nostrand Avenue 
          Brooklyn, New York, Apartment No. 3C, wherein the Rent 
          Administrator determined that the owner had overcharged the tenant.

          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 and a Fair Market Rent Appeal 
          (hereafter FMRA) by the tenant.

          In answer to the tenant's complaint, the prior owner stated in 
          substance that it was unable to locate a DC-1 or DC-2 Notice on the 
          subject apartment and advised the Rent Administrator that effective 
          January 11, 1985 the new management agent for the owner was 2525 
          Nostrand Owners Corp. P.O. Box 97 Vanderveer Station Brooklyn, New 
          York 11210.

          In Order Number CDR 30,408, the Rent Administrator determined that, 
          due to the owner's failure to submit a complete rental history, the 
          tenant had been overcharged in the amount of $6,723.64 including
          treble damages on the overcharge occurring on and after April 1, 
          1984 and named only the prior owner's agent, Sulzberger Rolfe Inc. 
          in the order.


          In this petition, the prior owner contends in substance that the 







          BG 210284 RO

          Rent Administrator's order should be revoked because although 
          advised of the transfer of ownership the Rent Administrator failed 
          to apportion the overcharge or name the new owner in the order; 
          that the Rent Administrator failed to utilize its own records to 
          determine that the subject apartment was previously rent 
          controlled; that it failed to consider the tenant's FMRA; that 
          treble damages were not warranted because the complaint was 
          originally filed with the Conciliation and Appeals Board (hereafter 
          CAB) which did not provide for treble damages and that Sulzberger- 
          Rolfe only owned the subject premises from April 20, 1983 through 
          January 11, 1985.

          In answer to the prior owner's petition, the tenant stated in 
          substance that the order was warranted and it appears both the 
          prior and current owners are liable.

          During the appeal, the Commissioner served a copy of the prior 
          owner's (Sulzberger-Rolfe) petition along with a copy of the order 
          appealed herein on the current owner (2525 Realty Co.) and afforded 
          the current owner opportunity to file an answer to the order or 
          submit additional evidence for consideration prior to the 
          determination of the prior owner's petition.

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

          An examination of the records in this case discloses that the prior 
          owner did advise the Rent Administrator of the transfer of 
          ownership and although the current owner was served, only the prior 
          owner was named in the order.  

          Moreover, during the appeal, upon first being served with a copy of 
          the Rent Administrator's order and the prior owner's petition, the 
          current owner submitted a copy of a letter from the tenant dated 
          March 26, 1987 indicating that subsequent to her purchase of the 
          subject apartment under the coop conversion plan but prior to the 
          issuance of the Rent Administrator's order on June 10, 1987, the 
          tenant had withdrawn the Fair Market Rent Appeal and overcharge 
          complaints filed in March 1984.

          The current owner contends that this letter was submitted to the 
          Rent Administrator on May 6, 1987 and in the absence of subsequent 
          correspondence from the Division of Housing and Community Renewal 
          (DHCR) the current owner had assumed the proceeding had been 
          terminated without further action by the Rent Administrator.

          The correspondence from the current owner was forwarded to the 
          tenant but was returned by the United States Postal Service (USPS) 
          as "moved-not forwardable".

          The Commissioner notes that the apparent existence of an effective 
          Cooperative Conversion plan in the subject premises as of June 28, 
          1985, currently renders the subject apartment exempt from the 
          jurisdiction of the Rent Stabilization Law.  
          Further the record reveals that the tenant withdrew her complaints 
          prior to the issuance of the Rent Administrator's order.

          Accordingly, the Rent Administrator's order was not warranted and 


          BG 210284 RO

          must be revoked.

          With regard to the prior owner's contentions that the overcharge 
          should be apportioned; that the Rent Administrator failed to 
          consider the tenant's FMRA or utilize its own records and that 
          treble damages were not warranted, these issues are now rendered 
          moot by the revocation of the Rent Administrator's order.

          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, granted, and that the order of the Rent 
          Administrator be, and the same hereby is revoked.



          ISSUED



                                                                      
                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner




                     








    

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