STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: AL 110605-RO
SHARON TOWERS REALTY, DRO DOCKET NO.: Q 3120285-R
PETITIONER : TENANT: JAMES KURASH
ORDER AND OPINION MODIFYING COMMISSIONER'S PRIOR ORDER AND
OPINION AFTER RECONSIDERATION
The above-named petitioner-owner filed a timely Petition for
Administrative Review against an order issued on December 4, 1986, by the
District Rent Administrator, 92-31 Union Hall Street, known as Apartment
2S at 62-59 108th Street, Forest Hills, New York wherein the District Rent
Administrator determined that the tenant had been overcharged.
By Order and Opinion issued on October 18, 1990, the Commissioner granted
the owner's petition in part and recalculated the tenant's lawful
stabilized rent from April 1, 1980.
Thereafter, by letter dated October 29, 1990, the owner requested
reopening and reconsideration of the proceeding. The owner asserted that
the Commissioner's finding of a $7.05 overcharge on the retroactive
arrears collected by the owner pursuant to a major capital improvement
(MCI) increase (Order Number CDR 00771) was incorrect and that the
Commissioner's calculation of the lawful stabilized rent for the lease
period from December 1, 1984 to November 30, 1986 incorrectly failed to
include the MCI increase as part of the base rent.
By order issued on July 17, 1991, the Commissioner granted the owner's
request for reconsideration and reopened the proceeding due to an
irregularity in a vital matter.
Review of the record indicates that the Commissioner's prior finding of an
overcharge of $7.05 on the retroactive arrears collected by the owner
pursuant to Order Number CDR 00771 was correct. The MCI order in question
clearly states that the increase amount of .75% of the August 1982 rent
was to be effective December 1, 1982, i.e., the increase amount was be
added to be lawful stabilized rent as of December 1, 1982 ad collected as
of that date. The owner's calculations indicates that the owner
improperly collected the increase as of August 1, 1982 and improperly
compounded the increase for the lease commencing December 1, 1982. The
proper calculations of the increase amount and arrears follows:
$275.70 August 8, 1982 rent
x.0075 MCI increase CDR 00771
$ 2.07 Amount of increase
DOCKET NUMBER: AL 110605-RO
$ 2.07 Amount of increase
x 23 months
$ 47.61 MCI arrears for the period
12/1/82 to 10/31/84
It is noted that the electrical conversion decrease effective February 1,
1983 did not affect the MCI increase for the lease term then in effect.
The Commissioner therefore affirms an overcharge of $7.05 on the
retroactive MCI arrears collected by the owner [$54.66 (amount collected
by the owner) - $47.61=$7.05].
However, the Commissioner finds that the Commissioner's prior order
incorrectly failed to include the MCI increase as part of the base rent
for the lease commencing December 1, 1984.
Recalculation of the lawful stabilized rent indicates that the tenant was
not overcharged on the lease amounts through December 31, 1986, but that
the tenant was overcharged $7.05 in retroactive MCI arrears under Order
Number CDR 2,053, as indicated on the attached rental history chart. The
total amount of overcharge is $17.74. The owner is directed to refund
this amount to the tenant.
Any arrears owed by the tenant as a result of this order may be paid by
the tenant in equal monthly installments over the course of the next 24
months. Should the tenant vacate after issuance of this order, said
arrears shall be payable immediately.
THEREFORE, in accordance with the Rent Stabilization Law and Code, it is
ORDERED, that the Commissioner's prior order and opinion be and the same
hereby is modified to the extent hereinabove indicated.
JOSEPH A. D'AGOSTA