BJ110304RO
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. BJ110304RO
: DRO DOCKET NO. 44968
KINGSWOOD MANAGEMENT CO. TENANT: P. DILILLO
PETITIONER :
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On October 26, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
September 21, 1987, by the Rent Administrator, 10 Columbus Circle,
New York, New York, concerning the housing accommodations known as
21-48 35th Street, New York, New York, Apartment No. 3C, 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 of a
Tenant Objection to Rent Registration in which the tenant stated in
substance that he first moved to the subject apartment on July 10,
1984, at a rental of $383.75 per month.
The owner was served with a copy of the tenant's objection and
directed to submit a rental history from April 1, 1980, or the date
the subject apartment first became subject to rent stabilization if
later. In response, the owner stated in substance that it became
the new agent for the subject premises in April 1987 and had no
rental history prior to July 1, 1984.
In Order Number 44968, the Rent Administrator determined that
due to the owner's failure to submit a complete rental history, the
tenant had been overcharged in the amount of $3895.05 including
interest and directed the owner to refund such overcharge to the
tenant as well as to reduce the rent.
In this petition, the owner alleges in substance that upon
information and belief, at the time the tenant filed his objection,
the subject building was not "in the hands of the petitioner" and
BJ110304RO
the failure to serve the prior owner who had all relevant rent
records severely prejudiced the petitioner and that it was the duty
of the DHCR to serve the prior owner with notice of the tenant's
objection.
The Commissioner is of the opinion that this petition should be
denied.
Section 2526.1(f)(2) of the Rent Stabilization Code provides in
pertinent part that for overcharge complaints filed or 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.
In the instant case the overcharge complaint was filed after
April 1, 1984. Accordingly, the owner herein is responsible for the
refund of the entire overcharge. The failure to serve the prior
owner with a copy of the tenant's overcharge complaint does not
excuse the owner herein from its obligation to secure a complete and
accurate rental history from the prior owner and produce such rental
history to the DHCR upon demand. Accordingly, the Rent
Administrator's order was warranted. This order is issued without
prejudice to any action the owner herein may have against the prior
owner for the refund of any overcharge paid by the tenant to said
prior owner.
The evidence of record indicates that the tenant has now moved
from the subject apartment and the subject apartment is now a
cooperative apartment.
The Commissioner has determined in this Order and Opinion that
the owner collected overcharges of $3895.05. This Order may, upon
expiration of the period for seeking review of this Order and
Opinion pursuant to Article Seventy-eight of the Civil Practice Law
and Rules, be filed and enforced as a judgment. Where the tenant
files this Order as a judgment, the County Clerk may add to the
overcharge, interest at the rate payable on a judgment pursuant to
section 5004 of the Civil Practice Law and Rules from the issuance
date of the Rent Administrator's Order to the issuance date of the
Commissioner's Order.
BJ110304RO
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, denied, and, that the order of the Rent
Administrator be, and the same hereby is, affirmed.
ISSUED
JOSEPH A. D'AGOSTA
Deputy Commissioner
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