AR Docket Nos. DC 410157-RO, DD 410018-RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

          APPEALS OF                              DOCKET NOS.: DC 410157-RO
                                                               DD 410018-RO
            ALFRED M. GRONER
            (THREE-ODD-NINETY-FOURTH              DRO ORDER NO.: CDR 27,516
             ASSOCIATES) AND FAITH                               As Amended
             MINISTRIES, INC.,
                                                  DRO DOCKET NO.: 
                                                  CH 410037-RP; (TC-082675-G)  
                                                  TENANT: Ellen Landesberg

                                   REVIEW IN PART

          On March 14, 1989, the above named petitioner-prior-owner,  Alfred
          M. Groner [Three-Odd-Ninety-Fourth Associates], filed  a  Petition
          for Administrative Review against an order issued on February  28,
          1989, by the Rent Administrator at 10 Columbus Circle,  New  York,
          New York, concerning housing  accommodations  known  as  apartment
          number 3 at 329 East 94th Street, New York, New York, wherein  the
          Administrator established the stabilized  rent  and  directed  the
          owner to refund $11,563.71, including interest from April 1, 1984. 
          On  April  4,  1989,  the  above  named  petitioner-owner,   Faith
          Ministries,  Inc.  filed  a  Petition  for  Administrative  Review
          against said order.  Pursuant to Section  2529.1(c)  of  the  Code
          effective May 1, 1987, these petitions are consolidated herein.

          The Commissioner notes that this proceeding was initiated 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 Commissioner has reviewed all of the evidence  in  the  record
          and has carefully considered that portion of the evidence relevant 
          to the issues raised in the administrative appeal.

          This proceeding was originally commenced on February 16,  1984  by
          the filing of a complaint of rent overcharge  with  the  New  York
          City Conciliation and Appeals  Board  (CAB,  the  agency  formerly
          charged with enforcing the Rent Stabilization Law) by the tenant.
          Based on the failure of any prior or current  owner  to  submit  a
          complete rental history, a default procedure was used to  fix  the
          stabilized rent.  To correct various procedural defects  that  had
          appeared therein, the Administrator's original order  of  November

          AR Docket Nos. DC 410157-RO, DD 410018-RO

          24, 1986 was twice amended.  The next to  the  last  order  issued
          hereinbelow was issued on October 5, 1987.

          Thereafter, the tenant asked  for  reconsideration  of  the  order
          issued on October 5, 1987, to correct  the  designations  made  in
          that order as to the current and prior owners and to apportion the 
          responsibility for  the  refund  between  the  current  and  prior
          owners.  Notice of this application was served on the  Petitioners
          and they were afforded an opportunity to comment thereon.

          By letter dated December 6, 1988, Alfred M.  Groner  answered  the
          application  by  advising  the  Administrator  that  the   subject
          building had been sold to L.C. Realty Corporation (L.C.) in  1983;
          that L.C. was located at 101 Park  Avenue  c/o  Dreyer  and  Traub
          (Attorneys-at-law) and that all inquiries  regarding  the  subject
          building should be sent to L.C.

          Notice of that application was also sent to S & G Management  (the
          managing agent for L.C.) addressed to that firm at P.O. Box  4405,
          Flushing, New York 11360-4405.  The answer received to that notice 
          was delivered by return mail in an  envelope  with  a  handwritten
          return address that read "Faith Ministries,  P.O.  Box  4405,  Bay
          Terrace, New York 11360."  The answer was signed by  "M.  Delgado"
          and the signature was described, by M. Delgado, as  the  signature
          of  "previous  reg.[istered]  agent."   The  answer   stated,   in
          substance, the following:

               1)  L.C. mail must be addressed to P.O. Box 4405, Bay 
               Terrace, NY 11360.

               2)  The tenant was in occupancy prior to L.C.'s 
               acquisition of the above premises and therefore L.C. 
               should not be subject to treble damages.

