Docket No. BH 210195-RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO.: BH 210195-RO
             2525 REALTY CO.,                    DRO DOCKET NO.: TC-047557-G

                                                 TENANT: Brenda Jones and
                                PETITIONER         Warren McGill

          On August 12,  1987,  the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review against an order issued on July 
          8, 1987, by the District Rent Administrator, 10  Columbus  Circle,
          New York, New York, concerning  housing  accommodations  known  as
          Apartment 4D, 2525 Nostrand Ave., Brooklyn, New York, wherein  the
          District Rent Administrator determined that the  tenant  had  been

          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  rent
          overcharge  complaint  by  the  tenant  with  the  New  York  City
          Conciliation and Appeals Board, one of the predecessor agencies to 
          the  DHCR.   The  tenant  took  occupancy  pursuant  to  a   lease
          commencing June 1, 1980 and expiring May 31,  1982  at  a  monthly
          rent of $400.00.

          In Order  Number  TC-047557-G,  the  District  Rent  Administrator
          determined that the owner had failed  to  provide  a  full  rental
          history for the subject apartment, set the lawful stabilized  rent
          at $290.38 as of June 1, 1980 through May 31, 1982 and  ordered  a
          refund of the overcharges in the amount of $2,192.40  plus  excess
          security of $109.62.

          In this petition,  the  owner  contends  that  the  District  Rent
          Administrator's Order is incorrect and should be modified  because
          the  petitioner  purchased  the  building  in  1985  whereas   the
          overcharge complaint was filed in 1980;  and  that  it  was  never
          served with a copy of the complaint.

          In answer to this petition, the tenant  contends  that  the  order
          should be upheld.

          Docket No. BH 210195-RO

          The Commissioner is of the opinion that this  petition  should  be

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

          Section 26-516 of  Rent  Stabilization  Law,  effective  April  1,
          1984, limited an owner's obligation to  provide  rent  records  by
          providing that an  owner  may  not  be  required  to  maintain  or
          produce rent records for more than  4  years  prior  to  the  most
          recent registration,  and  concomitantly,  established  a  4  year
          limitation on the calculation of rent overcharges.

          It has been the DHCR's policy  that  overcharge  complaints  filed
          prior to April 1, 1984 are to be processed pursuant to the law  or
          Code in effect on March 31, 1984.  (See  Section  2526.1(a)(4)  of
          the current Rent Stabilization  Code.)   The  DHCR  has  therefore
          applied Section 42A of the former Code  to  overcharge  complaints
          filed prior to April 1, 1984, requiring complete rent  records  in
          these cases.  In following this policy, the DHCR has sought to  be
          consistent with the legislative intent of the Omnibus Housing  Act
          (Chapter 403, Laws of 1983), as implemented by the New  York  City
          Conciliation and Appeals Board (CAB), the  predecessor  agency  to
          the DHCR, to determine rent overcharge complaints filed  with  the
          CAB prior to April 1, 1984 by applying the law in  effect  at  the
          time such complaints were filed so as not to deprive such  tenants
          of their right to have the lawful stabilized rent determined  from
          the June 30, 1974 base date and  so  as  not  to  deprive  tenants
          whose overcharge claims accrued more than 4 years prior  to  April
          1, 1984 of their right  to  recover  such  overcharges.   In  such
          cases, if the owner failed to produce the required  rent  records,
          the lawful stabilized rent would be  determined  pursuant  to  the
          default procedure approved by the Court  of  Appeals  in  61  Jane
          Street Associates v. CAB, 65 N.Y.2d 898, 493 N.Y.S.2d 455 (1985).

          However, it has recently been held in the case of J.R.D.  Mgt.  v.
          Eimicke, 148 A.D.2d 610, 539 N.Y.S.2d  667  (App.  Div.  2d  Dep't
          1989), motion for leave to reargue or for leave to appeal  to  the
          Court of Appeals denied (App. Div. 2d Dep't,  N.Y.L.J.,  June  28,
          1989, p.25, col. 1), motion for leave to appeal to  the  Court  of
          Appeals denied (Court of Appeals, N.Y.L.J., Nov. 24, 1989, p.  24,
          col. 4), motion for leave to reargue  denied  (Court  of  Appeals,
          N.Y.L.J., Feb 15, 1990, p. 25, col. 1), that the law in effect  at
          the time of the  determination  of  the  administrative  complaint
          rather than the law in effect at the time of  the  filing  of  the
          complaint must be applied and that the DHCR could not  require  an
          owner to produce more than 4 years of rent records.

          Docket No. BH 210195-RO

          Since  the  issuance  of  the  decision  in  JRD,  the   Appellate
          Division, First Department, in the case of Lavanant v.  DHCR,  148
          A.D. 2d 185, 544 N.Y.S.2d 331 (App.  Div.  1st  Dep't  1989),  has
          issued a decision in direct conflict  with  the  holding  in  JRD.
          The Lavanant court expressly  rejected  the  JRD  ruling,  finding
          that the DHCR may properly require an  owner  to  submit  complete
          rent records, rather than records for just four  years,  and  that
          such requirement is both rational and supported  by  the  law  and
          legislative history of the Omnibus Housing Act.

          Since in the instant case the subject dwelling unit is located  in
          the Second Department, the DHCR is constrained to follow  the  JRD
          decision  in  determining  the  tenant's   overcharge   complaint,
          limiting the requirement for rent records to April 1, 1980.

          The record reveals that the prior owner provided copies of  leases
          from February 1, 1979 through May 31, 1982.   The  rental  history
          submitted conforms to the JRD ruling.  Recalculation of  the  rent
          from April 1, 1980 indicates that the tenant was not overcharged.

          If the owner has already complied with the  Administrator's  Order
          and, as a result of the instant determination, there  are  arrears
          due to the owner from the tenant,  the  tenant  may  pay  off  the
          arrears in twenty-four equal monthly installments during the  next
          twenty-four months.  Should the tenant vacate after  the  issuance
          of this Order, all arrears are due immediately.

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

          ORDERED, that this petition be, and the same hereby is granted and 
          the District Rent Administrator's order be and the same hereby  is
          revoked, and it is determined that the tenant was not overcharged.


                                          ELLIOT SANDER
                                          Deputy Commissioner


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