DOC. NO.: BH 610102-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. BH 610102-RO
ALLERTON ASSOCIATES, : DRO DOCKET NO.
PETITIONER : TC-079592-G
ORDER AND OPINION REMANDING PETITION FOR ADMINISTRATIVE REVIEW
On August 5, 1987, the above named petitioner filed a Petition for
Administrative Review against an order issued on July 2, 1987 by the
District Rent Administrator, 10 Columbus Circle, New York, New York,
10019, concerning the housing accommodations known as Apartment H-4,
2720 Bronx Park East, Bronx, New York, wherein the District Rent
Administrator determined that the tenant had been overcharged.
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.
The tenant commenced this proceeding by filing a complaint of general
rent overcharge with the New York City Conciliation and Appeals Board,
one of the predecessor agencies to the DHCR. The tenant took
occupancy pursuant to a lease commencing January 1, 1982 and expiring
December 31, 1982 at a monthly rental of $275.00 per month.
The owner of record at the time the complaint was filed was served
with copies of the complaint and was requested to submit rent records
to prove the lawfulness of the rent being charged. That owner failed
to provide a full rental history for the subject apartment.
In the order appealed herein, the Administrator established the lawful
stabilization rent using the default procedure based on the prior
owner's failure to submit required rent records back to the base date
of June 30, 1974, set the lawful stabilization rent at $235.14 as of
December 31, 1984 through December 31, 1986 and ordered a refund of
the overcharges in the amount of $5433.73, including interest on that
portion of the overcharge occurring after April 1, 1984, and excess
DOC. NO.: BH 610102-RO
In this petition, the present owner contends that the Administrator's
order is incorrect and should be reversed because it was never served
in this proceeding and had no opportunity to answer the overcharge
complaint. Furthermore, the default rent computation contained in the
order states that computation method number 2 was being used, but in
actuality the calculation was based on another computation method.
In answer to the petition, the tenant asserts that determination of
her proper rent should not be delayed any further.
The Commissioner is of the opinion that this proceeding should be
remanded to the District Rent Administrator for further processing.
A review of the record discloses that on February 13, 1986 the
Division was notified by the tenant that effective November 1, 1985
the premises were under new ownership. Despite this notification, the
Division on July 21, 1986 sent a Final Notice of Pending Default to
the prior owner. Because the Administrator was notified by the tenant
that there was a new owner, the Administrator was obligated to serve
notice on the new owner. The Commissioner therefore finds that the
proceeding should be remanded to the Administrator to afford the
current owner an opportunity to respond to the tenant's overcharge
THEREFORE, in accordance with the Rent Stabilization Law and Code, it
ORDERED, that this petition be and the same hereby is granted to the
extent of remanding this proceeding to the District Rent Administrator
for further processing in accordance with this order and opinion. The
automatic stay of so much of the District Rent Administrator's order
as directed a refund is hereby continued until a new order is issued
upon remand. However, the Administrator's determination as to the
rent is not stayed and shall remain in effect, except for any
adjustments pursuant to lease renewals, until the Administrator issues
a new Order upon remand.
JOSEPH A. D'AGOSTA