Docket Number: BL 410161 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

          APPEAL OF                               DOCKET NO.: BL 410161 RO

           1632-1638 SECOND AVE. REALTY CO.,
                                                  DRO DOCKET NO.: TA 10338



          On December 11, 1987, the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review of an order issued on September 
          10, 1987 by the District Rent Administrator, 10  Columbus  Circle,
          New York, New York  concerning  housing  accommodations  known  as
          Apartment 25 at 1632 Second Avenue, New York,  New  York,  wherein
          the District Rent Administrator determined the  fair  market  rent
          pursuant to the special fair market rent guideline promulgated  by
          the New York City Rent Guidelines Board  for  use  in  calculating
          fair market rent appeals.

          The owner asserts that the Administrator failed to serve the order 
          on the owner's attorney and that this  petition  is  timely  filed
          within  35  days  of  receipt  by  the  owner's  attorney  of  the
          Administrator's order.  The owner submits a copy of a letter  from
          the owner's attorney to the Division August 28, 1987 advising  the
          Division that the firm had been retained to  represent  the  owner
          and stating that, pursuant to a conversation with a Division staff 
          member, the owner's attorney was requesting an extension  of  time
          to answer.  Based on the  Administrator's  failure  to  serve  the
          order n the owner's attorney, owner's petition will be accepted as 
          timely filed.

          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  fair
          market rent appeal application 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 December 15, 1977 and expiring December 31,  1979
          at a monthly rent of $300.00


          Docket Number: BL 410161 RO

          During the pendency of the proceeding the tenant advised that  she
          had vacated the subject apartment and  that  the  last  month  for
          which she paid rent was March 1984 and that her  security  deposit
          was to be used for rent for April 1984.  The  tenant  submitted  a
          copy of a cancelled rent check for April 1984.

          The owner submitted a copy of a stipulation  dated  May  31,  1984
          whereby the tenant agreed to vacate the  apartment  on  or  before
          October 31, 1984 in consideration for payment  of  $20,000.00  and
          whereby rent was waived through the date of surrender of  keys  to
          the apartment.

          In Order  Number  CDR  31,389,  the  District  Rent  Administrator
          adjusted the initial legal regulated rent by establishing  a  fair
          market  rent  of  $223.50  effective  December   15,   1977,   the
          commencement date  of  the  initial  rent  stabilized  lease,  and
          directed the owner to refund to the tenant of excess rent  in  the
          amount of $6,387.58 for the period from December 15, 1977 to April 
          30, 1984.

          In this petition,  the  owner  contends  that  the  District  Rent
          Administrator failed to apportion the liability  for  excess  rent
          between the owner and the prior owner, although the  Administrator
          was aware of the prior owner by virtue of the tenant's  lease  and
          rent control records and the Administrator erroneously directed  a
          refund of excess rent through April 30, 1984 although  the  tenant
          paid no rent after November 1982.  The owner submits a copy  of  a
          stipulation dated November 17, 1982 wherein the tenant  agreed  to
          vacate the subject  apartment  on  or  before  July  31,  1983  in
          consideration for payment  of  $20,000.00  and  whereby  rent  was
          waived from November 1, 1982 to July 31,  1983.   The  owner  also
          asserts that the Administrator  failed  to  afford  the  owner  an
          opportunity to submit current comparable rents.  The owner further 
          asserts that the Administrator erroneously listed Rosemary  Nadler
          as the first  stabilized  tenant,  whereas  the  first  stabilized
          tenant was Barbara Nadler, her mother, and that the applicant  has
          submitted no evidence that she actually paid rent or that  she  is
          entitled to the refund owed her mother.

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

          Regarding the owner's assertion that the Administrator erroneously 
          directed a refund of excess rent through April 30,  1984  although
          the tenant paid no rent after November 1982, the  record  in  this
          case, including the cancelled rent check submitted by  the  tenant
          for the month of  March  1984  and  the  tenant's  statement  that
          security was applied for April  1984  rent,  and  the  stipulation
          dated  May  31,  1984,  indicates  that  the  November  17,   1982
          stipulation submitted by the owner, which required that the tenant 
          vacate the apartment by July 31, 1983, was not adhered to by the 

          Docket Number: BL 410161 RO

          parties, that the tenant paid rent through  April  30,  1984,  and
          that the Administrator properly directed a refund of  excess  rent
          through that date. 

          Regarding the owner's assertion that the Administrator  failed  to
          afford the owner  an  opportunity  to  submit  current  comparable
          rents, the record in this case indicates that by notice dated June 
          23, 1987 the owner  was  afforded  such  opportunity.   The  owner
          failed to respond to that notice.  Therefore this portion  of  the
          owner's petition is denied.

          Regarding the owner's assertion that the Administrator erroneously 
          listed Rosemary Nadler rather than Barbara Nadler as  the  tenant,
          the record in this case contains the following documentation as to 
          the tenancy  of  Rosemary  Nadler:   the  tenant's  initial  lease
          commencing December 15, 1977 listing Barbara Nadler  and  daughter
          Rosemary Nadler as  tenants,  a  lease  commencing  July  1,  1981
          listing Rosemary Nadler alone as the tenant, a rent bill  for  the
          month of August 1979 listing Rosemary Nadler as the tenant  and  a
          cancelled rent check signed by  Rosemary  Nadler  dated  March  1,
          1984.  Based on the evidence, the Commissioner finds  the  owner's
          assertion that Rosemary Nadler should not have been listed as  the
          tenant and was not entitled to the refund to be without merit.

          It is DHCR policy in fair market rent appeal cases  that,  in  the
          absence of evidence of  collusion  between  the  prior  owner  and
          current owner, the obligation  of  the  current  owner  to  refund
          excess rent is limited to such  rent  actually  collected  by  the
          current owner.

          The record  in  this  case  indicates  that  the  petitioner-owner
          purchased the subject building in February 1981.  The prior  owner
          is liable for $2,949.08, representing excess rent  collected  from
          December 15, 1977 to February 28,  1981.   This  order  is  issued
          without prejudice to the  tenant's  rights,  if  any,  to  proceed
          against the prior owner in a court of competent jurisdiction. 

          The petitioner-owner is liable for $3,349.00, representing  excess
          rent collected from March 1, 1981 to April 30, 1984.  The owner is 
          directed to refund this amount to the tenant.  The excess security 
          of  $89.50  included  in  the  Administrator's  order   has   been
          eliminated since the tenant has indicated that she has vacated the 
          apartment and her security deposit was applied  toward  the  April
          1984 rent.

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


          Docket Number: BL 410161 RO

          ORDERED, that this petition be and the same hereby is  granted  in
          part and the District Rent Administrator's order be and  the  same
          hereby is modified to the extent hereinabove indicated.


                                        ELLIOT SANDER
                                        Deputy Commissioner

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