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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 110471 RO
JOSEPH NADOFF,
DRO DOCKET NO.: Q 3120898 R
(CDR 22,493)
TENANT: JANET MARKS
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN PART
On October 20, 1986, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
September 17, 1986, by the Rent Administrator, 10 Columbus
Circle, New York New York, concerning the housing accommodations
known as 81-05 35th Avenue, New York, Apartment No. 4M, 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 by the filing on March
29, 1984 of a rent overcharge complaint by the tenant.
In answer to the complaint, the owner submitted a complete rental
history.
In Order Number CDR 22,493, the Rent Administrator established
the lawful stabilization rent as $289.04 effective April 1, 1985,
determined that the tenant had been overcharged and directed a
refund to the tenant of $6,712.94 including interest on that
portion of the overcharge collected on and after April 1, 1984.
In this petition, the owner alleges in substance that he was not
aware of any rent overcharges; that the Administrator failed to
credit the owner with the MCI increase granted in Order Number
ZQS 000251 OM; and that since he purchased the subject building
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on September 1, 1981, he should be only responsible for the
overcharge from that date. The former owner was Muray Fireston.
In answer to the owner's petition, the tenant stated in
substance that she felt the owner was aware of the overcharges.
The Commissioner is of the opinion that this petition should be
granted in part.
An examination of the records in this case discloses that the
Administrator failed to credit the owner with the MCI increase
granted in Order No. ZQSI 000251 OM. However, the MCI increase
is only effective September 1, 1986 and the Administrator only
calculated rents through August 31, 1986. Accordingly, the
Administrator correctly did not mention the MCI increase in his
Order.
With regard to the owner's contention that he was not aware of
the overcharges the record reveals that the owner was aware or
should have been aware of the overcharges as the owner had a
complete rental history for the subject apartment.
Section 2526.1(f) of the Rent Stabilization Code provides in
pertinent part that for overcharges collected prior to April 1,
1984, an owner will be held responsible only for his or her
portion of the overcharge, in the absence of collusion or any
relationship between such owner and any prior owners, and that
for overcharge complaints filed or overcharges collected on or
after April 1, 1984, a current owner shall be responsible for all
overcharge penalties, including penalties collected by any prior
owner.
In the instant case, an examination of the records discloses
that there is no evidence of collusion or any relationship
between the present owner and any prior owner. Pursuant to
Section 2526.1 (f), the prior owner Muray Fireston is
individually responsible for overcharges collected from March 15,
1981 until August 31, 1981 in the amount of $330.12 and the
current owner is liable for overcharges collected between
September 1, 1981 until August 31, 1986 in the amount of
$6,382.82.
The Commissioner notes that the prior owner was not served with a
copy of the tenant's complaint nor listed in the Rent
Administrator's order. This order is issued without prejudice to
the tenant's rights, if any, to proceed against the prior owner
in a court of competent jurisdiction.
Because this determination concerns lawful rents only through
August 31, 1986, the owner is cautioned to adjust subsequent
rents to an amount no greater than that determined by this order
plus any lawful increases including the above mentioned MCI
increase, and to register any adjusted rents with this order and
opinion being given as the explanation for the adjustment.
Regarding the overcharge attributable to the current owner, this
order may, upon the expiration of the period in which the owner
may institute a proceeding pursuant to Article 78 of the Civil
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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
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ORDERED, that this petition for administrative review be, and the
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same hereby is, granted in part, and, that the order of the Rent
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Administrator be, and the same hereby is, modified in accordance
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with this order and opinion.
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ISSUED
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JOSEPH A. D'AGOSTA
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Deputy Commissioner
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