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. BE 210313 RO
                                              :  DRO DOCKET NO. K-3105196-R
               WILLIAM ERBIS                     TENANT: LUCY PETERSON

                                PETITIONER    : 
          ------------------------------------X 

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


               On May 15, 1987, the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review  against  an  order  issued  on
          April 23, 1987, by the Rent  Administrator,  10  Columbus  Circle,
          New York, New York, concerning the housing accommodations known as 
          598 Union Avenue, Brooklyn. New York, Apt. 4R,  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 (a) 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  in
          March, 1984,  of  a  rent  overcharge  complaint  by  the  tenant.
          Subsequently, the tenant  stated  that  she  had  moved  from  the
          subject apartment.

               The owner was served with a copy of  the  complaint  and  was
          requested to submit rent records from the base date to  prove  the
          lawfulness of the rent being charged.  In answer to the complaint, 
          the owner submitted a rental history from January 1, 1980.

               In Order Number CDR 30,103, 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
          $2853.36 and directed the owner to refund such overcharge  to  the
          tenant as well as to reduce the rent.

               In this petition, the owner contends in substance that he did 
          not default as he submitted all the rent records he  had  back  to
          his purchase of the subject premises.

          BE 210313 RO









               The Commissioner is of the opinion that this petition  should
          be granted.

               Section 42A of the former Rent  Stabilization  Code  requires
          that  an  owner  retain  complete  records  for  each   stabilized
          apartment in effect from June 30, 1974 (or the date the  apartment
          became subject to rent stabilization, if  later)  and  to  produce
          such records to the DHCR upon demand.

               Section 26-516 of the Rent Stabilization Law, effective April 
          1, 1984, limited an owner's obligation to provide rent records  by
          providing that an owner may not be  required  to  maintain  or  to
          produce rent records for more than four (4)  years  prior  to  the
          most recent registration, and concomitantly,  established  a  four
          year limitation on the calculation of rent overcharges.

               It has been the  DHCR's  policy  that  overcharge  complaints
          filed prior to April 1, 1984, are to be processed pursuant to  the
          Law or Code in effect on March 31, 1984. (see Section  2526.1  (a)
          (4) of  the  current  Rent  Stabilization  Code.)   The  DHCR  has
          therefore applied Section 42A of the  former  Code  to  overcharge
          complaints filed prior to April 1, 1984, requiring  complete  rent
          records in these cases.  In following this policy,  the  DHCR  has
          sought to be consistent with the legislative intent of the Omnibus 
          Housing Act (Chapter 403, Laws of 1983), as implemented by the New 
          York City Conciliation and Appeals  Board  (CAB)  the  predecessor
          agency to the DHCR, to determine rent overcharge complaints  filed
          with the CAB prior to April 1, 1984, by applying the law in effect 
          at the time such complaints were filed so as not to  deprive  such
          tenants of  their  rights  to  have  the  lawful  stabilized  rent
          determined from the June 30, 1974 base  date  and  so  as  not  to
          deprive tenants whose overcharge claims  accrued  more  than  four
          years prior to  April  1,  1984  of  the  right  to  recover  such
          overcharges.  In such cases, if the owner failed  to  produce  the
          required  rent  records,  the  lawful  stabilized  rent  would  be
          determined pursuant to the default procedure approved by the Court 
          of Appeals in 61 Jane Street Associates v. CAB, 65 N.Y.2d 898, 493 
          N.Y. S. 2d 455 (1985).

               However, it has recently been held  in  the  case  of  J.R.D.
          Mgmt. v. Eimicke, 148 A.D.2d 610. 539 N.Y.S. 2d 667 (App. Div.  2d
          Dept., 1989). motion for leave to reargue or for leave  to  appeal
          to the Court of Appeals denied ( App.  Div.  2d  Dept.,  N.Y.L.J.,
          June 28, 1989. p.25, col.1), motion for leave  to  appeal  to  the
          Court of Appeals denied (Court  of  Appeals,  N.Y.L.J.,  Nov.  24,
          1989, p.24, col.4)., motion for leave to reargue denied (Court  of
          Appeals, N.Y.L.J., Feb. 15, 1990, p.25, col.1), that  the  Law  in
          effect at the time of  the  determination  of  the  administrative
          complaint rather than the Law in effect at the time of the filing
          of the complaint must be applied  and  that  the  DHCR  could  not
          require an owner to produce more than four years of rent records.

               Since the issuance of the  decision  in  JRD,  the  Appellate
          Division, First Department, in the case of Lavanant v.  DHCR,  148
          BE 210313 RO









          A.D.2d 185, 544 N.Y.S.2d 331  (App.  Div.  1st  Dept.  1989),  has
          issued a decision in direct conflict with the holding in JRD.  The 
          Lavanant court expressly rejected the JRD ruling finding that  the
          DHCR may  properly  require  an  owner  to  submit  complete  rent
          records, rather than records for just four years,  and  that  such
          requirement  is  both  rational  and  supported  by  the  Law  and
          legislative history of the Omnibus Housing Act.

               Since in the  instant  case  the  subject  dwelling  unit  is
          located in the Second  Department,  the  DHCR  is  constrained  to
          follow the JRD decision in  determining  the  tenant's  overcharge
          complaint, limiting the requirement for rent records to  April  1,
          1980.  An examination of the  rent  records  from  April  1,  1980
          discloses that no rent overcharge occurred in  that  the  tenant's
          rent was $155.00 on April 1,  1980,  and  then  was  increased  to
          $165.00 effective July 1,  1980,  $180.00  effective  February  1,
          1982, and $206.20 effective February 1, 1985,  all  in  accordance
          with applicable guideline rent increases.

               THEREFORE, in accordance with the Appellate  Division  ruling
          in JRD, 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



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                                                    
          ```````````````
















                            ADMINISTRATIVE REVIEW BUREAU
                                 COVERING MEMORANDUM










          ARB Docket No.: BE 210313 RO

          DRO Docket No/Order No.: K-3105196-R

          Tenant(s): Lucy Peterson

          Owner: William Erbis

          Code Section: 2526.1 of RSC

          Premises: 598 Union Avenue, Brooklyn, New York, Apt. 4R

          Order        and         Opinion         Granting         Petition
                           
               Petition granted on basis owner submitted a  complete  rental
          history pursuant to JRD and an examination of such rental  history
          discloses that no rent overcharge occurred.










          APPROVED:



          Processing Attorney:                                             

          Supervising Attorney:                                            

          Bureau Chief:                                                    

          Deputy Commissioner:                                             

          Mailed copies of Order and Determination to:
                           Tenant(s)                 
                           Owner                     
                           Tenant's Atty             
                           Owner's Atty              


                           Date:              :  by               
                                                    signature
                    


                                      



























    

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