DOCKET NUMBER: ARL-10432-Q
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 NUMBER: ARL-10432-Q
:
THE ARGO CORPORATION, : D.R.O. DOCKET NO. CDR 15,905
:
: TENANT - TANIA KOVACS
PETITIONER :
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ORDER AND OPINION GRANTING IN PART PETITION
FOR ADMINISTRATIVE REVIEW
On May 22, 1986 the above-named petitioner filed a Petition for
Administrative Review against an order issued on May 5, 1986
by the District Rent Administrator, 10 Columbus Circle, New York,
New York, concerning housing accommodations known as
Apartment 3-N, 65-65 Wetherole Street, Rego Park, New York,
wherein the Administrator directed the owner to roll back the
rent and to refund overcharges in the amount of $882.11.
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.
The tenant initiated this proceeding on March 23, 1984 by filing
a complaint of rent overcharge with the New York City
Conciliation and Appeals Board (CAB) alleging that the owner had
not provided a lease history.
On November 4, 1984, a copy of the complaint was served on the
owner.
In response the owner submitted a complete rental history
including a set of leases from the base date. In the tenant's
initial lease was a tenant-signed notation that the rent included
an $8.00 charge for a new refrigerator and a new stove
In response to a Division request for a copy of the bill for the
refrigerator and stove, the owner asserted that it had not owned
the property prior to 1982 and that it was unable to obtain the
bill from the prior owner.
In the order here under review, the Administrator determined that
the owner was not permitted to increase the monthly rent for the
unsubstantiated cost of a new refrigerator and a new stove, and
further determined that the owner had collected an over-charge
DOCKET NUMBER: ARL-10432-Q
since 1975. The Administrator directed the owner to refund
overcharges of $882.11 inclusive of interest on the overcharges
collected on or after April 1, 1984.
In the appeal, the owner states that since it did not take title
to the subject premises until January 1982, it is not responsible
for overcharges collected before that time. Moreover, the owner
contends that the Administrator ignored the evidence submitted
which indicated that the tenant knew and consented to the additional
charges for the refrigerator and stove.
The tenant replied that the overcharge finding should be upheld.
The Commissioner is of the opinion that this petition should be
granted in part.
Code Section 2522.4 provides in pertinent part for a rent increase
where there has been an installation of new equipment. The amount
of the increase permitted is dependent on the actual cost of the
installation. Accordingly, the Division requires proof, such as
paid invoices or cancelled checks, of the cost of such
installations. The tenant's consent to the charge does not
adequately meet this requirement. Therefore the administrator
properly did not include the charge in the legal stabilized rent.
Code Section 2526.1(f)(1) provides that for complaints filed prior
to April 1, 1984 an owner will be held responsible only for his or
her portion of overcharges collected prior to April 1, 1984 in the
absence of collusion or any relationship between such owner and
prior owners. In the instant case, the owner took title in January
1982. There is no evidence of collusion or a relationship.
Therefore, the Commissioner finds that the current owner is
responsible for all overcharges since January 1982 or $387.81. The
former owner, Forester Realty Company is responsible for overcharges
in the amount of $494.30.
The tenant may credit no more than 20% of the overcharge owed by
the current owner against the rent. The tenant may seek to recover
the overcharges owed by the former owner in a court of competent
jurisdiction.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
it is
ORDERED that the petition be and the same hereby is, granted in
part, and the Rent Administrator's order be, and the same hereby
is, modified, in accordance with this order and opinion.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
ADMINISTRATIVE REVIEW BUREAU
COVERING MEMORANDUM
ARB Docket No.: ARL-10432-Q
DRO Docket No/Order No.: CDR 15,905
Tenant(s): TANIA KOVACS
Owner: THE ARGO CORPORATION
Code Section: 2522.4; 2526.1(f)(1)
Premises: 65-65 WETHEROLE STREET, REGO PARK, NY, APARTMENT 3-N
ORDER AND OPINION GRANTING IN PART PETITION
FOR ADMINISTRATIVE REVIEW
The owner took title to the subject property in January 1982 and
therefore is responsible only for overcharges collected since that
time. The owner did not submit a paid bill or cancelled check for
the installation of new appliances and therefore cannot get a rent
increase based on the installation.
APPROVED:
Processing Attorney:
Supervising Attorney:
Bureau Chief:
Deputy Counsel:
Deputy Commissioner:
Mailed copies of Order and Determination to:
Tenant(s)
Owner
Tenant's Atty.
Owner's Atty.
Date: : by
signature
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