BL 410305 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 410305 RO

                       BARRY MARK,                DISTRICT RENT ADMINISTRATOR'S
                                                  DOCKET NO. L-3117617-R

                                  PETITIONER      TENANT:  MARK WOLFF

                                       IN PART

          On December 4, 1987, the above-named owner filed a petition for 
          administrative review of an order issued on November 16, 1987 by 
          a District Rent Administrator concerning the housing 
          accommodation known as Apartment 3B, 346 East 19th Street, New 
          York, New York, wherein the 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 issues raised by the petition for review.

          The tenant filed a complaint of rent overcharge, dated February 
          27, 1984, with the New York City Conciliation and Appeals Board 
          (CAB), the agency formerly charged with enforcement of the Rent 
          Stabilization Law.

          On April 1, 1984, responsibility for the administration of rent 
          stabilization in New York City was transferred to the New York 
          State Division of Housing and  Community Renewal (DHCR).

          The tenant commenced occupancy on April 15, 1983 pursuant to a 
          one year lease, expiring on April 14, 1984, at a monthly rent of 

          In the order here under review, the Administrator found that the 
          owner submitted a full rental history, and found total 
          overcharges in the amount of $2,607.86, including excess security 

          BL 410305 RO

          and accrued interest from April 1, 1984.

          In his petition for review, the owner asserts that the prior 
          tenant had agreed to a rent increase with the prior owner, Joseph 
          Delorenzo, for certain improvements to the subject apartment.  
          The owner asserts that the Administrator erred in not including 
          this increase in the calculations.  Secondly, the owner contends 
          that since the complaint was filed prior to April 1, 1984 and 
          it purchased the subject building on January 17, 1985, the owner 
          should not be liable for any overcharges collected prior to 
          January 17, 1985.  The owner claims it is liable only for the 
          period that it was collecting rent from the complainant. The 
          owner includes with its petition for review a copy of a deed 
          showing that the owner had purchased the subject building on 
          January 17, 1985.

          After careful consideration, the Commissioner is of the opinion 
          that the owner's petition should be granted in part.

          The Commissioner finds that the Administrator correctly did not 
          allow any rent increase for improvements in the subject 
          apartment.  The owner acknowledges that the work done, if any, 
          was not completed.  In addition, insufficient documentation was 
          submitted to describe the nature or costs of the alleged 

          The current owner purchased the subject premises on January 17, 
          1985.   Pursuant to Section 2526.1(f) of the Rent Stabilization 
          Code, the prior owner, Joseph Delorenzo, is solely liable for 
          those overcharges occurring prior to April 1, 1984 which he 
          collected from the tenant.  The petitioner-owner is jointly and 
          severally liable with the prior owner for overcharges occurring 
          from April 1, 1984 until the prior owner sold the subject 
          premises to the petitioner-owner.  The petitioner-owner is solely 
          liable for overcharges occurring after January 17, 1985.  

          Accordingly, the Commissioner finds that the Administrator's 
          order should be modified so that the prior owner and the 
          petitioner-owner are jointly and severally liable for 
          overcharges occurring from April 1, 1984 to January 16, 1985.

          The owner is cautioned that rents for periods subsequent to April 
          14, 1985 should be based upon the amount of $554.53 for the lease 
          period of April 15, 1984 through April 14, 1985, and that any 
          demand for and collection of an amount in excess of the lawful 
          amount may give rise to a new overcharge complaint, in which 
          treble damages may be awarded if warranted.  A copy of this order 
          and opinion is being sent to the current occupant of the subject 

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

          BL 410305 RO

          ORDERED, that this petition be, and the same hereby is, granted 
          in part, and that the Administrator's order be, and the same 
          hereby is, modified in accordance with this order and opinion; 
          and it is

          FURTHER ORDERED, that the owners, Joseph Delorenzo and Barry 
          Mark, shall immediately refund to the tenant all amounts not yet 
          refunded representing overcharges, penalties, and excess security 
          deposits; and it is

          FURTHER ORDERED, that if the owners, Joseph Delorenzo and Barry 
          Mark, have not refunded any such amounts upon the expiration of 
          the period for seeking judicial review of this order pursuant to 
          Article 78 of the Civil Practice Law and Rules, the tenant may 
          file and enforce this order as a judgment for the amount of 
          $1,177.82 against Joseph Delorenzo, individually and for the 
          amount of $1,110.04 against Joseph Delorenzo and Barry Mark, 
          jointly and severally, and for the amount of $320.00 against 
          Barry Mark, individually.


          JOSEPH A. D'AGOSTO
          Acting Deputy Commissioner


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