ADM. APPEAL DOCKET NO.: DA130111RO
                                  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     ADMINISTRATIVE APPEAL
          APPEAL OF                               DOCKET NO.: DA130111RO

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO.: QC850935FR
              FRITZ GUELLY
                                   PETITIONER
          ------------------------------------X

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

               On January 3, 1989 the above named petitioner-landlord filed 
          an appeal in accordance with the applicable provisions of the City 
          Rent Law and Regulations against an order issued on December 22, 
          1988 by the Rent Administrator of the Gertz Plaza, Jamaica, New 
          York Rent Office, concerning the housing accommodation known as 22- 
          03 Harman Street, Apts. B1, B2, C1, C2, Brooklyn, New York.

               The issue in this proceeding is whether Fuel Cost Adjustments 
          should have been suspended for the calendar year 1985.

               The Rent Administrator's order appealed herein suspended all 
          fuel cost adjustments for the period January 1, 1985 through 
          December 31, 1985.

               This order was based upon a finding that the owner of the 
          subject building had previously obtained allowable fuel cost 
          adjustments and failed to timely serve and file the required report 
          of fuel cost decrease by reason of a decrease in the price of #2 
          oil during the calendar year 1984.

               On appeal, the landlord states, in substance, that he took 
          title of the subject building in January 1987.  In addition the 
          owner states the Order of Suspension and Revocation of Fuel Cost 
          Adjustment goes back to 1985.  This is just completely unreasonable 
          and unacceptable.

               9 NYCRR 2202.13 provides that where a landlord has obtained 
          fuel cost adjustments and then there is a finding of fuel price 
          decrease, within 60 days of the promulgation of the finding on fuel 
          prices, the landlord must serve and file a report of fuel price 
          decrease.














          ADM. APPEAL DOCKET NO.: DA130111RO

               In early 1985, a finding was promulgated that the price of #2 
          fuel oil had declined during 1984.  The then-current landlord was 
          required to file and serve fuel cost decrease reports on or before 
          May 15, 1985.

               In this matter it is undisputed that a "Landlord's Report, 
          Certification and Notice of Fuel Cost Adjustment Eligibility-1985" 
          was not served on the tenants or received by the Rent Office on or 
          before May 15, 1985.

               The Commissioner is of the opinion the Rent Administrator 
          correctly suspended Fuel Cost Adjustments for the calendar year 
          1985.

               The Commissioner finds that the fact that the owner had 
          acquired the subject building in 1987 does not excuse him from 
          following the Administrator's determination because a new owner is 
          required pursuant to 9 NYCRR 2202.24(b) to refund or credit any 
          Fuel Cost allowance increase paid by the subject tenant(s).  In 
          general, a new owner takes a building subject to the obligations of 
          the prior owner.  This Order is without prejudice to the present 
          landlord's right to proceed against the prior landlord in a court 
          of competent jurisdiction.

               The record shows that Fuel Cost increases were taken in 1980 
          through 1982 presumably by the prior owner.  Unless the current 
          owner deducted the 1985 Fuel Cost Adjustment (FCA) previously the 
          current owner is obligated to now make the refund and reduction 
          ordered by the Administrator.  The Commissioner notes that the 
          order under review only required the refund of the 1985 FCA.  
          Subsequent years were not effected by the order under review, which 
          explicitly reinstated the FCA as of January 1, 1986.

               THEREFORE, in accordance with the applicable provisions of the 
          Rent and Eviction Regulations for New York City, it is 

               ORDERED, that this administrative appeal be, and the same 
          hereby is, denied, and that the order of the Rent Administrator be, 
          and the same hereby is, affirmed.

          ISSUED:




                                                                          
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner   
               
    

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