BF 410240 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
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IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO. BF 410240 RO
: DRO DOCKET NO. L-3114784-R
LIMASSOL REALTY TENANT: MESNARD & O'HAYER
PETITIONER :
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On June 19, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on June
4, 1987, by the Rent Administrator, 10 Columbus Circle, New York,
New York, concerning the housing accommodations known as 310
Bleecker Street, New York, New York, Apartment No. 1, 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 42A of the former 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 tenants who
stated that they first moved to the subject apartment on August 1,
1983 at a rental of $1200.00 per month.
The owner and prior owner were served with a copy of the
complaint and were directed to submit a complete rental history
for the subject apartment from the base date including copies of
all leases. The current owner submitted a copy of a Report of
Statutory Decontrol showing the subject apartment was vacancy
BF 410240 RO
decontrolled from the Rent Control Law on January 18, 1974 and
rerented on February 1, 1974. The current owner also submitted
copies of leases for the subject apartment from March 1, 1978 to
March 1, 1983 listing the tenant during such period as Warren
Colnaghi. The current owner also submitted evidence showing that
Mr. Colnaghi was one of the partners of the prior owner and stated
that due to such factor, the subject apartment was destablized
when the current owner purchased the subject premises in November
1983. The prior owner did not submit any rental history for the
subject apartment. Subsequently, one of the tenants advised that
she had vacated the subject apartment.
In Order Number CDR 30,504, the Rent Administrator determined
that due to the owner's failure to submit a complete rental
history, the owner had collected a rent overcharge of $628.81
through July 31, 1984, determined the lawful stabilization rent
was $1151.82 effective August 1, 1983, and directed the owner and
prior owner to refund that portion of the overcharge each
collected to the tenants.
In this petition, the current owner contends in substance
that the relevant rent history it submitted showing the
destabilization of the subject apartment was disregarded by the
Rent Administrator.
The Commissioner is of the opinion that this petition should
be denied.
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 and produce them to the
DHCR upon demand. If the apartment was decontrolled from the Rent
Control Law after June 30, 1974, the owner must provide
satisfactory documentary evidence of the apartment's date of
decontrol.
In the instant case, the owner has not provided a complete
rental history as mandated by Section 42A. The owner has
submitted leases only from March 1, 1978 although the base date in
this case was established as June 30, 1974. The fact that one of
the partners of the prior owner was a tenant prior to occupancy by
the tenants herein does not serve to destabilize the subject
apartment and excuse the current owner from its obligation to
submit a complete rental history. An examination of the leases
with the prior partner and tenant Warren Colnaghi discloses that
the last lease was for $1,151.82 and referred to Mr Colnaghi as a
tenant pursuant to the Rent Stabilization Law - obviously the
parties did not consider the arrangement as owner occupancy of the
subject apartment. Accordingly, the Rent Administrator's order
establishing the lawful stabilization rent utilizing the Section
42A default procedure and finding a rent overcharge was warranted.
A copy of this order is being sent to the tenant now in
occupancy at the subject apartment.
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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, denied, and, that the order of the Rent
Administrator be, and the same hereby is, affirmed.
ISSUED
ELLIOT SANDER
Deputy Commissioner
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