AL 110140 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
APPEAL OF ADMINISTRATIVE REVIEW
DOCKET NO.: AL 110140-RO
KRAUS MANAGEMENT,
DRO DOCKET NOS.: Q-3121488-R
CDR 25350
TENANT: RONALD RUBIN
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN PART
On November 26, 1986 the above named petitioner-owner filed a
Petition for Administrative Review against an order issued on
October 27, 1986 by the District Rent Administrator, 10 Columbus
Circle, New York, New York concerning housing accommodations
known as Apartment A at 69-27 136th Street, Flushing, New York
wherein the District Rent Administrator determined that the owner
had overcharged the tenant.
The issue in this appeal is whether the District Rent
Administrator's order was warranted.
The applicable sections of the Law are Section 26-516 of the
Rent Stabilization Law and Sections 2522.4(a) and 2526.1(a) of
the 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 originally commenced by the filing in March,
1984 of a rent overcharge complaint by the tenant, in which he
stated that he had commenced occupancy on December 1, 1983 at a
rent of $542.24 per month.
The owner was served with a copy of the complaint and was
requested to submit rent records to prove the lawfulness of the
rent being charged. In answer to the complaint, the owner
submitted a rental history from the base date. While indicating
that the Guidelines would have allowed the complaint's vacancy
rent to increase only to $376.41 rather than $542.24, the owner
included the order numbers of five Division of Housing and
Community Renewal (DHCR) orders granting rent increase for Major
Capital Improvements (MCI's). Because DHCR orders are filed and
AL 110140 RO
indexed by docket number rather than order number, the
Administrator did not locate or use those orders in calculating
the lawful rent.
In an order issued on October 26, 1986 the District Rent
Administrator determined that the tenant had been overcharged in
the amount of $3,329.94 as of November 30, 1985, and directed the
owner to refund such overcharge to the tenant as well as to
reduce the rent.
In this petition, the owner contends in substance that there was
no rent overcharge in that the District Rent Administrator's
order failed to take into account the M.C.I. increases. With its
petition the owner has enclosed copies of the five M.C.I. orders.
The Commissioner is of the opinion that this petition should be
granted in part.
The owner has now provided copies of DHCR orders which were in
the DHCR's files and which the owner notified the Administrator
of. In response to an April 2, 1991 request to both parties the
owner has submitted monthly records of the tenant for rent due
and rent paid beginning February, 1984. Using these, the
Commissioner has recalculated the lawful stabilization rents and
the amount of overcharge. They are set forth on the amended rent
calculation chart attached hereto and made a part hereof.
Because the tenant has vacated, the full amount of the M.C.I.
increases are applicable to the next tenant, without being
subject to the 6% per year limitation on collectible rent
increases applicable if the complainant had remained in
occupancy.
Because this order, similarly to the order appealed, determines
the lawful rents only through March 31, 1985, the owner is
cautioned to adjust the rents in leases after that date to
amounts no greater than that determined by this order plus any
lawful increases, and to register any adjusted rents with this
order being given as the reason for the adjustment. Because the
tenant herein has vacated, a copy of this order is being sent to
the current tenant.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
ORDERED, that this petition be, and the same hereby is, granted
in part and that the District Rent Administrator's order be, and
the same hereby is, modified in acordnace with this Order and
Opinion. The lawful stabilization rents and the amount of
overcharge are established on the attached chart, which is fully
made a part of this order. The total overcharge is $559.67 as
of March 31, 1985.
ISSUED:
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ELLIOT SANDER
Deputy Commissioner
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