DOCKET NO.: DK 410077 RO

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

          APPEAL OF                              DOCKET NO.: DK 410077 RO 

               ROSE SMITH                        D.R.O. DOCKET NO.:
                                                 AC 410033 R
                                                 PRIME TENANT: 
                                                 TRICIA ROJASSUB

                                                 TENANTS: RON AND NORA 


               On November 9, 1989, the above-referenced petitioner filed, 
          as authorized representative of the owner Grenadier Realty Corp., 
          a Petition for Administrative Review against an order issued on 
          October 12, 1989, by the Rent Administrator, concerning the 
          housing accommodations known as apartment 6B2 at 50 West 34th 
          Street, New York, New York, in which order the Administrator had 
          made a finding of rental overcharge.

               This proceeding was commenced on March 24, 1986, when the 
          above-referenced subtenants ("tenants" herein) filed a Complaint 
          of Rent Overcharge.  On the form used for that complaint the 
          tenants supplied as "mailing address of property owners," first 
          the name and address of the prime tenant labelled as such, and 
          then that of the corporation managing the building ("owner" 
          herein).  The complaint averred that the tenants had paid their 
          rent to the prime tenant.

               The above-referenced Division served the complaint on the 
          prime tenant and sent requests for information to the owner.  No 
          answer to the complaint was filed.  In the ensuing order referred 
          to above, the Administrator determined that the lawful stabilized 
          rent was $600.21 as of August 31, 1986, that the tenants had been 
          overcharged $3282.18 and that that amount should be trebled in 
          determining the amount due to them.

          DOCKET NO.: DK 410077 RO

               The order first states that the rent was charged and 
          collected by the prime tenant.  It then directs the "prime 
          tenant/owner" to refund the overcharge, and provides later that 
          the "owner" must pay treble damages and the "owner" make the 
          refund in question.  The last line contains "cc to owner : 
          Grenadier Realty Corp...."

               In appealing that order, the owner's representative 
          ("owner" and "it" herein) asserts that the owner never collected  
          rent from the complainants but only from the prime tenant, and 
          that it was aware of no overcharge since it had collected only 
          the lawful stabilized amount. 

               In response, the tenants state : (1) "We request that the 
          Petition for Administrative Review .... be denied"; (2) "We could 
          not have sublet Apartment 6B2 without Grenadier Realty 
          Management's knowledge and approval and they are responsible for 
          managing the subletting process and allowing rent overcharges";
          (3) "[W]e) made all rent payments directly to the prime tenant 
          ..."; (4) "We request that the petition filed by the owner be 
          dismissed because it was [the prime tenant] who overcharged us 
          *** [and] that the 'Order Finding Rent Overcharge' be upheld 
          against [the prime tenant]."

               After careful consideration of the record, the Commissioner 
          is of the opinion that the petition should be granted.
               It is undisputed that no overcharge was collected by the 
          owner or anyone in its chain of title.  There being no evidence 
          that the owner collected excessive rent indirectly, as by an 
          illusory prime tenancy, the result must be that the owner herein 
          owes no refund to the tenants.  Indeed it is probable that the 
          Administrator did not intend any such refund to be imposed by his 
          order.  Due to ambiguity in that regard, however, the 
          Commissioner will here make clear that no such liability is 
          imposed in this proceeding.
               THEREFORE, in accordance with the Rent Stabilization Law and 
          Code, it is

               ORDERED, that the petition be and the same hereby is 
          granted, and it is,

               FURTHER ORDERED, that the above-referenced Rent 

          Administrator's Order is hereby clarified as follows: The last 
          two references to "owner" on the first page thereof (one imposing 
          treble damages and the next pertaining to the timing of a 
          Petition for Administrative Review) are deemed to refer instead 
          to the prime tenant, who is alone responsible for the overcharge 
          herein.   In all other respects the Administrator's order will 
          remain effective as written.

               When the period for seeking judicial review of this order 
          has expired, the tenants may file and enforce a certified copy of 
          this order as a judgment in the amount of $9,846.54 against the 
          prime tenant Tricia Rojas.


                                                  ELLIOT SANDER
                                                  Deputy Commissioner





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