DOCKET NO.:  DC 810146-RO
                                 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   :   
     APPEAL OF                                 ADMINISTRATIVE REVIEW  
                                           :   DOCKET NO. DC 810146-RO
       PETROCELLI ASSOCIATES LTD.,             DRO DOCKET NOS. 35055
                                PETITIONER :   Examining Unit
     --------------------------------------X   TENANTS:  LUKE & HELEN  CONFORTO
          

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On March 1, 1989, the above named petitioner-owner filed  a  Petition  for
     Administrative Review against an order issued on January 26, 1989, by  the
     Rent Administrator, 10 Columbus Circle, New  York,  New  York,  concerning
     housing accommodations  known  as  Apartment  A-4,  437  Palisade  Avenue,
     Yonkers, New York, wherein the Rent Administrator  determined  that  there
     had been an overcharge and ordered a refund.

     The issue in this appeal is whether a  current  owner  is  responsible  to
     refund overcharges collected by a prior owner.

     The applicable section of the Tenant  Protection  Regulations  is  Section
     2506.

     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 administrative appeal.

     In this petition, the owner contends that the Rent  Administrator's  Order
     is incorrect and should be modified because the order directed the current 
     owner to refund overcharges collected by a prior owner.  In addition,  the
     owner submits a copy of order number YTC 85-622 wherein the tenant's April 
     10, 1985 complaint challenging the  April  1,  1984  registered  rent  was
     denied since not filed within  90  days  of  the  owner's  June  30,  1984
     registration of the subject apartment.  Since that order was issued  April
     18, 1986, the owner argues that the order under appeal herein,  which  was
     issued three years later, should be reversed in its entirety.

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

     At the  outset  the  Commissioner  notes  that  Order  Number  YTC  85-622
     explicitly states that  if  the  tenant  had  previously  filed  a  timely
     challenge (TC-1 form) then a  "further  Order  and  Determination  may  be
     forthcoming" from the Tenant Objection Unit at 10  Columbus  Circle.   The
     order under appeal herein is just such an order.  Clearly, the  subsequent
     filing of an  untimely  challenge  in  YTC  85-622  does  not  negate  the
     timeliness of the original filing, which occurred on August 7, 1984.

     Turning to the substance of the owner's appeal, it has  long  been  DHCR's
     policy under the Emergency Tenant Protection  Act  to  require  a  current
     owner to refund overcharges collected by a prior owner.  This  policy  has






          DOCKET NO.:  DC 810146-RO
     been upheld by the courts.  See S &  M  Development  v.  DHCR,  Sup.  Ct.,
     Rockland Co., Index No. 3735/87, February 21, 1984, J. Lange.

     This Order is without prejudice to the petitioner's right to proceed in  a
     court of competent jurisdiction against any prior owner, if the  facts  so
     warrant.

     THEREFORE, in accordance with the  Emergency  Tenant  Protection  Act  and
     Regulations, it is 

     ORDERED, that this petition be, and the same hereby  is,  denied  and  the
     Rent Administrator's order be, and the same hereby is, affirmed.

     ISSUED:



                                                                              
                                                    JOSEPH A. D'AGOSTA
                                                 Acting Deputy Commissioner 

    

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