BJ 130273 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

          APPEAL OF                               DOCKET NO.: BJ 130273 RO

                    JANET SPAFFORD,



          On October 1, 1987 the above-named petitioner  filed  a  Petition
          for Administrative Review against an order issued on September 3, 
          1987 by the Rent Administrator, 10 Columbus Circle, New York, New 
          York, concerning housing accommodations known as Apartment  1  at
          74-09 255th  Street,  Glen  Oaks,  New  York,  wherein  the  Rent
          Administrator determined that the tenant had been overcharged. 

          The applicable sections of law are Section  26-516  of  the  Rent
          Stabilization Law and Section 2526.1(a) of the Rent Stabilization 

          The Commissioner has reviewed all of the evidence in  the  record
          and has carefully considered that portion of the record  relevant
          to the issues 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 Division of Housing and  Community  Renewal  (DHCR).   The
          tenant took occupancy pursuant to a lease commencing September 1, 
          1977 and expiring August 31, 1979 a monthly rent of $319.06.

          The owner was served with a copy of the complaint and in response 
          submitted a rent history from May 16, 1977.  The owner  indicated
          that it was submitting all rent records it had available.

          In Order Number CDR 31,294,  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
          $5,864.72 and directed the owner to refund such overcharge to the 
          tenant as well as to reduce the rent.

          In its petition, the petitioner contends that  the  Administrator
          failed to consider the lease dated April 16, 1977 commencing  May
          16, 1977.  The petitioner also states that Poonsuk S.  Wejman  is
          the  owner  of  the  subject  premises,  and   Grenadier   Realty

          BJ 130273 RO
          Corporation is the managing agent.

          In answer to the owner's petition, the tenant asserts that he has 
          requested calculation of the rental history from  1968  and  that
          recalculating the rental history on the basis of the  1977  lease
          would violate the tenant's right to a full rental history.

          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.

          Since  the  issuance  of  the  decision  in  JRD,  the  Appellate

          BJ 130273 RO
          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.
          Accordingly, the Commissioner has examined the rent  records  for
          the subject apartment from May 16, 1977 and has  determined  that
          no rent overcharge  occurred.   The  tenant's  initial  rent  was
          $319.06.  It was increased by lawful guidelines  amounts  through
          the  tenant's  September  1,  1985  lease.  Therefore,  the  Rent
          Administrator's  order  determining  that  the  tenant  had  been
          overcharged must be revoked.

          If the owner has already complied with the Administrator's  order
          and there are arrears due to the owner as a result of the instant 
          determination, the tenant may pay off the arrears in twenty  four
          equal monthly installments.  Should the tenant vacate  after  the
          issuance  of  this  order,  said   arrears   shall   be   payable

          The Commissioner notes that for purposes of this  proceeding  the
          managing agent Grenadier Realty Corporation is properly named  as
          the owner since Section 2520.6(i) of the Rent Stabilization  Code
          includes a managing agent in the definition of an owner.

          THEREFORE, in accordance with the Appellate  Division  ruling  in
          JRD, it is

          ORDERED, that this petition be, and the same hereby is,  granted,
          and the order of the Rent Administrator be, and the  same  hereby
          is, revoked and it is found that no rent overcharge occured.

                                                  ELLIOT SANDER
                                                  Deputy Commissioner

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