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

      APPEAL OF                              DOCKET NO. BJ230054RO

                                          :  DISTRICT RENT OFFICE
           Royal B Associates,               DOCKET NO. K3104205/
                                             TENANT: Scotty Maxwell      

                            PETITIONER    : 


      On October 21, 1987, the above-named petitioner-owner filed a Petition 
      for Administrative Review against an order issued on September 18, 1987 
      by the Rent Administrator, 10 Columbus Circle, New York, New York, 
      concerning the housing accommodations known as 294 Webster Avenue, 
      Brooklyn, New York, Apartment No. D-9, 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 issue 
      raised by the administrative appeal.  

      This proceeding was commenced on March 31, 1984 when the tenant filed an 
      overcharge complaint.  The tenant commenced occupancy on April 1, 1981.

      Review of the record discloses that a copy of the complaint was sent to 
      the prior and the then-current owners.

      The owners did not respond.

      Subsequently, in a Final Notice of Pending Default, the owners were 
      informed that failure to submit documentation substantiating the base 
      rent date would result in a default and the consequent establishment of 
      the lawful stabilization rent by use of court-approved default 
      procedures.  No response was submitted.

      In Order Number CDR31,418, the Rent Administrator determined that due to 
      the owner's failure to submit a full rental history, the lawful 
      stabilized rent is $119.33 as of April 1, 1981 through January 31, 1985 
      and that the owner had collected a rent overcharge of $2,178.89 
      inclusive of excess security and treble damages on that portion of the 
      overcharge occurring on and after April 1, 1984.

      In the appeal, the owner contends in substance that it owned the subject 
      building from February 14, 1984 to January 10, 1986, that it collected 
      the same rent as was in effect when it purchased the building, that it 
      never increased the rent, that it has never been requested to submit a 
      rent history and that it sold the subject building on January 10, 1986.


      An examination of agency records reveals that the present owner 
      registered the subject building in 1986.  Although the order herein 
      appealed was not issued until 1987, the present owner was not served 
      with the complaint.  To ensure due process rights this proceeding should 
      be remanded to permit the present owner to respond to the complaint.

      The Commissioner notes that the subject premises is located in the 
      Second Department .  In accordance with the decision in J.R.D. Mgmt. v. 
      Eimicke, 148 A.D.2d 610, 539 N.Y.S. 2d 667 (App. Div. 2d Dept., 1989), 
      the owner is required to submit the rental history only from April 1, 

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

      ORDERED, that this proceeding be, and the same hereby is, remanded 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 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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