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

          APPEAL OF                               DOCKET NO.: DH430229RO 

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO.: AK522811FR
               BIG RIVER REALTY CORP.


               On August 11, 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 August 1, 1989 
          by the Rent Administrator of the Gertz Plaza, Jamaica, New York 
          Rent Office, concerning the housing accommodation known as 611 West 
          158th Street, Various Apts., New York, NY.

               The issue in this proceeding is whether the Fuel Cost 
          Adjustments should have been suspended for the calendar year 1986.

               The Rent Administrator's order appealed herein suspended all 
          fuel cost adjustments for the period January 1, 1986 through 
          December 31, 1986.

               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 #6 
          oil during the calendar year 1985.

               On appeal, the landlord states, in substance, that the office 
          does not hold any records indicating that previous landlord charged 
          for fuel in 1986.  If the previous landlord did in fact charge for 
          fuel at that time, Big River Realty Corp. should not be held 
          responsible for refunds to the tenants due to the fact that it was 
          not managing the building in 1986.  It became the new managing 
          company as of April 1987.

               After a careful consideration of the entire evidence of record 
          the Commissioner is of the opinion that the administrative appeal 
          should be denied.

          ADM. APPEAL DOCKET NO.: DH430229RO

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

               In early 1986, a finding was promulgated that the price of #6 
          fuel oil had declined during 1985.  The subject landlord was 
          required to file and serve fuel cost decrease report on or before 
          May 14, 1986.

               In this matter it is undisputed that a "Landlord's Report, 
          Certification and Notice of Fuel Cost Adjustment Eligibility-1986" 
          was not received by the Rent Office on or before May 14, 1986.

               The Commissioner finds that the fact that the owner had 
          acquired the subject building in 1987 does not excuse the owner 
          from following the Administrator's determination because a new 
          owner is required pursuant to 9NYCRR 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.

               The record shows that fuel cost increases were taken in 1980 
          through 1982 presumably by the prior owner.  Unless the current 
          owner deducted the 1986 Fuel Cost Adjustment (FCA) previously the 
          current owner is obligated to now make the refund and reduction 
          ordered by the Administrator.

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


                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner 

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