DOC. NO.: BH 610102-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 610102-RO
                       ALLERTON ASSOCIATES,  :   DRO DOCKET NO.
                                 PETITIONER  :         TC-079592-G


         On August 5, 1987, the above named petitioner filed a Petition for 
         Administrative Review against an order issued on July 2, 1987 by the 
         District Rent Administrator, 10 Columbus Circle, New York, New York, 
         10019, concerning the housing accommodations known as Apartment H-4, 
         2720 Bronx Park East, Bronx, New York, wherein the District Rent 
         Administrator determined that the tenant had been overcharged.

         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.

         The tenant commenced this proceeding by filing a complaint of general 
         rent overcharge 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 January 1, 1982 and expiring 
         December 31, 1982 at a monthly rental of $275.00 per month.

         The owner of record at the time the complaint was filed was served 
         with copies of the complaint and was requested to submit rent records 
         to prove the lawfulness of the rent being charged.  That owner failed 
         to provide a full rental history for the subject apartment.

         In the order appealed herein, the Administrator established the lawful 
         stabilization rent using the default procedure based on the prior 
         owner's failure to submit required rent records back to the base date 
         of June 30, 1974, set the lawful stabilization rent at $235.14 as of 
         December 31, 1984 through December 31, 1986 and ordered a refund of 
         the overcharges in the amount of $5433.73, including interest on that 
         portion of the overcharge occurring after April 1, 1984, and excess 

         DOC. NO.: BH 610102-RO

         In this petition, the present owner contends that the Administrator's 
         order is incorrect and should be reversed because it was never served 
         in this proceeding and had no opportunity to answer the overcharge 
         complaint.  Furthermore, the default rent computation contained in the 
         order states that computation method number 2 was being used, but in 
         actuality the calculation was based on another computation method.

         In answer to the petition, the tenant asserts that determination of 
         her proper rent should not be delayed any further.

         The Commissioner is of the opinion that this proceeding should be 
         remanded to the District Rent Administrator for further processing.

         A review of the record discloses that on February 13, 1986 the 
         Division was notified by the tenant that effective November 1, 1985 
         the premises were under new ownership.  Despite this notification, the 
         Division on July 21, 1986 sent a Final Notice of Pending Default to 
         the prior owner.  Because the Administrator was notified by the tenant 
         that there was a new owner, the Administrator was obligated to serve 
         notice on the new owner.  The Commissioner therefore finds that the 
         proceeding should be remanded to the Administrator to afford the 
         current owner an opportunity to respond to the tenant's overcharge 

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

         ORDERED, that this petition be and the same hereby is granted to the 
         extent of remanding this proceeding to the District Rent Administrator 
         for further processing in accordance with this order and opinion.  The 
         automatic stay of so much of the District Rent Administrator's order 
         as directed a refund is hereby continued until a new order is issued 
         upon remand.  However, the Administrator's determination as to the 
         rent is not stayed and shall remain in effect, except for any 
         adjustments pursuant to lease renewals, until the Administrator issues 
         a new Order upon remand.


                                            JOSEPH A. D'AGOSTA
                                            Deputy Commissioner

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