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  S.J.R. NO. 7482
          IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
          APPEAL OF                              DOCKET NO. EA410336RO
               ZEAL MANAGEMENT CORP.          :  DRO DOCKET NO.L3114787RT
                                                 TENANT: WILLIAM MCINTYRE
                                PETITIONER    : 
          ------------------------------------X                             
           ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN 
          PART


               On January 31, 1990, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          December 27, 1989, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 105 West 72nd Street, New York, New York, Apartment No. 8B,  
          wherein the Rent Administrator determined the fair market rent 
          pursuant to the special fair market rent guideline promulgated by 
          the New York City Rent Guidelines Board for use in calculating fair 
          market rent appeals and a comparability study.
               
               The Commissioner notes that this proceeding was filed prior to 
          April 1, 1984.  Sections 2526.1 (a) (4)  and 2521.1 (d) of the Rent 
          Stabilization Code (effective May 1, 1987) governing rent overcharge 
          and fair market rent proceedings provide that determination of these 
          matters be based upon the law or code provisions in effect on March 
          31, 1984.  Therefore, unless otherwise indicated, reference to 
          Sections of the Rent Stabilization Code (Code) contained herein are 
          to the Code in effect on April 30, 1987.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 26-513 of the Rent Stabilization Code.

               The issue herein is whether the Rent Administrator's order was 
          warranted.

               The Commissioner has reviewed all of the evidence in the record 
          and has carefully considered that portion of the record relevant to 
          the issue raised by the administrative appeal.  

               This proceeding was commenced by the tenant's filing of a fair 
          market rent adjustment application in March 1984.  In such 
          application the tenant stated that he first moved to the subject 
          apartment on May 1, 1975 at a rental of $425.00 per month.

               During the course of the proceeding before the Rent 
          Administrator, the owner 105 West 72nd Associates advised that it 
          had purchased the subject premises on August 17, 1984.

               In Order Number L3114787RT, the Rent Administrator adjusted the 









          EA410336RO


          initial legal regulated rent by establishing a fair market rent of 
          $334.89 effective May 1, 1975, the commencement date of the initial 
          rent stabilized lease.   The Rent Administrator also directed that 
          the owner refund excess rent of $17,462.10 to the tenant covering 
          the period from May 1, 1975 to April 30, 1988.  The Rent 
          Administrator's order listed the prior owner Lynned Realty Corp. and 
          the owner herein 105 W. 72nd Associates as owners in the caption of 
          the order but did not allocate the excess rent between these owners.

               In this petition, the owner Zeal Management Corp. (the managing 
          agent for 105 W. 72nd Associates) alleges in substance that it 
          acquired the subject premises on August 17, 1984 and should not be 
          liable for excess rent collected prior to that date.  In support of 
          such contention, the owner submitted a copy of the deed by which it 
          purchased the subject premises.

               In answer to the owner's petition, the tenant stated in 
          substance that he feels the rent overpayments from 1975 should be 
          refunded to him.    

               The Commissioner is of the opinion that this petition should be 
          granted in part.

               Pursuant to Policy Statement 93-1 where a current owner is a 
          party to a fair market rent appeal, DHCR shall order the current 
          owner to refund to the tenant all excess rent paid by the tenant 
          since April 1, 1984 or the commencement date of the tenant's initial 
          lease, whichever is later, notwithstanding that all or a portion of 
          the excess rent was collected by one or more prior owners.  A 
          current owner will be jointly liable with a prior owner for excess 
          rent collected by a prior owner and each owner will remain severally 
          liable for the excess rent collected by each owner.

               Therefore the prior owner Lynned Realty Corp. is individually 
          responsible for excess rent collected from May 1, 1975 to April 1, 
          1984 or $10,975.84, the prior owner Lynned Realty Corp. and the 
          current owner 105 West 72nd Associates (care of Zeal Management now 
          Streamline Management, Inc.) are jointly and severally liable for 
          excess rent collected from April 1, 1984 to September 1, 1984 or 
          $620.76, and the current owner 105 West 72nd Associates (care of 
          Zeal Management now Streamline Management, Inc.) is individually 
          responsible for excess rent collected between September 1, 1984 
          through April 30, 1988 or $5,865.50 ( inclusive of excess security).

               The owner is directed to reflect the findings and 
          determinations made in this 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 this order plus any lawful 
          increases.







          EA410336RO


               The current owner is directed to roll back the rent to the 
          lawful stabilized rent consistent with this determination and to 
          refund or fully credit against future rents over a period not 
          exceeding six months from the date of receipt of this order, the 
          excess rent collected by the current owner plus joint and several 
          liability of the excess rent collected from April 1, 1984 to 
          September 1, 1984 as detailed above.

               In the event the current owner does not take appropriate action 
          to comply within sixty (60) days from the date of issuance of this 
          order, the tenant may credit the excess rent collected by the 
          current owner plus the excess rent collected from April 1, 1984 to 
          September 1, 1984 against the next month(s) rent until fully offset.

               THEREFORE, in accordance with the provisions of the Rent 
          Stabilization Law and Code, it is

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, granted in part, and, that the order of the Rent 
          Administrator be, and the same hereby is, modified in accordance 
          with this order and opinion.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner






                     




























          EA410336RO











    

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