               3)  The tenant took occupancy on September 15, 1982, 
               which was prior to L.C.'s purchase of the building on 
               September 21, 1983.  L.C.'s renewal lease with the 
               tenant accorded with the applicable Guidelines.  
               Therefore, L.C. should not be subject to treble damages.

               3)  The tenant vacated before the expiration of the L.C. 
               renewal lease.

               4)  Faith Ministries, Inc. [L.C.'s devisee] took title a 
               number of years after the tenant had vacated.

          AR Docket Nos. DC 410157-RO, DD 410018-RO

               5)  L.C., was not given "decontrol papers" for the 
               apartment by the prior owner; but a copy of a previous 
               lease was provided and is enclosed herewith [no such 
               lease was found in the record as a part of this answer].

          On February 28, 1989, the tenant's application was granted by  the
          issuance of the appealed order.  Faith Ministries, Inc. was  named
          therein as the current owner.  L.C. Realty Corp. was named as  the
          2nd prior owner and S & G Management was named as the present  and
          2nd prior managing agent.  Three-Odd-Ninety-Fourth Associates  c/o
          Alfred M. Groner, 575 8th Avenue, New York,  New  York  10018  was
          named therein as the 1st prior  owner.   Troy  Ventures  c/o  J.L.
          Madison Properties Ltd. was named in the order, but its status was 
          not made clear.  J.L. Madison Properties, Ltd c/o  329  Associates
          was named as the 1st Managing Agent.  On the chart attached to and 
          made a part  of  the  order,  the  Administrator  established  the
          stabilized rent under the tenant's September 15, 1982 to September 
          14, 1983 lease at $635.00 and under the tenant's January  1,  1984
          to December 31, 1984 lease at $660.40.   The  order  contained  no
          specific provision directing an apportionment of the refund due 
          among the various prior owners and the current owner.

          In the Petition signed by Alfred M. Groner, and wherein Alfred  M.
          Groner is named  as  the  Petitioner,  it  is  asserted  that  the
          Administrator erred in holding Three-Odd-Ninety-Fourth  Associates
          responsible for any portion of  the  overcharges  to  be  refunded
          because Three-Odd-Ninety-Fourth Associates had sold  the  building
          on March 28, 1983 and all records pertaining  to  this  case  were
          transferred at that time.

          The tenant has filed an answer opposing that Petition.  The tenant 
          states that Three-Odd-Ninety-Fourth Associates was  the  owner  of
          the subject building during a period that the tenant resided there 
          and during which period overcharges were collected by  said  prior
          owner from the tenant (to wit, September 15, 1982  to  August  30,
          1983).  The tenant asserts that pursuant to the Rent Stabilization 
          Code effective May 1, 1987 (Section 2526.1) the petitioner  should
          be held liable for the overcharges it collected.

          Styled as a response to  the  tenant's  answer,  the  Commissioner
          received an application  filed  by  the  attorney  for  Alfred  M.
          Groner.  This application made reference to PAR docket numb r  DC-
          410157-RO and sought "dismissal of all proceedings as to Alfred M. 
          Groner."  Various documents were submitted with said application.

          In a surreply to this application,  the  tenant  argues  that  her
          claim is against a number of  companies  and  that  as  a  limited
          partner  of  Three-Odd-Ninety-Fourth  Associates,  Alfred  Groner,
          (despite any right to indemnification that he may have against the 


          AR Docket Nos. DC 410157-RO, DD 410018-RO

          General Partner) is liable to the tenant based on the  overcharges

          In the Petition  of  Faith  Ministries,  Inc.  the  current  owner
          alleges the following, in substance:

               1.  L.C. Realty did not acquire title (or collect rents) 
               until September 21, 1983.  The prior owners were 
               responsible for setting the tenant's initial rent.  L.C. 
               relied on that figure in setting the renewal lease rent.

               2.  The tenant never entered into a renewal lease with 

               3.  The tenant vacated owing more than four (4) months 
               back rent.

               4.  The tenant had vacated long before November, 1984, 
               by which time the apartment had already been rented to 
               another tenant.

