BL 410305 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. BL 410305 RO
BARRY MARK, DISTRICT RENT ADMINISTRATOR'S
DOCKET NO. L-3117617-R
PETITIONER TENANT: MARK WOLFF
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN PART
On December 4, 1987, the above-named owner filed a petition for
administrative review of an order issued on November 16, 1987 by
a District Rent Administrator concerning the housing
accommodation known as Apartment 3B, 346 East 19th Street, New
York, New York, wherein the Administrator determined that the
tenant had been overcharged.
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 tenant filed a complaint of rent overcharge, dated February
27, 1984, with the New York City Conciliation and Appeals Board
(CAB), the agency formerly charged with enforcement of the Rent
Stabilization Law.
On April 1, 1984, responsibility for the administration of rent
stabilization in New York City was transferred to the New York
State Division of Housing and Community Renewal (DHCR).
The tenant commenced occupancy on April 15, 1983 pursuant to a
one year lease, expiring on April 14, 1984, at a monthly rent of
$635.00.
In the order here under review, the Administrator found that the
owner submitted a full rental history, and found total
overcharges in the amount of $2,607.86, including excess security
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and accrued interest from April 1, 1984.
In his petition for review, the owner asserts that the prior
tenant had agreed to a rent increase with the prior owner, Joseph
Delorenzo, for certain improvements to the subject apartment.
The owner asserts that the Administrator erred in not including
this increase in the calculations. Secondly, the owner contends
that since the complaint was filed prior to April 1, 1984 and
it purchased the subject building on January 17, 1985, the owner
should not be liable for any overcharges collected prior to
January 17, 1985. The owner claims it is liable only for the
period that it was collecting rent from the complainant. The
owner includes with its petition for review a copy of a deed
showing that the owner had purchased the subject building on
January 17, 1985.
After careful consideration, the Commissioner is of the opinion
that the owner's petition should be granted in part.
The Commissioner finds that the Administrator correctly did not
allow any rent increase for improvements in the subject
apartment. The owner acknowledges that the work done, if any,
was not completed. In addition, insufficient documentation was
submitted to describe the nature or costs of the alleged
improvements.
The current owner purchased the subject premises on January 17,
1985. Pursuant to Section 2526.1(f) of the Rent Stabilization
Code, the prior owner, Joseph Delorenzo, is solely liable for
those overcharges occurring prior to April 1, 1984 which he
collected from the tenant. The petitioner-owner is jointly and
severally liable with the prior owner for overcharges occurring
from April 1, 1984 until the prior owner sold the subject
premises to the petitioner-owner. The petitioner-owner is solely
liable for overcharges occurring after January 17, 1985.
Accordingly, the Commissioner finds that the Administrator's
order should be modified so that the prior owner and the
petitioner-owner are jointly and severally liable for
overcharges occurring from April 1, 1984 to January 16, 1985.
The owner is cautioned that rents for periods subsequent to April
14, 1985 should be based upon the amount of $554.53 for the lease
period of April 15, 1984 through April 14, 1985, 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. A copy of this order
and opinion is being sent to the current occupant of the subject
apartment.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
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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 in accordance with this order and opinion;
and it is
FURTHER ORDERED, that the owners, Joseph Delorenzo and Barry
Mark, shall immediately refund to the tenant all amounts not yet
refunded representing overcharges, penalties, and excess security
deposits; and it is
FURTHER ORDERED, that if the owners, Joseph Delorenzo and Barry
Mark, have not refunded any such amounts upon the expiration of
the period for seeking judicial review of this order pursuant to
Article 78 of the Civil Practice Law and Rules, the tenant may
file and enforce this order as a judgment for the amount of
$1,177.82 against Joseph Delorenzo, individually and for the
amount of $1,110.04 against Joseph Delorenzo and Barry Mark,
jointly and severally, and for the amount of $320.00 against
Barry Mark, individually.
ISSUED:
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JOSEPH A. D'AGOSTO
Acting Deputy Commissioner
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