BE 210237 RO
STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: BE 210237 RO
DRO DOCKET NO.: K 3124889 R
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On May 18, 1987 the above named petitioner-owner filed a Petition
for Administrative Review against an order issued on April 15,
1987, by the District Rent Administrator, concerning housing
accommodations known as 1372 New York Avenue, Brooklyn, New York
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 initiated this proceeding by filing a Tenant's
Complaint of Rent Overcharges on March 28, 1984. Attached
thereto, is the lease for the subject apartment for the term
beginning June 1, 1983 and ending on May 31, 1984 at a monthly
rent of $409.26. Said lease, dated May 19, 1983, reflects the
owner's address as 3301 Foster Avenue, Brooklyn, New York.
A copy of the tenant's complaint form, filed with the
Conciliation and Appeals Board (CAB), was forwarded to the owner,
at 3301 Foster Avenue, Brooklyn, New York, on February 26, 1985
A Final Notice of Pending Default was mailed to the owner at the
same address on June 4, 1986. The owner, however, did not
respond below except that on June 6, 1986, the owner advised the
District Rent Administrator that the tenant moved from the
subject apartment on November 30, 1985.
On July 24, 1986, the tenant advised the District Rent
Administrator that she vacated the subject apartment in November,
1985 and that all mail was to be forwarded to a tenant in
another apartment in the subject premises.
The appealed order of the District Rent Administrator determined
that the tenant had been overcharged $446.47 including interest
and excess security, from June 1, 1983, through November 30,
1985, when the tenant vacated and also established the lawful
BE 210237 RO
stabilized rent of $393.52 per month, under the lease dated June
1, 1983 to May 31, 1984.
In this petition, the owner contends, in substance, that evidence
was not presented in this proceeding because an improper person
was notified by the Division of Housing and Community Renewal
(DHCR); and that the rent of $402.61 was not subject to DHCR
review as it was set by the Department of Housing Preservation
and Development (HPD) by an order issued on January 24, 1983,
pursuant to Article 15 of the Private Housing Finance Law.
The file does not contain any response by the tenant.
The Commissioner is of the opinion that this petition should be
A review of the registration history for the subject building
shows that the owner is listed as Vanderveer Associates, 3301
Foster Avenue, Brooklyn, New York, as of April 1, 1986.
The Commissioner notes that every document or notice in the
District Rent Office (DRO) file (excepting the District Rent
Administrator's order) refers to Vanderveer Associates, 3301
Foster Avenue, Brooklyn, New York, as the owner of the subject
The District Rent Administrator's order is addressed to Marvin
Katz at the same address leading to the ineluctable conclusion
that the order was received by the owner nonetheless, as it was
not returned by the United State Post Office as undeliverable as
addressed and the owner was able to timely file its appeal.
Therefore, the Commissioner finds that the owner (Vanderveer) was
properly served by the District Rent Administrator.
Despite this, the owner relied on its erroneous belief that the
tenant's vacating of the subject apartment obviated any need to
present evidence in answer to the complaint.
The record shows that the owner responded to the final notice of
pending default, dated June 19, 1986, by noting only the tenant's
removal and the file is lacking the owner's submission of leases
or a rental history as requested.
However, the owner's appeal contains a copy of an Order and
Report of Setting of Initial Regulated (Stabilized) Rent and
Services from the City of New York Department of Housing
Preservation and Development, dated January 24, 1983, pursuant to
Article 15 of the Private Housing Finance Law, (PHFL) which
determined that effective February 1, 1983 the new initial rent
for the apartment will be $552.58 per month. This order further
"As a condition of the agency providing financing for
the rehabilitation, the Landlord has agreed to charge
the present tenant in occupancy the initial rent of
$402.61 per month. Upon terminating the occupancy of
the present tenant, the initial rent ordered above,
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$552.58 per month, plus appropriate Rent Stabilization
increases, may be chargeable by the Landlord."
Section 2521.1(f) of the Rent Stabilization Code provides in
(f) Notwithstanding the provisions of any outstanding
lease or other rental agreement, the initial legal
registered rent for a housing accommodation in a
multiple dwelling for which a loan is made under the
PHFL shall be the initial rent established pursuant to
Although the District Rent Administrator properly determined the
tenant's complaint on the basis of the evidence of record before
the Administrator, based on the evidence submitted an appeal, it
appears that the owner did not charge the subject tenant a rent
in excess of the rent allowable under the order issued by HPD on
January 24, 1983. As such, no overcharge occurred.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
ORDERED, that this petition be, and the same hereby is, granted
and that the District Rent Administrator's order be, and the same
hereby is, revoked. The tenant shall pay any arrears arising as
a result of this order and opinion within 30 days of the issuance