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

          APPEAL OF                              DOCKET NO. AK 210226 RO
                                              :  DRO DOCKET NO. 74785-G
               DAVID LANDAU                      TENANT: VICKI G. SCHNEIDER

                                PETITIONER    : 


               On November 11, 1986, the above-named petitioner-owner  filed
          a Petition for Administrative Review against an  order  issued  on
          October 7, 1986, by the Rent Administrator,  10  Columbus  Circle,
          New York, New York, concerning the housing accommodations known as 
          8502 Fort Hamilton Parkway, Brooklyn, New York, Apartment No.  6E,
          wherein the Rent  ADministrator  determined  that  the  owner  had
          overcharged the tenant. 

               On June 28,  1989,  the  Commissioner  issued  an  Order  and
          Opinion Denying the Owner's Petition.

               On June 10, 1991, the Commissioner issued an  Order  Granting
          Owner's   Request   for   Reconsideration   and    Reopening    of
          Administrative  Review  Order  on  the  basis  that   said   order
          incorrectly  referred  to  the  subject  premises  as  8502   Fort
          Washington Parkway rather than 8502  Fort  Hamilton  Parkway,  and
          that a copy of the order was not  sent  to  the  current  managing
          agent although said  current  managing  agent  had  registered  as
          managing agent prior to the issuance of the Commissioner's  order.
          In his request for reconsideration,  the  current  managing  agent
          also contended that the  Appellate  Division  decision  in  J.R.D.
          Management v Eimicke infra  issued  prior  to  the  Commissioner's
          order mandates a different result and that the DHCR  was  supplied
          with a complete rental history of the subject apartment from April 
          1, 1980.

               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  in
          AK 210226 RO

          August, 1983, of a rent overcharge complaint  by  the  tenant  who
          stated that she first moved to the  subject  apartment  in  April,
          1980.  The tenant submitted copies of her  leases  from  April  1,

               The owner was served with a copy of  the  complaint  and  was
          directed to submit a  complete  rental  history  for  the  subject
          apartment from the base date including copies of all leases.   The
          owner did not supply a complete rental history as required.

               In Order Number CDR 23,964, 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  $4241.19
          through August 31, 1986, including interest on that portion of the 
          overcharge occurring on and after April 1, 1984, and directed  the
          owner to refund such overcharge to the tenant.

               In this  petition,  the  prior  managing  agent  contends  in
          substance that he was not credited  with  a  $5.97  rent  increase
          effective May 16, 1981 under docket 2AC  570680  due  to  a  major
          capital improvement and that he would submit  further  information
          to justify the tenant's original rent.  No further information was 
          submitted by the prior managing agent.

               In response to  the  prior  managing  agent's  petition,  the
          tenant stated in substance that docket 2AC 570680 refers  to  rent
          controlled tenants only.   In  support  of  such  contention,  the
          tenant submitted a copy of  the  order  issued  under  docket  2AC
          570680.  It is noted that such order affected only rent controlled 

               In response to the Order Granting Reconsideration, the tenant 
          stated in substance that she believes the current  managing  agent
          was notified of the Rent ADministrator's order in that he  reduced
          her rent as of December 1,  1986  and  that  J.R.D.  Management  v
          Eimicke should not be applicable since  the  Rent  Administrator's
          order was issued in 1986 prior to the JRD decision.

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

               Section 42A of the former Rent  Stabilization  Code  requires
          that  an  owner  retain  complete  records  for  each   stabilized
          apartment in effect from June 30, 1974 (or the date the  apartment
          became subject to rent stabilization, if  later)  and  to  produce
          such records to the DHCR upon demand.

               Section 26-516 of the Rent Stabilization Law, effective April 
          1, 1984, limited an owner's obligation to provide rent records  by
          providing that an owner may not be  required  to  maintain  or  to
          produce rent records for more than four (4)  years  prior  to  the
          most recent registration, and concomitantly,  established  a  four
          year limitation on the calculation of rent overcharges.

          AK 210226 RO

               It has been the  DHCR's  policy  that  overcharge  complaints
          filed prior to April 1, 1984, are to be processed pursuant to  the
          Law or Code in effect on March 31, 1984. (see Section  2526.1  (a)
          (4) of  the  current  Rent  Stabilization  Code.)   The  DHCR  has
          therefore applied Section 42A of the  former  Code  to  overcharge
          complaints filed prior to April 1, 1984, requiring  complete  rent
          records in these cases.  In following this policy,  the  DHCR  has
          sought to be consistent with the legislative intent of the Omnibus 
          Housing Act (Chapter 403, Laws of 1983), as implemented by the New 
          York City Conciliation and Appeals  Board  (CAB)  the  predecessor
          agency to the DHCR, to determine rent overcharge complaints  filed
          with the CAB prior to April 1, 1984, by applying the law in effect 
          at the time such complaints were filed so as not to  deprive  such
          tenants of  their  rights  to  have  the  lawful  stabilized  rent
          determined from the June 30, 1974 base  date  and  so  as  not  to
          deprive tenants whose overcharge claims  accrued  more  than  four
          years prior to  April  1,  1984  of  the  right  to  recover  such
          overcharges.  In such cases, if the owner failed  to  produce  the
          required  rent  records,  the  lawful  stabilized  rent  would  be
          determined pursuant to the default procedure approved by the Court 
          of Appeals in 61 Jane Street Associates v. CAB, 65 N.Y.2d 898, 493 
          N.Y. S. 2d 455 (1985).

