BE610484RO
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. BE610484RO
: DISTRICT RENT OFFICE
DOCKET NO. TC043518G
CDR 30226
Hafiz M. Ellahi,
OWNER: New Dawn University, L.P.
FORMER OWNER: 2240 University
Avenue Corp.
TENANT: Diane (Greene) Foster
PETITIONER :
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On May 29, 1987 the above-named petitioner filed a Petition for
Administrative Review against an order issued on May 1, 1987 by the
District Rent Administrator, 10 Columbus Circle, New York, New York
concerning housing accommodations known as 2240 University Avenue,
Bronx, New York, Apartment No. 4E wherein the District Rent
Administrator determined that the (former) owner had overcharged the
tenant.
The Commissioner notes that this proceeding was filed prior to April 1,
1984. Sections 2526.1 (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 issue herein is whether the Rent Administrator's order was
warranted.
The applicable sections of the Law and Section 26-516 of the Rent
Stabilization Law and Section 2526.1(a) of the current 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 originally commenced by the filing in May, 1980 of
a rent overcharge complaint by the tenant, in which she stated that she
BE610484RO
had commenced occupancy on April 12, 1978 at a rent of $250.00 per
month. The tenant named the owner as 2240 University Avenue Corp.,
stated that she paid her rent to Newman Mgmt. Corp., and enclosed an
April 12, 1978 lease with Omniventures, Inc. 2240 University Avenue
Corp. and Newman Mgmt. Corp. were sent copies of the complaint. In
1986, 2240 University Avenue Corp. and other prior or subsequent owners
were sent Final Notices of Pending Default. All of the notices were
returned by the Postal Service. (A March 24, 1981 " Report of Change In
Identity of Landlord" sent to the Office of Rent Control indicated that
2240 University Avenue Corp. was in receivership as of that date.)
In Order Number CDR30226, based on the failure to submit a rental
history, the rent for the subject apartment was established at $187.20
effective April 15, 1978 and an overcharge of $1570.00 was determined
covering the period from April 15, 1978 to April 14, 1980. The owner
was listed as 2240 University Avenue Corp.
In this petition, Hafiz M. Ellahi contends in substance that he never
received a copy of the order, although the tenant informed him of the
order; that he was not the owner in 1978, but bought the building in
January, 1985; and that the complainant was the first stabilized tenant,
which entitled the charging of a fair market rent.
In answer, the tenant asserts in substance that Mr. Hafiz Ellahi sold
the building in 1987; that the new owner refunded the overcharge from
1978 to 1984, but refused to do so for the overcharge from 1985 to 1988;
and that "[t]he document I received from DHCR, Doc. #TC043518C was
sealed 1/14/88. Why is this petition being accepted." [It is not clear
what the tenant means by this last statement. While Mr. Hafiz Ellahi
sent a copy of his petition in response to an April 14, 1988 DHCR
request for a copy of the order being appealed, the file contains the
original of his petition, which was received on May 29, 1987.]
All mailings to Mr. Hafiz Ellahi since 1990 have been returned by the
Postal Service.
In a recent enclosure of a submission made in 1990 in another overcharge
proceeding, the current owner New Dawn University, L.P. contends in
substance that it purchased the subject premises in July, 1987; that it
subsequently settled any claim of the complainant from April, 1984 to
date; that it executed a renewal lease effective January 1, 1987 at a 9%
increase over the $187.20 rent set by the Administrator for the tenant's
1978-80 lease; and that there has been no overcharge since it bought the
building. With its submission the current owner has submitted a copy of
a January 23, 1988 settlement wherein it dropped claims for back rent
and agreed to pay the tenant installments of $1,570.00 and $842.80 in
full settlement of any rent claims prior to March 31, 1988. The tenant
also agreed that the legal rent was $204.05, and that "if the check for
$1,570 coming from Hafiz's lawyer is made payable to tenant, that tenant
will endorse it over to landlord."
The Commissioner is of the opinion that this petition should be denied.
The only issue in this appeal proceeding is whether the Administrator's
order was correct in its setting of a rent and finding of an overcharge
for the 1978-80 lease term. New Dawn University L.P.'s submission does
not address that issue, Hafiz Ellahi did not submit a rental history or
BE610484RO
evidence of date of decontrol, and DHCR records do not contain anything
to show that the complainant was the first stabilized tenant, so there
is no basis to change the Administrator's order. To the extent that
Hafiz Ellahi might be contending that he should not be liable for
overcharges occurring prior to the time he bought the building, his
contention is irrelevant, since the order does not name him as being
liable for the $1,570.00.
Further the Commissioner notes that for overcharge complaint filed prior
to April 1, 1984, absent collusion or any relationship between owners,
overcharges collected prior to April 1, 1984 are solely the
responsibility of the owner collecting them. Pursuant to Section
2526.1(f) of the current Rent Stabilization Code, a current owner is
responsible for all overcharges collected on and after April 1, 1984.
Since Hafiz Ellahi bought the building in 1985, and there is no evidence
of collusion, he is not liable for the overcharge determined by the Rent
Administrator which dealt with the period from 1978 - 1980.
THEREFORE, in accordance with the Rent Stabilization Law and Code, it is
ORDERED, that this petition be, and the same hereby is, denied and that
the District Rent Administrator's order be, and the same hereby is,
affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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