Docket Number: ARL-3242-K
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-03242-K
:
MID-STATE MANAGEMENT CORP, DRO DOCKET NO. KC-000023-OH
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW, AND
REMANDING THE PROCEEDING FOR FURTHER CONSIDERATION
On May 31, 1985, the above named petitioner-owner filed a Petition
for Administrative Review against a notice dated May 6, 1989, by the
Director of Order Processing at the then 10 Columbus Circle District
Rent Office. The notice advised the owner that the Division was
suspending processing of the owner's alternative hardship rent
increase application on the grounds that as the alternative hardship
procedure only became effective July 1, 1983, the owner could not
use expenses or income for the period January 1, 1983 to June 30,
1983. The owners were afforded 90 days within which to resubmit
their application using a test year commencing no earlier than
July 1, 1983.
In the petition the owner suggests, in essence, that it was
arbitrary, capricious and contrary to law for the Division to refuse
to process the owner's alternative hardship application on such
grounds and requests that the owner's application be processed using
calendar 1983 expenses and income.
The Commissioner concurs.
Section 49 of Chapter 403 of the Laws of 1983, amended subdivision
C of Section YY51-6.0 (recodified as Section 26-511) of the Rent
Stabilization Law, and added a new paragraph 6-a, which instituted
the alternative hardship procedure, effective July 1, 1983.
In the then absence of a Rent Stabilization Code containing
alternative hardship provision, the Division, pursuant to authority
and discretion under Chapter 403 of the Laws of 1983, promulgated
Operational Bulletin 85-2, Rent Increases for Rent Stabilized
Housing Accommodations Based Upon Owner Hardship-Guidelines and
Procedures, to carry out its statutory mandate.
The Rent Stabilization Code, as amended effective May 1, 1987,
incorporated alternative hardship procedures under Section
2522.4(c). Neither the Law, the Code, nor Operational Bulletin
85-2, restrict the use of expenses and income data prior to July 1,
1983.
The Administrator's refusal to consider the owner's application on
the grounds that the income and expenses figures included data for
the months prior to July 1, 1983 served to delay the effective date
Docket Number: ARL-3242-K
for filing alternative hardship application to July 1, 1984.
However, precluding processing of alternative hardship application
prior to July 1, 1984, serves to establish July 1, 1984 as the
effective date of the law. There is no warrant in the language of
Section 49 for such results. Accordingly the Administrator's
findings must be revoked and the matter remanded for further
processing for all purposes. On remand the Rent Administrator shall
consider the record to date. The parties shall be provided the
opportunity to submit additional information and to comment
thereupon.
THEREFORE, in accordance with the provisions of Chapter 403, Laws of
1983, as amended by Chapter 102 of the Laws of 1984, it is
ORDERED, that this petition be granted and that the matter be
remanded for further consideration in accordance with this order and
opinion.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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