BJ230305RO

                                  STATE OF NEW YORK
                      DIVISION OF HOUSING AND COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          ------------------------------------X 
          IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
          APPEAL OF                              DOCKET NO.BJ230305RO
                                              :  DRO DOCKET NO.36529
               ZEAL MANAGEMENT CORP.             TENANT:NAFTALI TOPPER

                                PETITIONER    : 
          ------------------------------------X                             
             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


               On October 8, 1987, the above-named petitioner-owner timely 
          refiled a Petition for Administrative Review against an order issued 
          on February 11, 1987, by the Rent Administrator, 10 Columbus Circle, 
          New York, New York, concerning the housing accommodations known as 
          1580 East 18th Street, Brooklyn, New York, Apartment No. 5J, wherein 
          the Rent Administrator determined that a rent overcharge had 
          occurred.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 of the Rent Stabilization Code. 

               The issue herein is whether the Rent Administrator's order was 
          warranted.

               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 originally commenced by the tenant's filing 
          of an Objection to the Registration in November 1984 in which the 
          tenant stated that there was a rent overcharge.

               In response to the tenant's complaint, the owner stated that it 
          had purchased the subject premises in June, 1985, and submitted a 
          rental history for the subject apartment.

               In Order Number 36529, the Rent Administrator determined that 
          the owner had collected a rent overcharge totalling $297.12 from 
          February 1, 1982 through January 31, 1987, and directed the owner to 
          refund such overcharge to the tenant.

               In this petition, the owner alleges in substance that it should 
          not be liable for refunding any overcharge which occurred prior to 
          its ownership of the subject premises since it did not collect such 
          overcharges.

               The Commissioner is of the opinion that this petition should be 
          denied.










          BJ230305RO



               Section 2526.1(f)(2) of the Rent Stabilization Code provides in 
          pertinent part that for overcharge complaints filed or overcharges 
          collected on or after April 1, 1984, a current owner shall be 
          responsible for all overcharge penalties, including penalties based 
          upon overcharges collected by any prior owner.

               In the instant case, the tenant's overcharge complaint was 
          filed after April 1, 1984.  Accordingly, the Rent Administrator 
          correctly held that the current owner was responsible for the refund 
          of the entire overcharge.  However, this order is issued without 
          prejudice to any action the current owner may have against the prior 
          owner for the refund of any overcharge actually collected by the 
          prior owner.

               The owner is directed to reflect the findings and 
          determinations made in this order on all future registration 
          statements, including those for the current year if not already 
          filed, citing this order as the basis for the change.  Registration 
          statements already on file, however, should not be amended to 
          reflect the findings made in this order.  The owner is further 
          directed to adjust subsequent rents to an amount no greater than 
          that determined by this order plus any lawful increases.

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

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is, affirmed.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




                     
















          BJ230305RO























    

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