BA 410205 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 410205 RO

             MILFORD MANAGEMENT CORPORATION,      DISTRICT RENT ADMINISTRATOR'S
                                                  DOCKET NO. L 3116853 R
                                                  TENANT:  MAX SAYAH
                                  PETITIONER
          ----------------------------------X                                   


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                       IN PART


          On January 8, 1987 the above-named owner  filed  a  petition  for
          administrative review of an order issued on December 4,  1986  by
          a Rent Administrator concerning the housing  accommodation  known
          as Apartment 30E, 155  West  68th  Street,  New  York,  New  York
          wherein the Administrator determined that a rent  overcharge  had
          occurred.

          The Commissioner has reviewed all of the evidence in  the  record
          and has carefully considered that portion of the record  relevant
          to the issues raised by the petition for review.

          This proceeding was commenced on March 31, 1984 upon  the  filing
          of a complaint of rent overcharge  by  the  tenant.   The  tenant
          stated that he was never presented  with  a  rental  history  and
          requested a general rent review.

          On March 5, 1985, the owner  submitted  its  answer.   The  owner
          stated that  perhaps  overcharges  had  occurred  but  they  were
          clerical errors and not willful.  The owner further  stated  that
          where an overcharge had been discovered the rents  were  adjusted
          and tenants were credited the amount of the overcharge.  With its 
          answer the owner submitted a rental history with complete  copies
          of  pre-adjustment  lease,  copies   of   invoices   and   tenant
          acknowledgments  of  equipment  improvements   in   the   subject
          apartment,  and  copies  of  recent  rental  tapes  showing   the
          adjustments.


          In reply the tenant acknowledged that  the  owner  had  made  the
          adjustments and credits alleged, but said that he had no  way  of
          confirming the owner's figures.

          In the  order  issued  on  December  4,  1986  the  Administrator
          determined that the lawful stabilization rent was $1,065.13 as of 
          April 1, 1984 through March 31, 1986 and directed  the  owner  to
          refund $30,062.53 in overcharges through March 31, 1986 including 






          BA 410205 RO
          interest from April 1, 1984 and excess security.

          In its petition for administrative review, the owner repeats  the
          arguments  made  below.   Namely,  it   is   alleged   that   the
          Administrator  failed  to  take  into  consideration   the   rent
          adjustments and credits  that  the  owner  had  made  during  the
          pendency of the proceeding below.  In fact, it produces  evidence
          to show that by the owner's calculations the legal  stabilization
          rent  and  the  rent  being  charged  is  less  than  the  amount
          determined by the Administrator.

          In his answer  to  the  petition,  the  tenant  acknowledges  the
          credits and adjustments made by the owner, but  points  out  that
          these credits did not include interest.

          After careful consideration, the Commissioner is of  the  opinion
          that this petition should be granted in part.

          A reexamination of the record indicates that the owner has  fully
          corrected its prior overcharges.  As noted, the Administrator, in 
          fact, allowed the owner a  ten-percent  vacancy  allowance  under
          Guideline 11.  The owner, in its calculations, took only a  five-
          percent allowance.  Accordingly, the Commissioner finds that  the
          lawful stabilization rent from April 1, 1984  through  March  31,
          1986 was $1,027.60, which was the  amount  actually  charged  and
          collected by the owner after the owner made rent adjustments.  In 
          addition, the Commissioner finds that the entire principal amount 
          of the overcharges had been credited to the tenant.

          However, the owner did  not  credit  the  tenant  with  interest.
          Section 2526.1 of the Rent Stabilization Code states that if  the
          Division of Housing and Community Renewal (DHCR) determines  that
          an owner has collected overcharges  and  no  treble  damages  are
          assessed, interest on post-April  1,  1984  overcharges  must  be
          included.  The  post-April  1,  1984  overcharges  continued  for
          eleven months at a rate of $792.77 per month.   The  Commissioner
          finds that the owner should have credited the tenant with $334.49 
          in interest in March 1985  when  the  owner  made  its  otherwise
          accurate rent adjustments.

          Accordingly, the owner is directed to refund to  the  tenant  the
          amount of $334.49.


          THEREFORE, pursuant to the Rent Stabilization Law and Code, it is

          ORDERED, that this petition be, and the same hereby  is,  granted
          in part, and that the Administrator's  order  be,  and  the  same
          hereby is, modified in accordance with this  order  and  opinion;
          and it is

          FURTHER ORDERED, that if the owner has  not  complied  with  this
          Order and Opinion, upon the expiration of the period in which  to
          institute a proceeding  pursuant  to  Article  78  of  the  Civil
          Practice Law and Rules for judicial review  of  this  order,  the
          tenant may offset against any rent thereafter due the  owner  not
          in excess of twenty percent of $334.49 per month until the amount 
          of $334.49 is fully repaid.







          BA 410205 RO



          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