ADM. REVIEW DOCKET NO.:  ART 12215-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

          ------------------------------------X 
          IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
          APPEAL OF                              DOCKET NO.: ART 12215-K 
                                              :  DRO ORDER NO.: 
                                                 CDR 18,989          
          LILA KAPLAN,
                                PETITIONER    : 
          ------------------------------------X 

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
            IN PART

               On August 6, 1986, the above-named petitioner-tenant filed  a
          Petition for Administrative Review against an order issued on July 
          2, 1986, by the Rent Administrator, 10 Columbus Circle, New  York,
          New York, concerning housing accommodations known as Apartment 2D, 
          200  Corbin  Place,  Brooklyn,  New   York,   wherein   the   Rent
          Administrator determined that there had  been  an  overcharge  and
          ordered  a  refund  of  $574.07,  including  interest  and  excess
          security.

               The Commissioner notes that  this  proceeding  was  initiated
          prior to April 1, 1984.  Sections 2526.(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 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 commenced this proceeding on November 15, 1982  by
          filing an overcharge complaint with the New York City Conciliation 
          and Appeals Board (CAB), the predecessor of  the  DHCR,  based  in
          part on an alleged failure by the  owner  to  provide  a  complete
          rental history.

               In answer to the complaint, the owner (Corbin Realty Company)
          submitted a complete lease history.

               In Order Number CDR 18,989, the Rent Administrator determined 
          that there had been an overcharge and imposed interest thereon.  










          ADM. REVIEW DOCKET NO.:  ART 12215-K
               In  this  petition,  the  tenant  contends  that   the   Rent
          Administrator's Order is incorrect and should be modified  because
          the Administrator neglected the tenant's proof that the owner  had
          failed to return a copy of the executed July 1, 1982 lease  within
          thirty days as required by Section 26-511(c)(12)(e)  of  the  Rent
          Stabilization Law (RSL) but instead mailed said lease on  February
          10, 1983.  Accordingly, the tenant contends her  July  1982  lease
          should commence February 10, 1983 and run  to  February  9,  1986.
          Further, said lease was dated November 11, 1982, i.e.,  it  was  a
          retroactive lease.  In addition,  the  tenant  contends  that  the
          Administrator should have imposed treble damages because the owner 
          had failed to establish that the  overcharges  were  not  willful.
          Finally, the tenant alleges  that  the  Administrator  incorrectly
          computed the interest charges on the overcharge.

               Because the owner was originally sent a copy of the  tenant's
          petition  at  an  incorrect  address,  the  owner  was   re-served
          correctly on July 28, 1989.  Nevertheless, the owner has failed to 
          respond to the tenant's petition.  

               The Commissioner is of the opinion that this petition  should
          be granted in part.

               The former Code, which was in effect at the time of the  1982
          renewal lease, did not provide for penalties for  failure  of  the
          owner to send a fully executed renewal lease within thirty days of 
          receipt of a signed renewal lease from the  tenant.   Indeed,  the
          Section of the RSL cited by the tenant did not take  effect  until
          1984.  However, it has long been the policy of the  Division  that
          retroactive leases are not allowed.  Accordingly,  the  July  1982
          three year lease, executed November 11, 1982, is hereby deemed  to
          be  a  three  year  lease  commencing  December  1,  1982.    Rent
          Guidelines Board Order Number 14, which  was  in  effect  on  that
          date, provides for a smaller rent increase than that  provided  by
          Order 13 for a three year renewal lease (10% as opposed  to  16%).
          Accordingly, the attached rent calculation chart,  hereby  made  a
          part of this Order, applies the rate of Order 14,  and  shows  the
          correct overcharges.  

               The tenant is correct  that  the  Administrator  should  have
          imposed  treble  damages,  which  are  mandatory  on   overcharges
          collected on or after April 1, 1984 unless the owner proves  by  a
          preponderance of  the  evidence  that  the  overcharges  were  not
          willful.  Accordingly, the attached chart imposes  treble  damages
          pursuant to the Omnibus Housing Act of 1983 (the 1983 Act), for  a
          total overcharge of $6529.01, including treble damages and  excess
          security.  

               Because the 1983 Act provided for interest only  in  lieu  of
          treble damages, the tenant's contentions regarding the  imposition
          of interest by the Administrator are now moot since treble damages 
          are being imposed.




               This order may, upon the expiration of the  period  in  which
          the owner may institute a proceeding pursuant to Artic e  seventy-
          eight of the civil practice law and rules, be filed  and  enforced






          ADM. REVIEW DOCKET NO.:  ART 12215-K
          by the tenant in the same manner as a judgment or not in excess of 
          twenty percent thereof per month may be offset  against  any  rent
          thereafter due the owner.

               THEREFORE, in accordance with the Rent Stabilization Law  and
          Code, it is 

               ORDERED, that this 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  
    

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