DOC. NO.: AL 210064-RO
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 210064-RO
79 BAY RIDGE ASSOCIATES, : DRO DOCKET NO.:
PETITIONER : TC 079077-G
ORDER AND OPINION DENYING PETITION FOR
ADMINISTRATIVE REVIEW PETITION AND MODIFYING
On December 12, 1986 the above-named petitioner filed a Petition for
Administrative Review against an order issued on November 7, 1986 by
the Administrator, (Columbus Circle) concerning housing accommodations
known as Apartment E7, 7901 Fourth Avenue, Brooklyn, New York, wherein
the Administrator determined the tenant's overcharge complaint,
established the legal stabilized rent and order a refund.
The Commissioner has reviewed all of the evidence in the record and
has carefully considered that portion of the record relevant to the
issues raised by the administrative appeal.
This proceeding was originally commenced on November 3, 1983 by the
tenant filing an overcharge complaint with the former New York City
Conciliation and Appeals Board (CAB).
The owner was served with a copy of the complaint and was requested to
submit rent records from the base date to prove the lawfulness of the
rent being charged. In answer to the complaint the owner stated that
it acquired title to the premises on October 6, 1980; and that it did
not receive the base date lease of the subject apartment from the
prior owner. The owner submitted an incomplete set of leases from
June 1, 1978.
Based upon a finding that the owner failed to submit a complete rent
history the Administrator applied the Section 42A default procedures,
established the lawful stabilization rent at $364.52 per month and
ordered a roll back in the rent and a refund in the amount of
$4752.91, including interest for the period from April 1, 1984 through
May 31, 1987.
DOC. NO.: AL 210064-RO
In this petition the owner asserts, in relevant part, that the
Administrator erred by reflecting overcharges through November 1986
since the then tenant had purchased the subject apartment on October
9, 1985. The owner further alleges that it never received a copy of
the overcharge complaint.
In answer to the petition, the tenant contends, in substance, that the
owner did receive a copy of the overcharge complaint because the owner
responded to the proceeding below but failed to submit a complete
rental history for the apartment. The tenant further states, in
substance, that the subject apartment was converted to cooperative on
October 5, 1985.
In response, the owner contends, in substance, that the prior occupant
was the first stabilized tenant after vacancy decontrol; and that it
had submitted said tenant's vacancy lease, and thus fully complied
with the DHCR request. The owner further urges that it is not
required to submit proof of the date of decontrol since the Division
could ascertain same from their own records.
After careful consideration of the entire record, the Commissioner is
of the opinion that this petition should be denied.
Section 42A of the former Rent Stabilization Code requires that an
owner retains complete rent records for each stabilized apartment in
effect from June 30, 1974 (or the date the apartment became subject to
rent stabilization, if later) to date and to produce such records to
the DHCR upon demand. If the apartment was decontrolled from the Rent
Control Law after June 30, 1974 the owner must provide proof of the
apartment's date of decontrol, and produce a rental history from the
A review of the record in the proceeding below discloses that the
owner failed to submit a complete rental history from the base date,
June 30, 1974. The owner has failed to submit any evidence in the
form of a report of decontrol or any relevant document in order to
show the date when the apartment first became subject to Rent
Stabilization. Nevertheless, a review of the Division records further
discloses that the subject apartment was decontrolled on September 25,
1972. Thus, June 30, 1974 is the base date for the subject apartment.
Accordingly, the Commissioner is of the opinion and finds that the
Administrator properly found the owner in default and determined the
rent pursuant to default procedures. However, in
light of the tenant's confirmation, on appeal, that she purchased the
DOC. NO.: AL 210064-RO
apartment on October 9, 1985, the Administrator's order should be
modified by limiting the overcharge for the period from June 1, 1981
to October 1, 1985, resulting in a lower total overcharge of $3337.84.
This order, may upon the expiration of the period in which the owner
may institute a proceeding pursuant to Article Seventy Eight of the
Civil Practice Law and Rules, be filed and enforced by the former
tenant (Charlotte Krasman) in the same manner as a judgment for
$3337.84 against the owner, 7901 Bay Ridge Associates.
THEREFORE, in accordance with the Rent Stabilization Law and Code, it
ORDERED, that this petition be, and the same hereby is, denied; and
that the Rent Administrator's order be, and the same hereby is
modified by deleting such portion of overcharge computed after October
1, 1985 and by adjusting the total amount of overcharge from $4752.91
to $3337.84; and that as so modified said order be and the same hereby