ART 08825 B, ART 08826 B, ART 08861 B and ARL 09062 B
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
APPEALS OF DOCKET NO.: ART 08825 B;
ART 08826 B, ART 08861 B
ARL 09062 B
3333 Operating Corp. DRO DOCKET NO.: B 003363-R;
and B 003402-R, B 003405-R,
Various tenants residing at B 003396-R
3333 Henry Hudson Parkway
Bronx, NY,
PETITIONERS
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ORDER AND OPINION REMANDING PROCEEDINGS TO THE RENT ADMINISTRATOR
On March 19, 1986 and March 28, 1986, the above petitioners-tenants and
garage operator filed Petitions for Administrative Review against the
above mentioned orders issued on February 21, 1986, by the Rent
Administrator located at Gertz Plaza, 92-31 Union Hall Street, Jamaica,
New York, concerning garage rentals at 3333 Henry Hudson Parkway, Bronx,
New York, wherein, based upon a corollary proceeding pending between the
Attorney General of the State of New York, and Hampton Management
Company involving an assurance of discontinuance which included the
garage rentals at the subject premises, the tenant complaints were
dismissed without prejudice to the tenants' right to file future
complaints of owner's failure to renew leases or other ancillary
matters.
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 appeals.
This proceeding was initially commenced after April 1, 1984 by various
tenants of the subject building filing complaints of rent overcharge for
garage spaces in the subject building. Prior to the joinder of issue
and based upon what appeared to be a negotiated settlement between the
Attorney General of the State of New York and Hampton Management, the
Rent Administrator dismissed the tenant complaints on the basis that
such complaints of garage rent overcharge would be resolved in that
settlement.
In the tenants' petitions, the tenants contend, in substance that the
proceeding before the Attorney General and Hampton Management did not
involve garage rent overcharges and the Rent Administrator's order
dismissing the complaints on that basis was therefore improper.
The owner in its answer to the Petitions asserts in substance that the
DHCR has no jurisdiction, that the garage operator should have been made
ART 08825 B, ART 08826 B, ART 08861 B and ARL 09062 B
a party to the proceeding and that the complaint is time barred since
the tenants did not file objections to the 1984 rent registration.
In its petition, the garage operator alleges in substance that it is an
independent contractor and not an owner so that the DHCR does not have
personal jurisdiction over it.
The Commissioner is of the opinion that these proceedings should be
remanded to the Administrator for further processing.
The record establishes that the Administrator's determination to dismiss
was based solely upon the Attorney General's apparently assuming
jurisdiction of tenant complaints of garage rent overcharge. It appears
however that the Attorney General in fact did not determine these
overcharge complaints. Moreover the DHCR is not estopped from
exercising its expertise and determining the lawful regulated rent for
the garages from the base date by virtue of an Assurance of
Discontinuance between the owner and the Attorney General.
With regard to the owner's contention that the complaints are time
barred because the tenants did not file an objection to the 1984 initial
registration, it is noted that the garage and the rent paid therefor
were not included on the 1984 initial registration statements so that
the 90 days within which to object to a 1984 registered rent did not
begin to run.
With regard to the garage operator's petition, the DHCR does not claim
jurisdiction over the garage operator. The Administrator's orders
appealed herein properly did not mane the garage operator in the
caption. However regarding any overcharges determined on remand, it is
noted that the current and former owners may seek reimbursement from the
garage operator in a court of competent jurisdiction.
Accordingly, the Commissioner determines that this matter should be,
remanded to the Administrator to determine the tenants' complaints of
garage rent overcharges on the merits.
THEREFORE, in accordance with the Rent Stabilization Law and Code, it is
ORDERED, that these petitions be, and the same hereby are, granted to
the extent of remanding these proceedings to the Rent Administrator for
further processing in accordance with this order and opinion.
ISSUED:
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner
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