Adm. Review Docket Number: ARL 06597.U
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 : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: ARL 06597-U
:
ALBERT EDWARDS, DISTRICT RENT ORDER
DOCKET NO.: T/A 11522
PETITIONER :
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On December 2, 1985 the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
October 29, 1985 by the Rent Administrator, 2 World Trade Center,
New York, N.Y., concerning housing accommodations known as 522 West
145th Street, New York, N.Y., Apartment A.
The Commissioner notes that this proceeding was initiated prior to
April 1, 1984. Section 2526.1(a) 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 of 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 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 August 19, 1983 by the tenant
filing a fair market rent adjustment application. The tenant
indicated that she took occupancy of the subject apartment pursuant
to a lease commencing October 18, 1982 and ending October 17, 1984
at a monthly rental of $230.00. The tenant further indicated that
she did not receive an Initial Legal Regulated Rent Notice (DC-2
notice) from the owner.
The owner was served with a copy of the application and directed to
submit comparability data. In response, the owner submitted
information for apartments in the "A" line of the subject building.
In Order Number CTA 0561, the Rent Administrator established the
fair market rent at $84.57 effective October 18, 1982, the
commencement date of the initial rent stabilized lease. The Rent
Administrator determined that the owner had not submitted sufficient
comparability data and, based thereon, determined the fair market
rent based solely on the Special Fair Market Rent Guidelines. The
Rent Administrator further determined that the owner had collected
excess rent in the amount of $6,001.80 through November 17, 1985 and
directed the owner to refund the excess rent to the tenant.
In this petition, the owner contends that when he purchased the
subject building at a public auction in 1977 the rents has been set
Adm. Review Docket Number: ARL 06597.U
by the City of New York, that since the purchase the subject
apartment has been occupied by several different tenants and that
the rent charged the subject tenant was proper.
In response to the petition, the tenant asserts, in substance, that
the owner has made false allegations.
The Commissioner is of the opinion that this petition should be
denied.
Section 26-513 of the Rent Stabilization Law provides in pertinent
part that fair market rent adjustment applications are to be
determined by the use of special fair market rent guidelines order
promulgated by the New York City Rent Guidelines Board and by the
rents generally prevailing in the same area for substantially
similar housing accommodations. In order to determine rents
generally prevailing in the same area for substantially similar
housing accommodations, it is Division policy to allow owners to
submit the required comparability data. In cases where an owner
fails to submit the required comparability data, the fair market
rent is determined solely on the basis of the special fair market
rent guidelines order. Section 26-513 further provides that where
it is determined that the rent charged is in excess of the fair
market rent, the Commissioner shall order a refund of any excess
rent paid since January 1, 1974 or the date of commencement of the
tenancy, whichever is later.
In this case, the owner did not produce any evidence to show that he
had properly served a DC-2 notice upon the first stabilized tenant
of the subject apartment although afforded the opportunity to do so.
Further, the owner has not submitted any evidence in support of its
contention on appeal that the subject building was purchased from
the City of New York. Accordingly, the Rent Administrator properly
accepted the tenant's fair market rent appeal and properly set the
fair market rent in accordance with the Rent Stabilization Law and
DHCR procedure.
Because this determination concerns lawful rent only through
November 17, 1985, the owner is cautioned to adjust subsequent rents
to an amount no greater than that determined by this Order and
Opinion and to register any adjusted rent with this Order and
Opinion being given as explanation for the adjustment. A copy of
this Order and Opinion is being sent to the tenant now in occupancy.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
it is
Adm. Review Docket Number: ARL 06597.U
ORDERED, that this petition be, and the same hereby is, denied, and
the Rent Administrator's order be, and the same hereby is, affirmed.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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