               5.  Faith Ministries, Inc. never collected any rent from 
               the tenant.  The tenant had vacated by the time Faith
               Ministries Inc. took title.

               6.  L.C. did not get a complete rental history from the 
               prior owner.

          The tenant has interposed an answer in opposition to the Petition 
          of Faith Ministries, Inc.  The tenant asserts, in substance, as 

               1.  Three-Odd-Ninety-Fourth Associates c/o Alfred Groner 
               did execute the tenant's first lease.

               2.  Three-Odd-Ninety-Fourth Associates did collect the 
               tenant's rent until September of 1983.

               3.  The tenant did enter into a renewal lease with L.C. 
               Realty Corp. [the tenant annexed a copy of a lease 
               between L.C. Realty and herself dated December 5, 1983 
               for a term which commenced on January 1, 1984 and 
               expired on December 31, 1984 at a monthly rental of 

               4.  The tenant does not owe any rent arrears.  She was 
               never informed [prior to receipt of a copy of Faith 
               Ministries's Petition] of that charge.  Further, the 
               tenant questions the basis of Faith Ministries's 

          AR Docket Nos. DC 410157-RO, DD 410018-RO

               interest in said alleged arrears if it was not her 

               5.  The tenant vacated the apartment around August or 
               September of 1984.  [Subsequent to the filing of this 
               answer in opposition, in a telephone conversation with a 
               member of the Division's staff, the tenant revised this 
               statement indicating that she had vacated by the time 
               she had filed her February 5, 1984 complaint and that 
               she may have vacated in January of 1984.]

               6.  To the best of the tenant's knowledge, she never 
               wrote a rent check that was payable to Faith Ministries, 
               but may have written one payable to one of Faith 
               Ministries's managing agents.

               7.  Whether the prior owner ever gave L.C. Realty Corp. 
               a complete rental history is not something the tenant 
               should comment on.

          The Commissioner is of the opinion  that  both  of  the  Petitions
          should be granted in  part  and  that  the  Administrator's  order
          should be amended in accordance with this order and opinion.

          The Commissioner finds that it is clear from  the  record  herein,
          and especially from the complaint itself (which  states  that  the
          tenant's mailing address was 333 East 14th Street, New  York,  New
          York), that the tenant had vacated the  subject  apartment  as  of
          January 31, 1984. Since the complaint was signed  on  February  5,
          1984, the Commissioner finds that the  order  below,  wherein  the
          overcharges were calculated on  the  basis  that  the  tenant  had
          continued in occupancy through December 31, 1984, must be  amended
          by reducing the total overcharges to be refunded to the sum  which
          the Administrator found had been collected as of January 31, 1984; 
          that is to $5,900.38.

          The Commissioner notes that the  Administrator's  order  indicated
          that no rent  had  been  paid  from  September  15,  1983  through
          December 31, 1983: no overcharges  were  found  for  that  period.
          However, the Commissioner notes that  that  order  indicated  that
          overcharges had been collected subsequent to December 31, 1983  at
          the rate of $461.38 per month.

          The Commissioner notes that the record shows that Alfred M. Groner 
          was the president of Meah Achuz Corp., which took title  on  April
          15, 1981 and then deeded the property  to  Three-Odd-Ninety-Fourth
          Associates on April 27, 1981; that at that time Alfred  M.  Groner
          and his wife Jeanne we e  limited  partners  of  Three-Odd-Ninety-
          Fourth Associates and Jay Weiss was the General Partner.  The 

