AJ 110405 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.: AJ 110405 RO
Dara Gardens Assoc., DISTRICT RENT ADMINISTRATOR
DOCKET NO.: Q 3119602 R
PETITIONER
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ORDER AND OPINION GRANTING ADMINISTRATIVE APPEAL IN PART
On October 22, 1986 the above-named petitioner-owner filed an
Administrative Appeal against an order issued on September 24,
1986 by the District Rent Administrator, 10 Columbus Circle,
New York, New York, concerning the housing accommodations known
as 150-20 71st Avenue, Flushing New York, Apartment 25.
The Administrative Appeal is being determined pursuant to the
provisions of 9 NYCRR 2526.1(f).
The District Rent Administrator's order, appealed herein,
determined that the tenant had been overcharged a total,
including accrued interest and excess security, of $119.28 during
the period from June 1, 1979 through May 31, 1985.
On appeal, the petitioner-owner alleges, in substance, that it
purchased the subject building on June 6, 1986; that the
Commissioner has held that a current owner must only refund the
overcharges it has collected as long as there is no collusion
between it and the prior owner; that there has been no evidence
of collusion in this proceeding; and that the order should
therefore be modified by holding the owner only responsible for
overcharges it collected since June 1986.
After a careful consideration of the entire evidence of record
the Commissioner is of the opinion that the administrative appeal
should be granted, in part.
Section 9 NYCRR 2526.1(f) provides, in pertinent part, that for
overcharges collected prior to April 1, 1984, an owner will be
held responsible only for its portion of the overcharges, in the
absence of collusion or any relationship between such owner and
any prior owners; and that for overcharges collected on or after
April 1, 1984, a current owner shall be responsible for all
overcharge penalties, including penalties based upon overcharges
collected by any prior owner.
Applying the above-mentioned provisions to the instant
proceeding, the Commissioner finds that the District Rent
Administrator's order should be modified to provide that the
prior owner is responsible for the overcharges collected from
June 1, 1979 through March 31, 1984, totalling $91.84. The
AJ 110405 RO
current owner is jointly and severally responsible with the prior
owner for the balance of the overcharges collected on and after
April 1, 1984. The current owner would be solely responsible for
any overcharges it collected subsequent to the date it acquired
title to the building. This finding is without prejudice to any
action that the current owner may have against the prior owner
for overcharges reimbursed by the current owner which the prior
owner had collected.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that this administrative appeal be, and the same hereby
is, granted, in part, and that the order of the District Rent
Administrator be, and the same hereby is, modified as provided
hereinabove.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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