DOC. NO. AJ 410376-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 410376-RO
DIGBY MANAGEMENT CO., & DISTRICT RENT ORDER
FIRST SUTTON ASSOCIATES, : DOCKET NO.
PETITIONERS : L-3110045-RT
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ORDER AND OPINION GRANTING PETITION FOR
ADMINISTRATIVE REVIEW
On October 17, 1986 the above-named petitioner prior and current owners
filed a Petition for Administrative Review against an order issued on
September 15, 1986 by the Rent Administrator, 92-31 Union Hall STreet,
Jamaica, New York concerning housing accommodations
known as 419 East 57th Street, New York, New York, Apartment 14C.
The Commissioner notes that this proceeding was initiated prior to
April 1, 1984. Sections 2526.1(a) (4) and 2521.1(d) of the Rent
Stabilization Code (effective May 1, 1987) governing rent overcharge
and fair market rent proceedings provide that determination of these
matters be based upon the law or code provisions in effect on March
31, 1984. Therefore, unless otherwise indicated, reference to
sections of the Rent Stabilization Code (Code) contained herein are
to the Code in effect on April 30, 1987.
The Commissioner has reviewed all 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 commenced on March 20, 1984 by the tenant filing
a complaint of rent overcharge. The tenant took occupancy of the
apartment pursuant to a lease commencing January 15, 1974 and
expiring September 30, 1976 at a monthly rental of $650.00.
The current owner was served with a copy of the complaint and
directed to submit complete rental records. In response the owner
submitted a copy of a Landlord's Report of Eligibility for Decontrol
indicating that the subject apartment became decontrolled on October
1, 1968 and copies of leases dating from July 14, 1972.
In Order No. CDR 22,130, the Rent Administrator established the lawful
DOC. NO. AJ 410376-RO
stabilized rent, determined that the tenant had been overcharged in the
amount of $33,698.60, including interest and directed that the
overcharge amount be refunded to the tenant.
In this petition the prior and current owners contend that the subject
apartment was decontrolled in 1968 and remained unregulated until it
became rent stabilized pursuant to the Emergency Tenant Protection Act
on the base date of June 30, 1974, that the Rent Administrator's
calculations were incorrectly based on an earlier base date, that there
is no overcharge, and that in the event an overcharge is found, it
should be allocated between the prior and current owners.
In answer to the petition, the tenant asserts that the owner did not
comply with decontrol requirements by properly executing a lease with
or offering a lease to the tenant then in occupancy.
The Commissioner is of the opinion that this petition should be
granted.
A review of the record reveals that the subject apartment was
decontrolled pursuant to Section 2f(15) of the Rent and Eviction
Regulations. Regarding the tenant's assertion that the owner did not
comply with decontrol requirements, Section 2f(15) of the Regulations
provides, in pertinent part, that where a lease was not executed or
offered within certain specified time periods, the apartment continued
to be subject to rent control until October 1, 1970. In this case,
there is no evidence that the owner executed or offered a lease within
the specified time periods. Accordingly, the Commissioner finds that
the subject apartment continued to be subject to rent control until
October 1, 1970 when it became decontrolled, although the prior rent
controlled tenant remained in occupancy until sometime in December 1973
pursuant to a lease commencing October 1, 1972. The subject apartment
then became subject to rent stabilization pursuant to the Emergency
Tenant Protection Act on June 30, 1974.
The record shows that the lawful stabilized rent for the subject
apartment was computed based on an October 1, 1972 base date.
Accordingly, the Commissioner has recomputed the lawful stabilized rent
from the June 30, 1974 base date as indicated on the chart attached
hereto and made a part hereof and has found that no rent overcharge
occurred.
If there are arrears due to the owner as a result of this
determination, the tenant may pay the arrears to the owner in twenty-
four equal monthly installments.
THEREFORE, in accordance with the provisions of the Rent Stabilization
Law and Code, it is
ORDERED, that this petition be, and the same hereby is, granted, and
DOC. NO. AJ 410376-RO
the Rent Administrator's Order be, and the same hereby is, revoked and
it is found that no rent overcharge occurred.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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