GA 210062 RO

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

      APPEAL OF                              DOCKET NO. GA 210062 RO

                                          :  DISTRICT RENT OFFICE
           Ed Frohman,                       DOCKET NO. ZDK 210061 R
           628 - 2nd Street Realty,         
                                             TENANT: John Pease               
                            PETITIONER    : 


      On January 22, 1992, the above-named petitioner-owner filed a Petition 
      for Administrative Review against an order issued on December 19, 1991, 
      by the Rent Administrator, Gertz Plaza, 92-31 Union Hall Street, 
      Jamaica, New York, concerning the housing accommodations known as 628 
      Second Street, Brooklyn, New York, Apartment No. 6, 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 

      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 by the filing of a rent 
      overcharge complaint by the tenant in November 1989.  The owner was 
      served with a copy of the tenant's complaint.

      The owner failed to respond to the tenant's complaint.

      In Order Number ZDK 210061 R, the Rent Administrator determined that  
      due to the owner's failure to submit a complete rental history, the 
      owner had collected a rent overcharge of $3569.40 including treble 
      damages on that portion of the overcharge occurring on and after April 
      1, 1984.

      Further, the Rent Administrator froze the rent established in the order 
      due to the owner's failure to completely register the subject apartment 
      for the years 1985 through 1991 and advised the owner that upon proper 
      registration the rents may be restored prospectively.

      In this petition, the owner contends in substance that on November 22, 

          GA 210062 RO

      1991, it had advised the Rent Administrator that the prior tenant 
      occupied the apartment from January 1986 to October or November 1988 and 
      paid $700.00; it can provide several checks received from the prior 
      tenant and his name and phone number; the complainant's rent of $650.00 
      can not be an overcharge because it is less than the prior tenant's 
      rent; the current owner purchased the subject building about April 13, 
      1987 and was not aware of DHCR Rules and Regulations.

      In answer to the owner's petition, the tenant stated in substance that 
      ignorance of DHCR regulations does not excuse the owner for overcharging 
      and questioned why the owner failed to state the prior rental history to 
      the Rent Administrator.

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

      An examination of the record in this case discloses that the owner has 
      submitted no substantiation either in the proceeding before the Rent 
      Administrator or on appeal that it responded to the tenant's complaint 
      on November 22, 1991; no record of the owner's response is found in the 
      docket; the owner has offered no substantiation of his contentions 
      concerning the prior rent by the submission of rental documents nor 
      submitted proof that the apartment was timely and completely registered 
      with DHCR and the tenant served a copy of the initial registration.

      Accordingly, the Rent Administrator's order was warranted.

      Because this determination concerns lawful rents only through       
      November 30, 1989, the owner is cautioned to adjust subsequent rents to 
      an amount no greater than that determined by the Rent Administrator's 
      order plus any lawful increases, and to register any adjusted rents with 
      this order and opinion being given as the explanation for the 

      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 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.


                                      JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner


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