Docket No.:  BA 110309 RO
                                  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.:   BA   110309-RO
                                                         
             TIME EQUITIES,                      D.R.O. DOCKET NO.: 27043
                                             
                                                 Tenants: 
                                                  Lawrence and Beth Gershon     
                                PETITIONER     
          ----------------------------------X                           
            
            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                       IN PART

          On January 13, 1987, the above named petitioner (managing agent of 
          the owner, 143-50  Hoover  Owners  Corp.)  filed  a  Petition  for
          Administrative Review against an  order  issued  on  December  12,
          1986, by the District Rent Administrator, Two World Trade  Center,
          New York, New York, concerning  housing  accommodations  known  as
          Apartment 412, 143-50 Hoover Avenue, Jamaica,  New  York,  wherein
          the District Rent Administrator  determined  that  the  owner  had
          overcharged the tenants.

          The  issue  in  this  appeal  is   whether   the   District   Rent
          Administrator's order was warranted.

          The applicable section of the law is Section 2526.1  of  the  Rent
          Stabilization Code.

          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 27, 1984  by  the  tenants
          filing of an objection to the rent/services registration claiming, 
          inter alia, that the rent paid on April 1, 1984 was an overcharge.

          In its answer to the tenants' objection, the petitioner  submitted
          a complete rental history for the subject apartment and  contended
          in substance that 143 Hoover Equities Group purchased the premises 
          from the prior owner in June of  1985,  and  a  slight  overcharge
          existed due to a miscalculation by the prior owner.

          In Docket Number 27043 issued December 12, 1986, the District Rent 
          Administrator determined that  the  tenant  had  been  overcharged
          since March 1, 1984, and accordingly directed  the  petitioner  to
          refund to the tenant $170.84 which included excess security and 






          Docket No.:  BA 110309 RO

          interest on that portion of the overcharge occurring on or after 
          April 1, 1984.

          In this petition, the managing agent for  the  owner  contends  in
          substance  that  the  District  Rent  Administrator's   order   is
          incorrect and  should  be  modified  because  the  owner  did  not
          purchase the subject premises until June 14, 1985 and should  only
          be responsible for overcharges from that date;  and  at  the  time
          143-50 Hoover Owners Corp. purchased  the  subject  premises,  the
          Division's policy was  to  limit  an  owner's  responsibility  for
          overcharges to the amount which it  actually  collected  from  the
          tenant.

          The tenants did not submit a response to the petition.

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

          Section 2526.1(f) of the current Rent Stabilization Code  provides
          pertinent part that:

               1)  for overcharges collected prior to April 1, 1984,  an
               owner will be  held  responsible  only  for  his  or  her
               portion of the overcharges, in the absence  of  collusion
               or any relationship between  such  owner  and  any  prior
               owner; and

               2)  for overcharges collected on or after April 1,  1984,
               a current owner shall be responsible for  all  overcharge
               penalties, including  penalties  based  upon  overcharges
               collected by any prior owner.


          An examination of the rental history  for  the  subject  apartment
          reveals that the subject premises  was  conveyed  from  the  prior
          owner to 143-50 Hoover Owners Corp. on June  14,  1985.   Although
          the petitioner first acquired the subject  premises  on  June  14,
          1985, it is jointly and severally responsible with the prior owner 
          for the overcharges ($72.41) occurring from April 1, 1984, to June 
          13,  1985,  and  thereafter  individually  responsible   for   the
          overcharges ($94.15) occurring from June 14, 1985, to December 31, 
          1986.  This amount includes excess security  and  interest.   This
          finding is without prejudice to any action that the petitioner may 
          have against the prior owner for  overcharges  reimbursed  by  the
          petitioner which the prior owner had collected.  

          The prior owner is responsible  for  the  overcharges  ($4.28)  it
          collected through March 31, 1984, and jointly and severally liable 
          with the petitioner for the overcharges  ($72.41)  occurring  from
          April 1, 1984, to June 13, 1985.

          With regard to the petitioner's contention that  on  the  date  it
          acquired the subject premises, the Division's policy was to  limit







          Docket No.:  BA 110309 RO

          an owner's responsibility for overcharges to the amount  which  it
          actually collected from the tenant, the Commissioner notes that in 
          the case of J.R.D. Mgt. v. Eimicke, 148 A.D.2d 610 (App.  Div.  2d
          Dept. 1989), the court held that the law in effect at the time  of
          the determination of the administrative complaint must be applied. 
          Thus, Section 2526.1 of the Rent Stabilization Code applies to the 
          instant proceeding.

          The Commissioner notes that the prior owner was not named  by  the
          tenant in this proceeding and has  not  been  properly  served  to
          date.  This order is therefore issued  without  prejudice  to  the
          tenants' right, if any, to proceed against the prior owner.

          Upon the expiration of the period in which the owner may institute 
          a proceeding pursuant to Article 78 of the Civil  Practice  Law  &
          Rules, the tenant may offset against any rent thereafter  due  the
          owner not in excess of twenty percent per month of  the  remaining
          overcharge ($166.56) which occurred from  April  1,  1984  through
          December 31, 1986.

          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 that the District Rent Administrator's Order be, and the 
          same hereby is,  modified  to  show  that:   the  prior  owner  is
          responsible for refunding a total overcharge of $4.28 - the amount 
          of the overcharge occurring from March 1, 1984, through March  31,
          1984; the prior owner and the petitioner are jointly and severally 
          liable for refunding $72.41 - the amount of  overcharge  occurring
          from April 1, 1984, to  June  13,  1985;  and  the  petitioner  is
          responsible for refunding a  total  overcharge  of  $94.15  -  the
          amount  of  overcharge  occurring  from  June  14,  1985,  through
          December 31, 1986.

          ISSUED:




                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner


    

TenantNet Home | TenantNet Forum | New York Tenant Information
DHCR Information | DHCR Decisions | Housing Court Decisions | New York Rent Laws
Disclaimer | Privacy Policy | Contact Us

Subscribe to our Mailing List!
Your Email      Full Name