          AR Docket Nos. DC 410157-RO, DD 410018-RO

          record also shows that Jay Weiss was the president of J.L. Madison 
          Properties, Ltd. on October 14, 1982 and  that  Alfred  M.  Groner
          held a mortgage on 329-339 East 94th Street.  The  record  further
          shows that on March 28, 1983,  Three-Odd-Ninety-Fourth  Associates
          deeded the subject building to 329 Associates and that Jay Weiss's 
          sister, Lauri Soldinger was the General Partner of 329 Associates. 
          The record also shows that on September 15, 1983,  329  Associates
          deeded the property to L.C. Realty Corporation.  The  Commissioner
          also notes that the record shows that on  October  27,  1983,  Jay
          Weiss, as General Partner  of  "Three  Odd  Associates"  wrote  to
          Alfred Groner with regard to the distribution of the  proceeds  of
          the sale of the subject  building.   In  that  letter,  Jay  Weiss
          referred to his funding $6,000.00 to the Partnership  after  April
          1, 1983. That letter also shows that the Partnership had  obtained
          three mortgages on  the  properties  (329-339  East  94th  Street)
          totalling $360,000.00 at various interest rates. The  Commissioner
          further notes that Troy Ventures, "as agent",  was  named  as  the
          owner  on  the  tenant's  vacancy  lease  (September  15,  1982  -
          September 14, 1983).

          The Commissoner therefore finds that the record shows  that  there
          was a relationship between the  various  owners  of  the  property
          which held title between September 15, 1982 and September 14, 1983 
          and their agents (Three-Odd-Ninety-Fourth Associates,  Jay  Weiss,
          329 Associates, Lauri Soldinger, Troy Ventures  and  J.L.  Madison
          Properties Ltd.) such that each of them is jointly  and  severally
          liable for the full amount of said overchages; that is for 

          The Commissoiner notes that the  record  shows  that,  by  a  deed
          dated August 10, 1987, L.C. Realty Corporation deeded the  subject
          property to Faith Ministries, Inc.  The record indicates that said 
          deed was signed by Lydia  Delgado  as  President  of  L.C.  Realty
          Corporation.  The record also shows that  Lydia  Delgado  was  the
          president of L.C. Realty's managing agent, S &  G  Management,  on
          October 12, 1984 and that L. Delgado signed the PAR filed by Faith 
          Ministries, Inc.

          The Commissioner therefore finds that  there  was  a  relationship
          between L.C. Realty Corp, S & G Management  and  Faith  Ministries
          such  that  they  are  jointly  and  severally  liable   for   the
          overcharges  the  Administrator  found  had  been  collected  from
          September 15, 1983 through January 31, 1984; that is for  $461.38.

          Therefore, the Commissioner finds that the  Administrator's  order
          should be modified in accordance with this order and opinion.

          As to the application of Alfred M. Groner to have "all proceedings 
          dismissed  as  to  him",  the  Commissioner  believes  that   that
          application should  be,  and  the  same  hereby  is  denied.   The
          Commissioner cannot make a finding, based on this record, as to 

          AR Docket Nos. DC 410157-RO, DD 410018-RO

          whether or not Alfred M. Groner may  ultimately be liable for  any
          portion of the pre-September 15, 1983 overcharges as a  tranferee,
          a responsible party or  otherwise.   Therefore,  the  Commissioner
          finds that it would be inappropriate to dismiss all proceedings as 
          to Alfred M. Groner. 

          The Commissioner notes that this order and opinion may,  upon  the
          expiration of the period in which the owner and prior  owners  may
          institute a proceeding pursuant to Article  Seventy-eight  of  the
          Civil Practice Law and Rules, be filed and enforced by the  tenant
          in the same manner as a judgment. 

          Moreover, in light of the fact that the  record  herein  indicates
          that the tenant no longer occupies the  subject  accommodation,  a
          copy of this Order and  Opinion  is  being  sent  to  the  present
          occupant of the subject accommodation.  The  Commissioner  advises
          the owner to update the registration  statement  for  the  subject
          accommodation (if it has not  already  done  so)  to  reflect  the
          change in occupancy and the  stabilized  rent  determined  in  the
          Administrator's order below.

          THEREFORE, pursuant to the Rent Stabilization Law and Code, it is

          ORDERED, that these petitions be, and the same hereby are  granted
          in part; and that the  Administrator's  order  be,  and  the  same
          hereby is amended in accordance with this order and opinion. 


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner

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