BG 210244 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.: BG 210244 RO
DISTRICT RENT OFFICE
JRD Management Corp., DOCKET NO.: K 3115400 R
CDR 30,674
TENANT: A.R. Lea
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN PART
On July 8, 1987, the above-named petitioner-owner filed a Petition for
Administrative Review against an order issued on June 26, 1987, by the
Rent Administrator, 10 Columbus Circle, Brooklyn, New York, concerning
the housing accommodations known as 760 Rogers Avenue, New York,
Apartment No. 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 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 of a complaint
of rent overcharge. The owner was served with a copy of the complaint
and was directed to submit a complete rental history.
In answer to the complaint, the owner stated in substance that a refund
of $968.49 had been credited to the tenant on March 23, 1984 and that
the rent had been reduced to $276.16 effective April 1, 1984.
The owner submitted all leases in effect from May 15, 1971 through
April 30, 1985.
During the processing of the order tenant acknowledged the owner's
credit of $968.49 which was used as rent payments for April, May and
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part of June 1984. as well as major capital improvements (hereafter
MCI) rent arrears.
In Order Number CDR 30,674, the Rent Administrator established the
lawful stabilization rent as $274.26 effective May 1, 1982, determined
that the tenant had been overcharged and directed a refund to the
tenant of $176.32 including interest, on that portion of the overcharge
collected on and after April 1, 1984.
In this petition, the owner alleges in substance that the Rent
Administrator's order failed to include the 1/2 percent stabilizer
increase permitted under Rent Guidelines 6, 6A and increases due
pursuant to MCI orders CDR 29,557 effective February 28, 1982 and CDR
00296 effective July 1, 1982.
The Commissioner is of the opinion that this petition should be granted
in part.
An examination of the records in this case discloses that the owner is
correct in its contentions that the 1/2 percent stabilizer was not
included in the computation of the tenant's vacancy lease term.
Furthermore, the increases due the owner pursuant to MCI orders CDR
29,557 and CDR 00296 had not been included in the computation of the
lawful stabilization rent.
The owner however incorrectly computated the percentage of the increase
in both MCI orders above the rent on the date of issuance of the MCI
order rather than the lawful rent on the rent roll date specified in
each order.
Taking the aforementioned factors into account the Commissioner has
recalculated the lawful stabilization rents by the inclusion of the 1/2
percent stabilizer and the corrected MCI increases. The lawful
stabilization rents and amount of rent overcharge including interest on
overcharges occurring on or after April 1, 1984 are set forth on the
Amended Rent Calculation Chart attached hereto and made a part hereof.
Furthermore, the Amended Rent Calculation Chart reflects the sum of
$968.49 as an offset credit against the total overcharge.
Because this determination concerns lawful rents only through April 30,
1985, the owner is cautioned to adjust subsequent rents to an amount no
greater than that determined by this order plus any lawful increases,
and to register any adjusted rents with this order and opinion being
given as the explanation for the adjustment.
Upon the expiration of the period in which the owner may institute a
proceeding pursuant to Article 78 of the Civil Practice Law and Rules,
not in excess of twenty percent per month thereof of the overcharge may
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be offset against any rent thereafter due the owner.
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, granted in part, and, that the order of the Rent
Administrator be, and the same hereby is, modified in accordance with
this order and opinion. The lawful stabilization rents and the amount
of the rent overcharge are established on the attached chart which is
fully made a part of this order. The amount of the rent overcharge
through April 30, 1985 is $106.25.
ISSUED:
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner
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