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

          APPEAL OF                               DOCKET NO.: DI230066RO

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO.: AK220656FR


               On September 1, 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 14, 1989 
          by the Rent Administrator of the Gertz Plaza, Jamaica, New York 
          Rent Office, concerning the housing accommodation known as 8001 Bay 
          Parkway, Various Apts., Brooklyn, New York.

               The issue in this proceeding is whether 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 
          Brooklyn Union "Interruptible" Gas.

               On appeal the landlord states, in substance, that the building 
          was purchased by the present owners in April 1986.  The present 
          owners did not charge the tenants fuel charges for 1986 through 
          1988.  Therefore no filings were necessary.

               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.: DI230066RO

               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 

               In early 1986, a finding was promulgated that the price of 
          Brooklyn Union "Interruptible" Gas had declined during 1985.  The 
          subject landlord was required to file and serve fuel cost decrease 
          reports on or before May 14, 1986.  It is undisputed that no such 
          filing took place.  The Suspension Procedure is initiated by the 
          Division whenever an owner fails to timely file a notice of Fuel 
          decrease.  Furthermore, a new owner is obligated to refund a fuel 
          cost adjustment even if the failure to file was the fault of a 
          prior owner and the suspended fuel cost adjustment had been 
          collected by a prior owner.

               The Commissioner notes that the Administrator's order required 
          the landlord to refund money to the tenant only if a Fuel Cost 
          adjustment increase was actually collected.  The Commissioner 
          further notes that it is implied in the Administrator's order that 
          if the owner did not collect any fuel cost adjustment for the 
          period covered by the order then no refund by the owner was 
          required by the order.  Accordingly, the owner was not adversely 
          affected by the Administrator's order if it is true that no Fuel 
          Cost Adjustments were collected for the year in question.

               A review of the record reveals that the owner did in fact file 
          the 1988 Fuel Cost report along with Schedule A which indicates 
          more than one type of fuel was delivered during that period.

               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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