GB 610354 RO
                                  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



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          IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW    
          APPEAL OF                           DOCKET NO.:  GB 610354 RO

                    B. A. SYSTEMS INC.,
                                              DRO DOCKET NO.: B 003136 R
                                                  
                                              TENANT: LUCIOUS AND VALERIE EVANS
                                 PETITIONERS
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            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          On February 28, 1992, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          February 13, 1992 by the Rent  Administrator  at  Hempstead,  New
          York, concerning the housing accommodations known as 1005  Jerome
          Avenue, Apartment A32, Bronx, New York wherein the  Administrator
          determined that the tenant had been overcharged. 

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

          This proceeding was originally commenced on August 14, 1985  when
          the tenant filed a rent overcharge complaint against  the  former
          owner.

          The current owner was afforded an opportunity to respond  to  the
          complaint and to submit proof of initial registration.

          In response, the owner submitted an incomplete rent  history  and
          asserted that it was not required to submit a rental history  for
          the period prior to April 1, 1984.

          In the order issued  on  February  13,  1992,  the  Administrator
          determined that the owner had failed  to  properly  register  the
          subject apartment, that the tenant had been overcharged and  that
          treble damages were warranted.

          In this appeal, the owner asserts that it  acquired  the  subject
          property on October 3, 1989 as a result of a  judicial  sale  and
          had attempted to  obtain  a  rental  history  from  the  previous
          managing   agent,   a   7A   Administrator,   without    success.
          Furthermore, the  owner  asserts  that  the  apartment  had  been
          registered in 1984.  Therefore, the owner contends that the order 
          should be revoked as there  was  no  overcharge;  any  overcharge
          found was not willful but was the result of  the  Administrator's
          erroneous use of default procedures; and that treble damages were 






          GB 610354 RO
          not warranted.

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

          An Administrative Appeal is not a de novo proceeding and pursuant 
          to Code Section 2529.6, its scope of review is limited  to  facts
          or evidence in the  proceeding  before  the  Rent  Administrator.
          While this matter was pending, the issue of the judicial sale was 
          not  raised  for  consideration.   Accordingly,   it   would   be
          inappropriate to consider such issue in this  appeal.   Moreover,
          the owner has not submitted proof along with its petition that it 
          actually purchased the property at a judicial sale.

          The Commissioner notes that, despite the opportunity  to  do  so,
          the owner failed to submit proof that  the  initial  registration
          was served on the tenant then in occupancy.   Further  the  owner
          has submitted no evidence to show that  the  overcharge  was  not
          willful.  Accordingly,  the  imposition  of  treble  damages  was
          warranted.

          The Commissioner, therefore, finds that the Administrator did not 
          err in establishing the lawful stabilization rent at $231.15  and
          directing a refund of $22,860.21.

          Since the record indicates that the complainant has  vacated  the
          premises, a copy of this order  is  being  sent  to  the  current
          tenant in occupancy.

          Because this determination concerns  lawful  rents  only  through
          July 31, 1989, the owner is cautioned to adjust subsequent  rents
          to an amount no greater than that determined by this  order  plus
          any lawful increases and to register any adjusted rents with this 
          order  and  opinion  being  given  as  the  explanation  for  the
          adjustment.

          This order may, upon the expiration of the period  in  which  the
          owner may institute a proceedi g  pursuant  to  Article  Seventy-
          Eight of the Civil Practice Law and Rules, be filed and  enforced
          by the tenant in the same manner as a judgment.

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

          ORDERED, that this petition be, and the same  hereby  is,  denied
          and that the Rent Administrator's order be, and the  same  hereby
          is, affirmed.


          ISSUED:

                                                  ------------------------
                                                  JOSEPH A. D'AGOSTA
                                                  Acting Deputy Commissioner