BI 410166 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

                                    APPEAL OF                               
               DOCKET NO.:  BI 410166 RO

                     M. J. RAYNES INC.,            DISTRICT RENT OFFICE
                                                  DRO DOCKET NO.: U-3124380 R

                                                  TENANT:  MADELINE SHIKAR


          On September 24, 1987 the above-named petitioner-owner filed a 
          Petition for Administrative Review against an order issued on 
          August 14, 1986, by the Rent Administrator, 10 Columbus Circle, 
          New York, New York, concerning the housing accommodations known 
          as 200 East End Avenue, New York, New York, Apartment No. 8E, 
          wherein the Rent Administrator determined that the owner had 
          overcharged the tenant.

          The Commissioner notes that this proceeding was initiated 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 

          The Commissioner has reviewed all of the evidence in the record 
          and has carefully considered that portion of the record relevant 
          to the issues raised by the administrative appeal.

          This proceeding was originally commenced by the filing in March 
          31, 1984 of a rent overcharge complaint by the tenant.

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          In response to the tenant's complaint, the owner submitted a 
          rental history from May 1, 1977 through April 30, 1986 and 
          requested by its attorney an extension of time in which to submit 
          a complete answer.

          In Order Number CDR 21,136, 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 $10,674.16 
          including interest on that portion of the overcharge occurring on 
          and after April 1, 1984.

          In this petition the owner contends in substance that the order 
          was mailed to its former address, an address not in use for at 
          least three years.  Moreover, despite the appearance of the 
          owner's attorneys, no copy of the order was mailed to them.

          In answer to the owner's petition, the tenant states in substance 
          that the owner has never submitted a complete rental history; the 
          Administrator's order is correct and should be upheld.

          The Commissioner is of the opinion that this petition should be 

          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 to date and to 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 owner has not provided a complete rental 
          history as mandated by Section 42A.

          The owner's contentions regarding the mailing mishaps of the 
          order, which, confirmed by the Division's records, permit 
          acceptance of an appeal filed more than 35 days after the 
          issuance of the order, did not justify the persistent failure by 
          the owner to submit a complete rental history.  The Commissioner 
          notes that the owner was first notified on April 4, 1984 of the 
          complaint and of the requirement to submit base date rent records 
          and was further notified on April 30, 1986 of pending default.  
          Yet even in this appeal, the owner has failed to produce the 
          required documents.

          With regard to the owner's supplemental assertion regarding the 
          applicability for the decision in J.R.D. Mgt. v. Eimicke, 148 
          A.D.2d 610, 539 N.Y.S.2d 667 (App. Div. 2d Dep't 1989), motion 
          for leave to reargue or for leave to appeal to the Court of 
          Appeals denied (App. Div. 2d Dep't, N.Y.L.J., June 28, 1989, 

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          p.25, col. 1), motion for leave to appeal to the Court of Appeals 
          denied (Court of Appeals, N.Y.L.J., Nov. 24, 1989, p. 24, col. 
          4), motion for leave to reargue denied (Court of Appeals, 
          N.Y.L.J., Feb 15, 1990, p. 25, col. 1), to the instant case the 
          Commissioner notes that subsequent to the issuance of the 
          decision in JRD, the Appellate Division, First Department, in the 
          case of Lavanant v. DHCR, 148 A.D.2d 185, 544 N.Y.S.2d 331 (app. 
          Div. 1st Dept. 1989) expressly rejected the JRD ruling finding 
          that the DHCR may properly require an owner to submit complete 
          rent records, rather than records for just four years, and that 
          such requirement is both rational and supported by the law and 
          legislative history of the Omnibus Housing Act.

          Since in the instant case the subject dwelling unit is located in 
          the First Department, the DHCR must follow the Lavanant decision 
          in determining the overcharge complaint.  Therefore, the 
          Commissioner finds that the JRD decision inapplicable to the 
          issues raised in this appeal.

          Accordingly, the Rent Administrator's order establishing the 
          lawful stabilization rent utilizing the Section 42A default 
          procedure and finding a rent overcharge was warranted.

          Because this determination concerns lawful rents only through 
          April 30, 1986, 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.

          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 judgement or not in excess of twenty percent per 
          month thereof may be offset against any rent thereafter due the 

          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.

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          JOSEPH A. D'AGOSTA

          BI 410166 RO

          Acting Deputy Commissioner

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