BL410275RO
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.BL410275RO
: DRO DOCKET NO. L3110108R
PARK WEST MANAGEMENT CORP. TENANT: ALAN APPLEBAUM
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On December 11, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
November 18, 1987, by the Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York, concerning the housing accommodations
known as 392 Central Park West, New York , New York, Apartment No.
7U, wherein the Rent Administrator determined that the 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 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 commenced in March, 1984, by the filing of
a rent overcharge complaint by the tenant in which the tenant stated
that he first moved to the subject apartment pursuant to a lease
commencing April 1, 1981 at a rental of $432.09 per month. In
response to the tenant's complaint, the owner submitted a complete
rental history as required.
In order Number CDR 31,861, the Rent Administrator determined
that the tenant had been overcharged in the amount of $456.14 and
directed the owner to refund such overcharge to the tenant.
In this petition, the owner alleges in substance that no
BL410275RO
overcharge occurred in that the subject apartment was vacancy
decontrolled in 1973 and the first rent stabilized lease commencing
May 1, 1973 for a three year period was not subject to any form of
rent regulation. Said lease was for a three year period and listed
a rent of $210.00 for the first year; $215.00 for the second year;
and $220.00 for the third year. However the Rent Administrator in
his order incorrectly listed the rent for this entire lease period
as $215.00. If this mistake is corrected, it is apparent that no
rent overcharge occurred.
The Commissioner is of the opinion that this petition should be
granted.
An examination of the record in this case discloses that the
owner submitted a copy of the initial vacancy lease commencing May
1, 1973 in the proceeding before the Rent Administrator and that
said lease did list rents of $210.00, $215.00 and $220.00 for the
three year period as contended by the owner in its petition.
Further the record discloses that this lease was signed at a period
of vacancy decontrol prior to June 30, 1974 so that the subject
apartment was not subject to rent regulation when the prior tenant
signed the May 1, 1973 lease. Accordingly, the Rent Administrator
should have listed the rent as $220.00 effective May 1, 1975 - the
last year of the May 1, 1973 lease. When this is done, no
overcharge occurs for the subsequent lease periods since all rents
charged are based on appropriate guideline and major capital
improvement rent increases. Accordingly, the Rent Administrator's
order finding a rent overcharge 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. Should the
tenant vacate after the issuance of this order or have already
vacated, said arrears shall be payable immediately.
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 no rent overcharge occurred.
ISSUED
JOSEPH A. D'AGOSTA
Deputy Commissioner
BL410275RO
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