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. BA 210071 RO
: DRO DOCKET NO. K-3105610-R
LAFAYETTE KINGS CORP. TENANT: MAXINE ROACH
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On January 7, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
December 3, 1986, by the Rent Administrator, 10 Columbus Circle,
New York, New York, concerning the housing accommodations known as
101 Lafayette Avenue, Brooklyn, New York, Apartment No. 14F,
wherein the Rent Administrator determined that the owner had
overcharged the tenant.
The Administrative Appeal is being determined pursuant to the
provisions of Section 2526.1 of the Rent Stabilization Code.
The issue herein is whether the Rent Administrator's order
was warranted.
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 originally commenced by the filing in
March, 1984, of a rent overcharge complaint by the tenant in which
the tenant stated that she first moved to the subject apartment on
October 1, 1982 at a rental of $415.00 per month.
The owner was served with a copy of the complaint and was
requested to submit rent records to prove the lawfulness of the
rent being charged. In response the owner stated that it believes
the subject apartment was rent controlled before the current
tenant moved in, but that in any event, the initial rent effective
October 1, 1982, was established pursuant to Section 2429 of the
Public Authorities Law since the subject premises was renovated
under a New York State SONYMA insured loan. In support of such
contention, the owner submitted a copy of the tenant's vacancy
lease wherein it was noted that the initial rent for the subject
apartment was established pursuant to Section 2429 of the Public
Authorities Law.
In Order Number CDR 27875, the Rent Administrator determined
BA 210071 RO
that the owner had failed to submit a complete rental history and
based thereon, found that the tenant had been overcharged in the
amount of $3495.74 through September 30, 1986 including excess
security and interest on that part of the overcharge occurring on
and after April 1, 1984, and directed the owner to refund such
overcharge to the tenant.
In this petition, the owner alleges in substance that there
was no rent overcharge in that the initial rent of the subject
apartment upon occupancy by the tenant herein was correctly
established pursuant to Section 2429 of the Public Authorities
Law. Subsequently, the owner submitted a copy of a mortgage for
the subject premises which indicated that in 1981 the State of New
York Mortgage Agency (SONYMA) insured a loan to rehabilitate the
subject premises.
The Commissioner is of the opinion that this petition should
be granted.
Section 2429 of the Public Authorities Law provides in
pertinent part that all dwelling units in a multiple dwelling the
rehabilitation or construction of which commenced after July 1,
1978 and which is financed by a loan insured by the State of New
York Mortgage Agency, shall be subject to the Rent Stabilization
Law, beginning immediately after initial rents as established
under applicable provisions of the Rent Stabilization Law, the
Emergency Tenant Protection Act of 1974 or the Private Housing
Finance Law for such dwelling units become effective on the basis
of such rehabilitation or construction, provided that any occupant
in possession of a dwelling unit that first becomes subject to the
Rent Stabilization Law or the Emergency Tenant Protection Act of
1974 pursuant to this section shall be offered a two year lease
notwithstanding any contrary provisions of, or regulations adopted
pursuant to such law or act, at the initial rent established for
such dwelling unit.
In the instant case, the evidence of record discloses that
the subject premises was rehabilitated after July 1, 1978 with a
loan insured by the State of New York Mortgage Agency pursuant to
Section 2429. Further the tenant herein initially took possession
pursuant to a two year lease as required. Accordingly the owner
should not have been found in default due to a failure to submit a
complete rental history. Rather the initial rent was correctly
established as $415.00 effective October 1, 1982 to September 30,
1984 and then correctly increased by 9% to $452.35 upon a two year
lease renewal effective October 1, 1984 to September 30, 1986
pursuant to Guideline 16. Therefore there was no rent overcharge
and the Rent Administrator's order to that effect must be revoked.
If the owner has already complied with the Rent
Administrator's order and there are arrears due to the owner as a
result of the instant determination, the tenant is permitted to
pay off the arrears in twenty four equal monthly installments.
BA 210071 RO
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that this petition for administrative review be, and
the same hereby is, granted, and, that the order of the Rent
Administrator be, and the same hereby is, revoked and it is found
that there was no rent overcharge.
ISSUED
ELLIOT SANDER
Deputy Commissioner
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ADMINISTRATIVE REVIEW BUREAU
COVERING MEMORANDUM
ARB Docket No.: BA 210071 RO
DRO Docket No/Order No.: K-3105610-R
Tenant(s): Maxine Roach
Owner: Lafayette Kings Corp.
Code Section: 2526.1 of RSC
Premises: 101 Lafayette Avenue, Brooklyn, New York, Apt.14F
Order and Opinion Granting Petition
Petition granted on basis that pursuant to Section 2429 of
Public Authorities Law, owner charged correct initial rent for
subject apartment and no rent overcharge occurred.
APPROVED:
Processing Attorney:
Supervising Attorney:
Bureau Chief:
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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