ADM. REVIEW DOCKET NO.: AK 610001 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
------------------------------------X S.J.R. 5839
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:
AK 610001 RO
:
DRO DOCKET NOS.:
B-3101397-R
CDR 25,476
VALROSE REALTY COMPANY,
Tenant: Victor Morales
PETITIONER :
------------------------------------X
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On November 4, 1986, the above named petitioner-current
owner filed a Petition for Administrative Review against an order
issued on October 30, 1986, by the District Rent Administrator,
10 Columbus Circle, New York, New York, concerning housing
accommodations known as Apartment 6P, 5425 Valles Avenue, Bronx,
New York, wherein the District Rent Administrator determined that
the current and prior owners had overcharged the tenant.
On May 8, 1991, the Commissioner denied the current owner's
petition for administrative review. Subsequent thereto, the
current owner filed a petition in the New York State Supreme
Court, Bronx County, pursuant to Article 78 of the Civil Practice
Law and Rules seeking to reverse, annul and set aside the
Commissioner's order of May 8, 1991.
On October 15, 1991 the proceeding was remitted to the
Division for a redetermination of the merits pursuant to a
Stipulation to Remit.
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 issue in this appeal is whether the District Rent
Administrator's order was warranted.
ADM. REVIEW DOCKET NO.: AK 610001 RO
The applicable sections of the law are Section 10B of the
former Rent Stabilization Code and Section 2526.1 of the current
Rent Stabilization Code.
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 commenced on March 18, 1984 by the
tenant's filing of a rent overcharge complaint with the New York
City Conciliation and Appeals Board (CAB), the agency formerly
charged with enforcing the Rent Stabilization Law.
On September 13, 1984, Caultin Management Corporation (the
prior owner's managing agent and the current owner's former
managing agent) was served with a copy of the complaint and was
requested to submit rent records to prove the lawfulness of the
rent being charged.
On January 23, 1986, Caultin Management Corp. was served
with a Notice of Pending Default demanding a full rental history
for the subject apartment from the base rent date. Caultin
Management Corp. did not respond to this notice.
On July 11, 1986 under Docket Number B-3101397-R, the
District Rent Administrator determined that Caultin Management
Corporation had failed to provide a complete rental history for
the subject apartment, and accordingly established the lawful
stabilization rent as $261.26 (the complaining tenant's initial
rent minus a guidelines increase of 11%), determined that the
tenant had been overcharged since June 15, 1975, and directed
Caultin Management Corporation to refund to the tenant $3190.03
which included excess security and interest on that portion of
the overcharge occurring on or after April 1, 1984.
On July 21, 1986 the Administrator reconsidered the record
and decided to revoke his order of July 11, 1986.
On July 21, 1986, Arnold S. Warwick & Co., Ltd. (a
subsequent managing agent of the current owner) was served with a
copy of the tenant's complaint and was requested to submit rent
records to prove the lawfulness of the rent being charged.
On August 11, 1986, Arnold S. Warwick & Co., Ltd. was served
with a Final Notice of Pending Default demanding complete copies
of all leases from the base rent date to the date on which the
complaining tenant took occupancy, and documentation to
substantiate the base rent date if the base rent date was after
April 30, 1974.
On August 25, 1986, the current owner, through its attorney,
informed the Division of Housing and Community Renewal (DHCR)
that Valrose Realty Company acquired the subject building on
January 1, 1983, that complete lease histories were never
provided to the current owner, that the December 1972/January
1973 rent for the subject apartment was $275.00, that the
ADM. REVIEW DOCKET NO.: AK 610001 RO
December 1973 rent was projected to be the same amount, but that
the rent was projected to increase to $303.88 for the years
ending in December 1974 and December 1975, and that the
complaining tenant's initial rent of $290.00 was less than the
projected 1975 rent of $303.88. In support of these contentions,
the current owner submitted a rent schedule for the subject
building listing the actual rents charged in December 1972 and
the projected rents for the end of the years 1973, 1974 and 1975;
a current rent roll for the subject building and a rent
calculation chart for apartment S1-B.
In Order CDR 25,476 issued October 30, 1986, the District
Rent Administrator determined that the current and prior owners
had failed to provide a complete rental history for the subject
apartment, and accordingly established the lawful stabilization
rent as $261.26 (the complaining tenant's initial rent minus a
guidelines increase of 11%), determined that the tenant had been
overcharged since June 15, 1975, directed the prior owner to
refund to the tenant the overcharges collected from June 15, 1975
through December 31, 1982, and directed the current owner to
refund to the tenant the overcharges collected since January 1,
1983.
In this petition, the current owner contends in substance
that the District Rent Administrator's order is incorrect and
should be revoked because the owner did not obtain complete rent
records when it acquired the subject property in January of 1983.
The owner's attorney has since obtained rent rolls for some
periods prior to January of 1983 which indicate that the January
1, 1973 rent was $275.00 with the rents as of December 1974 and
December 1975 projected at $303.88, and that no overcharge
occurred.
In response, the tenant contends in substance that the
owner's petition should be denied because the owner has yet to
provide a complete rental history for the subject apartment.
The Commissioner is of the opinion that this petition should
be granted.
A review of the record in the instant case indicates that
the current owner did supply to the Rent Administrator sufficient
data in the form of leases, rent ledgers and a rent schedule, to
construct a complete rental history for the subject apartment
from the base rent date. Accordingly, the Commissioner has
recomputed the lawful stabilization rents and amounts of
overcharge on the amended rent calculation chart attached hereto
and made a part hereof. As shown on the chart, the tenant was
overcharged a total of $74.16 for the period from July 1, 1978
through June 30, 1979 by a prior owner, Harder Realty
Corporation. The Commissioner notes that the Administrator
incorrectly listed Caultin Management Corporation as being the
managing agent of the prior owner, Harder Realty Corporation. As
shown on the amended rent calculation chart, neither Caultin
ADM. REVIEW DOCKET NO.: AK 610001 RO
Management Corporation nor the current owner, Valrose Realty
Company, have overcharged the tenant.
The Commissioner further notes that the prior owner, Harder
Realty Corporation, was not named by the tenant in this
proceeding and has not been served to date. This order is
therefore issued without prejudice to the tenant's right, if any,
to proceed against Harder Realty Corporation.
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 Rent Stabilization Law
and Code, it is
ORDERED, that this petition be, and the same hereby is,
granted, and that the District Rent Administrator's order be, and
the same hereby is, modified in accordance with this order and
opinion.
The lawful stabilization rents and amounts of overcharge are
established on the attached chart which is fully made a part of
this order.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
|