               However, it has recently been held  in  the  case  of  J.R.D.
          Mgmt. v. Eimicke, 148 A.D.2d 610. 539 N.Y.S. 2d 667 (App. Div.  2d
          Dept., 1989). motion for leave to reargue or for leave  to  appeal
          to the Court of Appeals denied ( App.  Div.  2d  Dept.,  N.Y.L.J.,
          June 28, 1989. p.25, col.1), motion for leave  to  appeal  to  the
          Court of Appeals denied (Court  of  Appeals,  N.Y.L.J.,  Nov.  24,
          1989, p.24, col.4)., motion for leave to reargue denied (Court  of
          Appeals, N.Y.L.J., Feb. 15, 1990, p.25, col.1), that  the  Law  in
          effect at the time of  the  determination  of  the  administrative
          complaint rather than the Law in effect at the time of the filing
          of the complaint must be applied  and  that  the  DHCR  could  not
          require an owner to produce more than four years of rent records.

               Since the issuance of the  decision  in  JRD,  the  Appellate
          Division, First Department, in the case of Lavanant v.  DHCR,  148
          A.D.2d 185, 544 N.Y.S.2d 331  (App.  Div.  1st  Dept.  1989),  has
          issued a decision in direct conflict with the holding in JRD.  The 
          Lavanant court expressly rejected the JRD ruling finding that  the
          DHCR may  properly  require  an  owner  to  submit  complete  rent
          records, rather than records for just four years,  and  that  such
          requirement  is  both  rational  and  supported  by  the  Law  and
          legislative history of the Omnibus Housing Act.

               Since in the  instant  case  the  subject  dwelling  unit  is
          located in the Second  Department,  the  DHCR  is  constrained  to
          follow the JRD decision in  determining  the  tenant's  overcharge
          complaint, limiting the requirement for rent records to  April  1,
          1980.   An examination of the rent  records  from  April  1,  1980
          discloses that no rent overcharge occurred in that  the  April  1,
          1980 rent was $300.00 per month; it was then increased to  $348.00
          per month effective April 1, 1982 upon a lease renewal and  to  AK
          210226 RO

          $362.51 per month effective January 22, 1983 pursuant to  a  4.17%

          major capital improvement rent increase under docket  OM-4237  and
          to $395.14 per month effective April 1, 1985 upon a lease  renewal
          - all in accordance with applicable guideline rate  increases  and
          major capital improvement rent increase rates. 

               With regard to the tenant's contentions, it is noted that the 
          proceeding was properly  reopened  and  that  the  JRD  ruling  is

               If  the  owner   has   already   complied   with   the   Rent
          Administrator's order and there are arrears due to the owner as  a
          result of the instant determination, the tenant shall be permitted 
          to pay off the arrears in twenty four equal monthly  installments.
          Should the tenant vacate after the issuance of this order or  have
          already vacated, said arrears shall be payable immediately.

               THEREFORE, in accordance with the Appellate  Division  ruling
          in JRD, it is

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, granted, that the Commissioner's order  issued
          on June 28, 1989 be, and the same hereby is, revoked, and that the 
          order of the Rent  Administrator  be,  and  the  same  hereby  is,
          revoked,   and   it   is   found   that   no    rent    overcharge


                                          ELLIOT SANDER
                                          Deputy Commissioner


                            ADMINISTRATIVE REVIEW BUREAU
                                 COVERING MEMORANDUM

          ARB Docket No.: AK 210226 RO

          DRO Docket No/Order No.: 74785-G

          Tenant(s): Vicki G. Schneider

          Owner: David Landau

          Code Section: 2526.1 of RSC

          Premises: 8502 Fort Hamilton Parkway, Brooklyn, New York, Apt. 6E

          Order        and         Opinion         Granting         Petition

               Petition granted pursuant to JRD since  rental  history  from
          April 1, 1980 was submitted.  Examination of such  rental  history
          showed there was no rent overcharge.


          Processing Attorney:                                             

          Supervising Attorney:                                            

          Bureau Chief:                                                    

          Deputy Commissioner:                                             

          Mailed copies of Order and Determination to:
                           Tenant's Atty             
                           Owner's Atty              

                           Date:              :  by               



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