BH 610109 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


      ------------------------------------X 
      IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
      APPEAL OF                              DOCKET NO. BH 610109 RO

                                          :  DISTRICT RENT OFFICE
           Richard Albert,                   DOCKET NO. TC-077124-G
                                            
                                             TENANTS: Barbara & Neil          
                                                      Armstrong

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

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


      On August 5, 1987, the above-named owner filed a Petition for 
      Administrative Review against an Order issued on July 3, 1987, by the 
      Rent Administrator, concerning the housing accommodations known as 3054 
      Godwin Terrace, Bronx, New York, Apartment No. A, wherein the Rent 
      Administrator determined that the owner had defaulted in its obligation 
      to provide a full rental history.

      The Administrative Appeal is being determined pursuant to the provisions 
      of Section 2526.1 of the Rent Stabilization Code.

      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 issue herein is whether the Rent Administrator's Order finding the 
      above-named owner in default 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 on September 21, 
      1982 of a rent overcharge complaint by the tenant.

      A notice dated July 1, 1986 was served on the owner informing the owner 
      of the tenant's overcharge complaint and the requirement that said owner 
      submit to the DHCR a complete rental history.

      In response to the tenant's complaint, a rental history dating back to 
      August 1, 1982 and a Landlords Report Of Statutory Decontrol showing 







          BH 610109 RO

      that the subject apartment became decontrolled on November 30, 1979 were 
      submitted to the DHCR.

      On May 27, 1987, the owner was served with a Final Notice of Pending 
      Default wherein the owner was notified that it failed to submit a 
      complete rental history and that it was given a final opportunity to 
      submit to the Division the requisite rental history.

      In Order Number TC-077124-G, the Rent Administrator determined that, due 
      to the owner's failure to submit to the DHCR a complete rental history, 
      the lawful stabilization rent was calculated using the Section 42A 
      Default Procedure, effecting a rent overcharge of $6,465.83, including 
      excess security and interest on that portion of the overcharge occurring 
      on and after April 1, 1984.

      In this petition, the owner requests reversal of the Rent 
      Administrator's order and contends in substance that it should not be 
      held to have defaulted since the prior owner had already submitted to 
      the DHCR the requisite rental history and that therefore the current 
      owner should not be obligated to provide the DHCR with said rental 
      history.

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

      Section 42A of the former Rent Stabilization Code requires that a 
      current owner retain complete records for each stabilized apartment in 
      effect from June 30, 1974 to date 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 and submit a rental 
      history from that date.  In the instant case, the base rent date was 
      established as November 30, 1979, the date that the subject apartment 
      became decontrolled.  Accordingly, the owner was required to submit to 
      the DHCR rent records dating back to November 30, 1979.

      The Commissioner notes that, contrary to the petitioner's contention 
      that a requesite rental history had already been submitted to the DHCR 
      by the prior owner, evidence of the record shows that the rental history 
      submitted by the prior owner was in fact incomplete to the extent that 
      said rental history failed to account for the period November 30, 1979 
      through July 31, 1982 and that, subsequently, the new (current) owner 
      was requested to furnish the DHCR with the requisite rental history.

      The record discloses that, although the current owner responded to a 
      notice of the tenant's overcharge complaint and a Final Notice Of 
      Pending Default, it did not submit a rental history.  Accordingly, the 
      lawful stabilization rent was established for the subject apartment 
      using the Section 42A Default Procedure which was based on the Rent 
      Administrator's correct determination that the owner had defaulted in 
      its obligation to provide a full rental history.

      Because this determination concerns lawful rents only through the period 
      used in the Rent Administrator's calculations, the owner is cautioned to 
      adjust subsequent rents to an amount no greater than that determined by 
      the Rent Administrator's order plus any lawful increases, and to 
      register any adjusted rents with this order and opinion being given as 
      the explanation for the adjustment.



          BH 610109 RO

      This order may, 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, be filed and enforced in the same manner as a judgment or not 
      in excess of twenty percent per month thereof may 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, denied, and, that the order of the Rent Administrator be, and 
      the same hereby is, affirmed.


      ISSUED:



                                                                    
                                      JOSEPH A. D'AGOSTA
                                      Acting Deputy Commissioner






    

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