Docket No. BK 110239 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. BK 110239 RO
METROPOLITAN ASSOCIATES, DISTRICT RENT ADMINISTRATOR'S
DOCKET NO. 034088
Tenant: Stephen Irwin
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN PART
On November 9, 1987, the above-named owner filed a petition for
administrative review of an order issued on October 26, 1987 by a
District Rent Administrator concerning the housing accommodation
known as Apartment L-2, 18-35 Corporal Kennedy Street, Bayside,
New York, wherein the owner was directed to roll back the rent and
to refund overcharges of $391.15, including excess security and
accrued interest for overcharges collected after April 1, 1984.
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 petition for review.
The proceeding was commenced by the filing of a rent overcharge
complaint by the tenant on September 28, 1984.
The tenant took occupancy pursuant to a two-year lease commencing
on October 1, 1977 and expiring on September 30, 1979 at a monthly
rent of $360.99.
In its answer the owner submitted a complete rental history, filed
with the Division of Housing and Community Renewal (D.H.C.R.) on
February 13, 1987. The owner's answer pointed out that a Major
Capital Improvement (M.C.I.) rent increase in the amount of $4.48
per month had been granted earlier.
On April 17, 1987 the Administrator mailed to the owner a letter
requesting the M.C.I. opinion number, or a copy of the actual
order.
The owner, in a letter dated May 11, 1987, informed the
Administrator that the M.C.I. rent increase order was issued under
Docket No. OM-2556.
In the order under review herein, the Administrator found that the
tenant had been overcharged, and determined that the initial legal
rent for the subject tenant was $403.77 for the lease from October
1, 1979 to September 30, 1981. The total overcharges were
determined to be $391.15 including excess security and accrued
interest from April 1, 1984.
Docket No. BK 110239 RO
In the petition for administrative review, the owner asserts that
the Administrator failed to take into account the M.C.I. rent
increase, and that the Administrator erred in finding that the
tenant had been overcharged.
After careful consideration, the Commissioner is of the opinion
that the owner's petition should be granted in part.
The Conciliation and Appeals Board ("C.A.B."), the agency formerly
charged with the enforcement of the Rent Stabilization Law prior
to April 1, 1984, approved an M.C.I. rent increase for the subject
premises on June 4, 1981, under Docket No. OM-2556. The order
provided for a 1.11% increase effective December 18, 1980. The
Commissioner finds that the M.C.I. rent increase should have been
calculated in determining the lawful stabilized rent of the
subject apartment. Recalculation shows the total overcharge
through September 30, 1986 to be $49.21.
The pertinent calculations are set forth on the attached rent
calculation chart, which is fully a part of this order and
opinion. The owner is cautioned that rents for the period
subsequent to September 30, 1986 should be based upon the amount
of $515.41 for the lease period of October 1, 1984 through
September 30, 1986 as indicated on the chart, and that any demand
for and collection of an amount in excess of the lawful amount may
give rise to a new overcharge complaint, in which treble damages
may be awarded if warranted.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
it is
ORDERED, that this petition be, and the same hereby is, granted in
part; and that the Administrator's order be, and the same hereby
is, modified, as described hereinabove and as appears on the
annexed Rent Calculation Chart, which is hereby made fully a part
of this order and opinion; and it is
FURTHER ORDERED, that the owner shall immediately refund to the
tenant all amounts not yet refunded representing overcharges,
penalties, and excess security; and it is
FURTHER ORDERED, that if the owner has not commenced a proceeding
pursuant to Article 78 of the Civil Practice Law and Rules for
judicial review of this order within 60 days of its issuance, the
tenant may recover the total overcharge of $49.21 (or so much of
Docket No. BK 110239 RO
it as may still be owing) by deducting it from the rent due to the
owner at a rate not in excess of twenty percent of the amount of
the penalty for any one month's rent; and it is
FURTHER ORDERED, that if the owner has complied with the
Administrator's order regarding the rent for the period commencing
October 1, 1986, and, as a result of the instant determination,
there are arrears due to the owner from the tenant, the tenant may
pay off the arrears in twelve equal monthly installments during
the next twelve months. Should the tenant vacate after the
issuance of this order, all arrears are due immediately.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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