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
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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 :
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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.
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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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