DI 110268 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          ------------------------------------X  SJR No. 6056
          APPEAL OF                              DOCKET NO. DI 110268 RO

                                              :  DISTRICT RENT OFFICE
               Ascot Management,                 DOCKET NO. 25,041
                                                 TENANT:   Carlos    Blanco

                                   PETITIONER : 


          On September  14,  1989,  the  above-named  petitioner  filed  an
          Appeal against an order issued  on  December  19,  1988,  by  the
          District Rent Administrator of the Queens District  Rent  Office,
          concerning  the  housing  accommodations  known  as  147-15  76th
          Street, Flushing, New York, Apartment No. 1D.

          On September 13, 1991,  the  Commissioner  issued  an  order  and
          opinion dismissing the petitioner's administrative appeal.

          Subsequent thereto, the petitioner filed a  petition  in  Supreme
          Court pursuant to Article 78 of the Civil Practice Law and  Rules
          requesting that the order of the Commissioner be annulled.

          On March 26, 1992 an order was signed by the Honorable 
          Edwin Kassoff, Justice, remitting the proceeding to the  Division
          of Housing and Community Renewal, Office of Rent  Administration,
          for determination on the merits.

          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  tenant  on  July
          30,  1984  by  the  filing  of  an  objection  to  the  apartment
          registration including, among other  things,  a  rent  overcharge
          complaint.  The owner was served with  a  copy  of  the  tenant's
          complaint but only submitted a lease history from April 1, 1983. 

          DI 110268 RO
          In Order  Number  25,041,  the  Rent  Administrator  among  other
          things,  established  the  lawful  stabilized  rent  as   $253.45
          effective April 1, 1983, determined  that  the  tenant  had  been
          overcharged and directed a refund  to  the  tenant  of  $8,082.78
          including treble damages on overcharges collected  on  and  after
          April 1, 1984.

          In this petition, the owner contends in substance that the  Order
          should not have imposed treble damages against the owner  because
          the premises were purchased by the prior owner at a judicial sale 
          in 1985.

          The Commissioner is of the opinion that this petition  should  be

          An examination of the record in  this  case  discloses  that  the
          owner failed to raise this argument before the Administrator  and
          therefore can  not  raise  it  for  the  first  time  on  appeal.
          Furthermore, the owner failed to submit an proof in his  petition
          that indeed a judicial sale occurred in 1985.  Finally, it should 
          be noted that Section 2526.(4)(f)(2) of  the  Rent  Stabilization
          Code provides  relief  for  a  "current  owner"  who  purchase  a
          building after  a  judicial  sale.   In  the  instant  case,  the
          petitioner  is  the  managing  agent  for  Johar  Gardens   Owner
          Corporation who purchased the properly from G & I Properties Inc. 
          and not from a judicial sale.

          Accordingly, the Rent Administrator's order was warranted.

          Because this determination concerns  lawful  rents  only  through
          November 30, 1988, the owner is cautioned  to  adjust  subsequent
          rents to an amount no greater than that determined  by  the  Rent
          Administrator's order plus any lawful increases, and to  register
          any adjusted rents with this order and opinion being given as the 
          explanation for the adjustment.

          This order may, upon the expiration of the period  in  which  the
          owner may institute a proceeding pursuant to Article  78  of  the
          Civil Practice Law and Rules, be filed and enforced in  the  same
          manner as a judgment or not in excess of twenty percent per month 
          thereof may be offset against any rent thereafter due the owner.

          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
                                          Acting Deputy Commissioner

          DI 110268 RO



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