DOCKET NUMBER: AL 410515-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 410515-RO
DRO DOCKET NO.: L 3116364-R
OMEGA MANAGEMENT PETITIONER :
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On December 24, 1986, the above named petitioner-owner filed a Petition
for Administrative Review against an order issued on November 20, 1986, by
the District Rent Administrator, 10 Columbus Circle, New York, New York,
concerning housing accommodations known as Apartment 10G, 241 East 76th
Street, New York, New York, wherein the District Rent Administrator
determined that the owner had overcharged the tenant.
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.
The applicable sections of the law are Section 2521 of the current Rent
Stabilization Code and Section 20A of the former 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 30, 1984, by the tenant's (Ann
Marie Stanton) 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, wherein the tenant stated that
she moved from apartment 4A to apartment 10G of the subject building on
February 28, 1975, and questioned the rental amounts for both apartments.
In its answer to the tenant's complaint, the owner, through its former
attorney, contended in substance that with regard to the August 1, 1972
rental of apartment 4A, the vacancy factor had no restriction due to
vacancy destabilization, and with regard to the March 1, 1975 rental of
apartment 10G, the owner was entitled to a 1/2% stabilizer rent increase
pursuant to Guidelines 6a & 6c. The owner also contended that it was
informed by an employee of the Division of Housing and Community Renewal
(DHCR) that the tenant's complaint did not require the owner to submit
leases for apartment 10G. The owner submitted along with its answer a
DOCKET NUMBER: AL 410515-RO
copy of the tenant's three year vacancy lease for apartment 10G commencing
March 1, 1975.
On June 10, 1986, the owner's former attorney was served with a final
notice of pending default demanding copies of all leases for apartment 10G
covering the entire period 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 June 30, 1974.
In Order Number CDR 27,260 issued November 20, 1986, the District Rent
Administrator determined that the owner had failed to submit a complete
rental history for apartment 10G, that the tenant had been overcharged
since March 1, 1975, and accordingly directed the owner to refund to the
In this petition, the owner contends in substance that the District Rent
Administrator's order is incorrect and should be reversed because:
1) the owner was denied an adequate opportunity to submit the
rental history for the subject apartment;
2) the owner's former attorney, instead of the owner, was
notified of the pending default, but failed to take
3) had the owner been notified, it would have submitted all the
leases for the subject apartment; and
4) the rental history for the subject apartment reveals that no
In support of these contentions, the owner submits a complete rental
history for the subject apartment covering the period from September 1,
1967 through February 28, 1988.
The tenant did not submit a response to the owner's petition.
The Commissioner is of the opinion that this petition should be granted.
A review of the record in the instant case discloses that the owner, in
its answer to the tenant's complaint, stated that it was told by an
employee of DHCR that the leases for the subject apartment were not
needed. Due to this misinformation, coupled with the facts that the
tenant had questioned the rents of two different apartments and that the
owner had changed attorneys prior to the issuance of the Administrator's
order and apparently was never apprised of the final notice sent by DHCR,
the Commissioner accepts the rental history submitted by the owner on
appeal and has recalculated the lawful stabilized rents on the amended
rent calculation chart attached hereto and made a part hereof. As shown
on the chart, the tenant has not been overcharged.
The Commissioner notes that the tenant's three year vacancy lease for
apartment 4A commenced on August 1, 1972 during the period of vacancy
destabilization. Accordingly, the base rent date for apartment 4 x A is
June 30, 1974 with an initial legal regulated rent of $250.00. Thus, the
tenant was not overcharged during her occupancy of apartment 4A.
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 tenant vacate after the
issuance of this order or have already vacated, said arrears shall be
DOCKET NUMBER: AL 410515-RO
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,
revoked. The lawful stabilization rents are established on the attached
chart which is fully made a part of this order.