BK 210014 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                             JAMAICA, NEW YORK    11433

          APPEAL OF                              DOCKET NO.: BK 210014 RO
                 2 WEST END REALTY COMPANY,
                                                D.R.O. DOCKET NO.: T/C 079779 G



          On November 13, 1987, the above named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          October 9, 1987, by the District Rent Administrator, 10 Columbus 
          Circle, New York, New York, concerning housing accommodations 
          known as Apartment 2G, 2 West End Avenue, Brooklyn New York, 
          wherein the District Rent Administrator determined that the 
          owner had overcharged the tenant.

          The issue in this appeal is whether the District Rent 
          Administrator's order was warranted.

          The applicable section of the law is Section 26-516 of the Rent 
          Stabilization Law.

          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 commenced on October 16, 1983 by the tenant's 
          filing of a rent overcharge complaint.  Along with her complaint, 
          the tenant submitted copies of her leases from August 1, 1978 
          through July 31, 1986.

          In Order Number CDR 31,556 issued October 9, 1987, the District 
          Rent Administrator determined that the owner had failed to 
          provide a full rental history for the subject apartment from the 
          base rent date, and accordingly established the lawful stabilized 
          rent as $244.90 (the last rent paid by the prior tenant).  The 
          Administrator further determined that the tenant had been 
          overcharged since August 1, 1978, and therefore directed the 

          BK 210014 RO

          owner to refund to the tenant $4,153.19 which included excess 
          security and interest on that portion of the overcharge occurring 
          on or after April 1, 1980.

          In this petition, the owner contends, inter alia, that the 
          District Rent Administrator's order is incorrect and should be 
          revoked because a full rental history was submitted from April 1, 
          1980, the base rent date for the subject apartment pursuant to 
          the Court's holding in J.R.D. Management Corp. v. Eimicke.

          In response, the tenant contends in substance that the 
          Administrator's order should be affirmed.

          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. 

          BK 210014 RO

          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 
          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.

          A review of the record in the instant case indicates that a 
          complete rental history for the subject apartment from August 1, 
          1978 (the commencement date of the complaining tenant's initial 
          lease) was submitted to the Administrator by the tenant when she 
          filed her complaint.  Accordingly, it was incorrect for the 
          Administrator to default the owner for failing to submit a full 
          rental history.

          Based on the foregoing, the Commissioner has recalculated the 
          lawful stabilization rents on the amended rent calculation chart 
          attached hereto and made a part hereof.  As shown on the chart, 
          the tenant has not been overcharged.

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

          BK 210014 RO

          hereby is, revoked.

          The lawful stabilization rents are established on the attached 
          chart which is fully made a part of this order.


          JOSEPH A. D'AGOSTA
          Deputy Commissioner

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