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

          APPEAL OF                              DOCKET NO. BL210360RO
                                              :  DRO DOCKET NO. 79045G/31512
              ALEXANDER MUSS & SONS              TENANT: SALLY BURRIS         

                                PETITIONER    :                             

               On December 28, 1987, the above-named petitioner-owner timely 
          refiled a Petition for Administrative Review against an order issued 
          on October 6, 1987, by the Rent Administrator, 10 Columbus Circle, 
          New York, NY, concerning the housing accommodations known as        
          35 Seacoast Terrace, Brooklyn, NY, parking space, apt. 20 V        
          wherein the Rent Administrator determined that the owner had 
          overcharged the tenant.
               The Commissioner notes that this proceeding was filed prior to 
          April 1, 1984.  Sections 2526.1 (a) (4)  and 2521.1 (d) of the Rent 
          Stabilization Code (effective May 1, 1987) governing rent overcharge 
          and fair market rent proceedings provide that determination of these 
          matters be based upon the law or code provisions in effect on March 
          31, 1984.  Therefore, unless otherwise indicated, reference to 
          Sections of the Rent Stabilization Code (Code) contained herein are 
          to the Code in effect on April 30, 1987.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2(m)(1) of the former Rent Stabilization Code.

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

               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 filing on 
          November 30, 1983 of a rent overcharge complaint by the tenant.
          The tenant asserted that the owner was charging almost double the 
          rent paid by the prior tenant for a parking space.  

               In answer to the complaint, the owner stated that parking 
          spaces were not allocated to specific apartments and that the tenant 
          was charged the applicable rent as of the time the tenant rented the 
          parking space.

               In the order here under review, the Administrator determined 
          that as an ancillary service provided on the base date, the garage 
          space was subject to the Rent Stabilization Law and further 
          determined that the lawful stabilized rent for the garage space as 


          of February 1,1981 through January 31, 1984 is $39.13 including 
          sales tax.  The Rent Administrator directed the owner to refund an 
          overcharge of $513.19 .  

               In its appeal, the owner contends that 1) based on the Rent 
          Stabilization Code effective May 1, 1987, the initial garage rent 
          charged was not governed by the guidelines and  the garage rent was 
          appropriate at the time of rental, 2) the owner's constitutional 
          rights are being violated because the owner does not own the garage, 
          3) the owner requests a hearing.     

               In answer to the appeal, the tenant contends that as this 
          matter is properly governed by the former Rent Stabilization Code, 
          guidelines should apply and that there is common ownership of the 
          subject garage and building.  In support thereof, the tenant submits  
          a copy of the owner's application for a Major Capital Improvements 
          rent increase in which the owner acknowledges ownership of the 
          garage and a copy of the garage lease signed by the owner.  

               The Commissioner is of the opinion that this petition should be 

               Section 2526.1(a)(4) of the Rent Stabilization Code effective 
          May 1, 1987 provides in pertinent part that complaints filed prior 
          to April 1, 1984 shall be determined in accordance with the RSL and 
          Code provisions in effect on March 31, 1984.  This provision of the 
          current Code has been upheld by the courts.  Lavanant v. DHCR 148 
          A.D. 2d 185, 544 N.Y.S. 2d 331 (App. Div. 1st Dept. 1989),  Century 
          Tower Associates v. DHCR,( NYLJ, March 24 , 1994, p.29, col.3, NY 
          Court of Appeals).  Accordingly, the Administrator correctly applied 
          the provisions of the former Rent Stabilization Code in determining 
          that the garage rent was subject to Rent Stabilization Board 
          Guidelines orders. 

               The Commissioner finds that there was common ownership of the 
          subject garage and apartment at the time the tenant first took 
          occupancy.  The transferring thereafter of the garage to a separate 
          entity would not change the tenant's entitlement to the protection 
          of the Rent Stabilization Law and Code. Further, there is no 
          evidence that the garage ownership was transferred to another entity 
          during the period of the overcharge herein and the owner did not 
          raise this contention in the proceeding before the Rent 
          Administrator.  Since this is not a de novo proceeding, this issue 
          cannot be properly considered on appeal.

               Hearings are discretionary and will be held only when required 
          to resove an issue.  A hearing is not required in this proceeding 
          where the issues raised can be resolved by examination of the 
                    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 and determinations 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 



               The Commissioner has determined in this Order and Opinion that 
          the owner collected overcharges of $513.19.  Upon expiration of the 
          period for seeking review of this Order and Opinion pursuant to 
          Article Seventy-eight of the Civil Practice Law and Rules, not  in 
          excess of twenty percent per month of the overcharge may be offset 
          against rent thereafter due the owner.  Where the tenant credits the 
          overcharge, the tenant may add to the overcharge, interest at the 
          rate payable on ajudgment pursuant to section 5004 of the Civil 
          Practice Law and Rules from the issuance date of the Rent 
          Administrator's order to the issuance date of the Commissioner's 

               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.


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner




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