BI 410285 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. BI 410285 RO
: DRO DOCKET NO.L-3110519 RT
PLAZA REALTY INVESTORS TENANT: MELVIN BELDOCK
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN
PART
On September 17, 1987, the above-named petitioner-owner filed
a Petition for Administrative Review against an order issued on
August 25, 1987, by the Rent Administrator, 10 Columbus Circle,
New York, New York, concerning the housing accommodations known as
120 East 34th Street, New York, New York, Apartment No. 6-0,
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 in March 1984, by
the filing of a rent overcharge complaint by the tenant. In an
answer to the complaint filed on November 26, 1986, the owner
submitted a rental history for the subject apartment and stated
that it was refunding to the tenant $6,420.36 in ten payments over
the course of the next ten months and was reducing the tenant's
rent from $719.97 to $648.73 effective December 1, 1986.
In Order Number CDR 31,175, the Rent Administrator determined
that the tenant had been overcharged in the amount of $7,283.36,
including interest on the overcharge occurring after April 1, 1984
and excess security, from April 1, 1978 to August 31, 1987, and
directed the owner to refund such overcharge to the tenant. In
calculating the overcharge, the Rent Administrator did not take
into account the rent reduction effective December 1, 1986 nor the
refund of any portion of the overcharge by the owner.
In this petition, the owner contends in substance that the
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Rent Administrator's order failed to take into account the rent
reduction effective December 1, 1986, and the refund of the
overcharge and that in addition the amount of interest on the
overcharge occurring after April 1, 1984 was incorrectly
calculated due to these factors.
In answer to the owner's petition, the tenant acknowledged
the payment of the $6,420.36 refund, but requested the payment of
interest and treble damages on the overcharges occurring on and
after April 1, 1984.
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 contention that it should have been
credited with reducing the tenant's rent effective December 1,
1986, and refunding $6,420.36 to the tenant. However, the owner
is still liable for interest on the overcharge from April 1, 1984
to December 1, 1986 - the date of the rent reduction. Taking into
account the rent reduction from $719.97 to $648.73 (the lawful
stabilization rent) effective December 1, 1986, the total
overcharge from April 1, 1978 through August 31, 1987, including
interest on the overcharge occurring on and after April 1, 1984
and excess security, is $6,581.93 (rather than the $7,283.36
calculated by the Rent Administrator). The owner's refund of
$6,420.36 is then subtracted from $6,581.93 leaving a total
remaining overcharge of $161.57 to be refunded to the tenant.
With regard to the tenant's contention that treble damages
are warranted, it is noted that such issue could only be
considered if the tenant had filed his own petition for
administrative review and not in an answer to the owner's
petition.
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 amount of the rent
overcharge through August 31, 1987 is $161.57, taking into account
the owner's rent reduction effective December 1, 1986 and refund
of $6,420.36, and the lawful stabilization rent effective April 1,
1986 through March 31, 1988 is $648.73.
ISSUED
ELLIOT SANDER
Deputy Commissioner
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