EH 610247 RO

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

      APPEAL OF                              DOCKET NO. EH 610247 RO

                                          :  DISTRICT RENT OFFICE
           Bukolla Properties, Inc.,         DOCKET NO. BJ 610131 R
                                             TENANT: Nelly Zambrano      

                            PETITIONER    : 


      On August 24, 1990, the above-named owner filed a Petition for 
      Administrative Review against an order issued on July 25, 1990, by a 
      Rent Administrator, concerning the housing accommodations known as      
      29 East Mosholu Parkway North, Bronx, New York, Apartment No. 6B, 
      wherein the Administrator determined that the owner had overcharged the 

      This proceeding originated with the tenant's filing of a complaint of 
      overcharge, in October, 1987.  Pursuant thereto the Administrator 
      requested from the owner copies of all leases for the subject apartment 
      effective on and after April 1, 1984, but the owner did not submit such 

      In the ensuing order, here appealed, the Administrator established the 
      "April 1, 1984 Initial Legal Registered Rent" at $266.07 per month and, 
      calculating permissible increases over that amount for leases commencing 
      on April 1, 1986 and April 1, 1987, totalled the monthly overcharges, 
      trebled that sum and added excessive security that the tenant had 
      deposited, in arriving at a total overcharge of $4,967.44.

      In this petition, the owner states in substance: that in 1985 one 
      Barbara Kramer entered into a two-year vacancy lease for the subject 
      apartment at a monthly rental of $312.75; that on April 1, 1986, one 
      Heng Soon Chang signed a one-year vacancy lease for $377.71; and that 
      "[o]n March 20, 1986, [the complainant] was given apartment 6B under the 
      condition that she continue the lease which Mr. Chang had until December 
      31, 1986[, a]fter which Ms. Zambrano would then renew her lease with a 
      vacancy lease."  The petition is accompanied by a copy of the Chang 

      After careful consideration of the record herein, the Commissioner is of 
      the opinion that this petition should be denied.

      There is no substantiation by lease or rent roll, of the Kramer tenancy, 
      and no substantiation whatsoever of the alleged agreement with the 

          EH 610247 RO

      complainant (assuming such agreement would have been effective) when she 
      assumed occupancy.  As for the Chang tenancy, the proffered 
      substantiation comes too late.  Petitioner has suggested no reason for 
      the Commissioner to depart from the general Division policy of refusing 
      to consider, for the first time on appeal, evidence that should and 
      could have been presented to the Rent Administrator.  Accordingly, the 
      Rent Administrator's order was warranted.

      The owner is directed to reflect the findings and determinations made in 
      the Rent Administrator's order on all future registration statements, 
      including those for the current year if not already filed, citing this 
      order as the basis for the change.  Registration statements already on 
      file, however, should not be amended to reflect the findings and 
      determinations made in this order.  The owner is further directed to 
      adjust subsequent rents to an amount no greater than that determined by 
      the Rent Administrator's order plus any lawful increases.

      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 Rent Stabilization Law and Code, it is

      ORDERED, that this petition be, and the same hereby is, denied; the Rent 
      Administrator's order herein remains in effect.


                                      JOSEPH A. D'AGOSTA
                                      Deputy Commissioner

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