DHCR Decisions
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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 410219 RO
PERRY AND DONNA GOLKIN-TENANT,
DRO DOCKET NO.: TC 69848 G
ORDER NO.: CDR 28,028, AS AMENDED
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE APPEAL
On January 13, 1987 the above-named petitioner filed a Petition
for Administrative Review against an order issued on December 9,
1986 by the Rent Administrator, 10 Columbus Circle, New York, New
York concerning the housing accommodation known as 445 East 86th
Street, Apartment 12-I, New York, New York wherein the
Administrator directed the current owner to roll back the rent
and to refund rent paid in excess of the lawful stabilization
rent.
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 administrative appeal.
The tenant commenced this proceeding on February 17, 1983 by
filing a complaint of rent overcharge with the former New York
City Conciliation and Appeals Board (CAB), the predecessor to the
Division of Housing and Community Renewal (DHCR). The tenant
stated that he had commenced occupancy of the subject apartment
on May 1, 1978 pursuant to a three year lease at a monthly rent
of $540.00.
On February 28, 1983, a copy of the complaint was served on the
current owner, along with a demand for a complete rental history
of the subject apartment.
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On March 22, 1983, the current owner responded in essence that
since it did not take title to the subject building until
October 15, 1982 at which time the building converted to
cooperative ownership and the complainants purchased their
apartment, it was not responsible for any overcharges collected
to that time. The owner advised the CAB of the names
of the prior owners-the owner named on the original lease, 445
East 86th Street Company and the sponsor of the Co-Op plan, 445
East 86th Street Associates. The owner did not submit a rental
history.
On December 9, 1986, the Administrator issued the order here
under review, finding that an overcharge in the amount of
$4,053.44 had been collected through October 15, 1982 at which
time the subject premises converted to Co-Op status. Pursuant to
the order the current owner's liability was limited to such rent
as actually collected by the former (sic) owner and the tenant
was advised to pursue the overcharge claim against the prior
owners in a court of competent jurisdiction.
In its appeal, the owner seeks to modify the Administrator's
order to clarify and to make explicit that the current owner, the
cooperative apartment corporation is not liable for the
overcharges.
In answer, the tenant asserts that the order clearly states that
the full refund is due from the current owner.
In reply, the owner contends that the CAB's policy which was
continued by the DHCR was to hold each owner responsible for
its respective part in the overcharge and to direct the tenant
to court to recover overcharges from former owners. Any
ambiguity in the order, the owner suggests, may be the result of
clerical error.
The Commissioner is of the opinion that this petition should be
granted.
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The CAB's policy, in the absence of collusion, held a current
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owner responsible only for those overcharges it actually
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collected. Under the new Code this policy is followed when both
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of the following conditions are met: (1) the complaint was
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filed prior to April 1, 1984 and (2) the overcharges were
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collected before that date. Accordingly, the Commissioner hereby
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modifies the Administrator's order to read as follows on page 2,
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paragraph 4.
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The Rent Stabilization Law provides for complaints
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filed before April 1, 1984 that in the absence of
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evidence of any collusion between the present owner and
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the former owner, the obligation of the present owners
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to refund overcharges collected prior to April 1, 1984
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is limited to such overcharges actually collected by
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the present owner.
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Since the Rent Administrator determined that no overcharge had
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been collected since October 15, 1982, the current owner, 445/86
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Owners Corporation, is not liable for any overcharges.
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This order is issued without prejudice to the tenant's right to
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pursue the claim of overcharge against the prior owners in a
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court of competent jurisdiction.
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THEREFORE, in accordance with the Rent Stabilization Law and
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Code, it is
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ORDERED, that this petition be, and the same hereby is, granted
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and Rent Administrator's order be, and the same hereby is,
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modified in accordance with this Order and Opinion.
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ISSUED:
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ELLIOT SANDER
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Deputy Commissioner
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