FC110323RO

                                  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 REVIEW
          APPEAL OF                              DOCKET NO. FC110323RO
                                              :  DRO DOCKET NO.ZCC110037R
               PEMBROKE SQUARE ASSOCIATES        TENANT: LEFKOWITZ

                                PETITIONER    : 
          ------------------------------------X                             
             ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


               On March 29, 1991, the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on March 
          15, 1991, by the Rent Administrator, 92-31 Union Hall Street, 
          Jamaica, New York, concerning the housing accommodations known as 
          86-29 155th Avenue, Queens, New York, Apartment No. 3A, wherein the 
          Rent Administrator determined that the owner had overcharged the 
          tenant.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2526.1 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 originally commenced in February, 1988, by 
          the filing of a rent overcharge complaint by the tenant in which the 
          tenant stated in substance that she first moved to the subject 
          apartment in December, 1985, at a rental of $575.00 per month and 
          that she was being  overcharged in that a DHCR order issued under 
          docket CDR 32,602, Q3122497RT had held that a prior tenant was being 
          overcharged.

               The prior owner and current owner were notified of the tenant's 
          complaint and given a chance to respond.  In addition, the current 
          owner was served with a copy of the Rent Administrator's order 
          issued under docket CDR 32,602.  The current owner advised that it 
          could not submit any information as to the cost of any improvements 
          because the prior owner had not supplied documentary evidence 
          supporting same.  In addition, it was established that the tenant 
          herein had purchased the subject apartment as a cooperative 
          effective September 29, 1988.

               In docket number ZCC110037R, the Rent Administrator determined 
          that based on the lawful stabilization rent as established under 
          docket CDR 32,602, a rent overcharge of $15,724.88 had occurred 









          FC110323RO



          during the period from December 1, 1985 through September 28, 1988 
          when the tenant became the owner of the subject apartment.

               In this petition, the current owner alleges in substance that 
          it did not knowingly overcharge the tenant, but that the rent 
          charged was based on the books, records, and representations made by 
          the prior owner.

               In answer to the owner's petition, the tenant stated in 
          substance that the overcharge was willful in that the owner did not 
          abide by the DHCR order finding a rent overcharge for the prior 
          tenant.

               The Commissioner is of the opinion that this petition should be 
          denied.

               The record in the instant case discloses that the DHCR had 
          issued an order under docket CDR 32,602, Q3122397RT, finding a rent 
          overcharge for the prior tenant based upon an examination of the 
          rental history of the subject apartment, and that the owner herein 
          did not reduce the rent for the tenant herein in accordance with 
          such order.  The owner's contention that it was not supplied with 
          the correct rental history by the prior owner does not excuse the 
          overcharge of the tenant herein since it is the owner's duty to 
          obtain an accurate rental history upon its purchase of the subject 
          premises and to charge lawful rents.  Accordingly, the Rent 
          Administrator's order was warranted.

               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.

               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, denied, and, that the order of the Rent 
          Administrator be, and the same hereby is,  affirmed.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner





                     





          FC110323RO