AK 410205 RT
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
----------------------------------X S.J.R. 4504, 4454
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: AK 410205 RT
NATHAN COHEN,
DISTRICT RENT ORDER
DOCKET NO.: L-3111260-R
PETITIONER
----------------------------------X
ORDER AND OPINION AFFIRMING THE COMMISSIONER'S ORDER
OF JANUARY 30, 1991 AFTER REOPENING
On November 28, 1986 the above named petitioner-tenant filed a
Petition for Administrative Review against an order issued on
October 27, 1986 by the Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York concerning housing accommodations known
as 60 Gramercy Park, New York, Apartment 8D.
On January 30, 1991, the Commissioner issued an Order and Opinion
in which the amount of the rent overcharge previously determined
by the Commissioner in an Order and Opinion issued on August 15,
1989 under the above mentioned docket number was recalculated to
reflect the tenant's purchase of the subject apartment.
Subsequent thereto, one of the former owners requested reopening
of the subject proceeding. On March 19, 1991, the proceeding was
reopened by the Division of Housing and Community Renewal (DHCR)
for reconsideration due to an irregularity in a vital matter.
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.
In the order of January 30, 1991, the Commissioner found that the
total amount of the overcharge collected from December 1, 1980
through June 13, 1984 was $5,561.79. This Order did not indicate
an apportionment of the overcharge between present and prior owners.
Section 2526.1(f) of the Rent Stabilization Code provides in
pertinent part that:
(1) for overcharges collected prior to April 1,
1984, an owner will be held responsible only
for his or her portion of the overcharges, in
the absence of collusion or any relationship
between such owner and any prior owner; and
(2) for overcharges collected on or after April
AK 410205 RT
1, 1984, a current owner shall be responsible
for all overcharge penalties, including
penalties based upon overcharges collected by
any prior owner.
A review of the entire evidence of record reveals that on June
14, 1984, Gramercy Park Residence Corporation became the owner of
the subject premises pursuant to an agreement executed with 60
Gramercy Park Company/Venture Associates, the owner of the
subject premises at the time the tenant commenced occupancy and
that the tenant became the owner of the subject apartment on the
same date, June 14, 1984, pursuant to a proprietary lease
executed with Gramercy Park Residence Corporation. The record
further shows that Charles Ramat is the president of Gramercy
Park Residence Corporation, was the holder of the unsold shares
in the building until January 1989 and is indicated as the prior
owner for the subject premises in the above referenced Article 78
proceeding (S.J.R. Nos. 4504 and 4454 which were consolidated,
remitted to the DHCR and determined in the Commissioner's Order
of January 30, 1991) and appears to be associated with Ventures
Associates. Based thereon, the Commissioner is of the opinion
that a relationship exists between these parties and finds that
no apportionment is warranted. Accordingly, Gramercy park
Residence Corporation and 60 Gramercy Park Company/Venture
Associates are jointly and severally liable for the entire amount
of the overcharge ($5,561.79) collected from the tenant between
December 1, 1980 and June 13, 1984.
This Order may, upon the expiration of the period in which the
owner may institute a proceeding pursuant to Article 78 of the
Civil Practice Law and Rules, be filed and enforced as a
judgment.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
ORDERED, that Commissioner's Order of January 30, 1991 be, and
the same hereby is, affirmed.
ISSUED:
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ELLIOT SANDER
Deputy Commissioner
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