BI110061RO
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. BI110061RO
: DRO DOCKET NO.Q3119665R
GOLDMORE REALTY CO. TENANT: IRWIN & BELLA GUZOV
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN
PART
On September 1, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on August
13, 1987, by the Rent Administrator, 92-31 Union Hall Street,
Jamaica, New York, concerning the housing accommodations known as
65-50 Wetherole Street, Queens, New York, Apartment No. 3U, wherein
the Rent Administrator determined that the owner had overcharged the
tenants.
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 commenced in March, 1984 by the tenants'
filing of a rent overcharge complaint in which the tenants stated
that they first moved to the subject apartment on July 1, 1969 at a
rental of $295.00 per month. In an answer to the complaint filed in
November 1984, the owner submitted a complete rental history through
that date. Subsequently, the tenants advised that they signed a two
year lease renewal effective July 1, 1986 at a rental of $591.34 per
month. The owner was not afforded an opportunity to submit an
updated rental history.
In Order Number CDR 31,066, the Rent Administrator determined
that an overcharge of $849.64 had occurred during the period from
July 1, 1972 through June 30, 1986 including interest on the period
on and after April 1, 1984 and directed the owner to refund such
overcharge to the tenants. However, the Rent Administrator found no
overcharge for the period commencing July 1, 1986 but determined
that the lawful stabilization rent commencing July 1, 1986 could
have been $596.28 but was limited to the $591.34 actually charged
the tenants.
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In this petition, the owner alleges in substance that the rent
in the lease commencing July 1, 1986 was $604.65 rather than the
amount of $591.34 as listed in the Rent Administrator's order so
that the lawful stabilization rent for this period should have been
listed as the $596.28 the owner could have charged (since the owner
was actually charging more and not less as the Rent Administrator
thought).
The Commissioner is of the opinion that this petition should be
granted in part.
An examination of the rent registration records for the subject
apartment discloses that the owner is correct in its contention that
it charged the tenants herein a rental of $604.65 for the two year
lease commencing July 1, 1986. Further, the lawful stabilization
rent for the period commencing July 1, 1986 was $596.28 (6.5% over
the prior rent of $559.89 for a two year renewal lease pursuant to
Guideline 17). Since the owner was in fact charging more than
$596.28, the amount of $596.28 should have been listed as the lawful
stabilization rent rather than $591.34. However there is an
additional overcharge during the period from July 1, 1986 through
August 31, 1977 (last date of month in which Rent Administrator's
order was issued) of $123.77 (overcharge of $8.37 per month -
difference between collected rent of $604.65 and lawful
stabilization rent of $596.28 - plus interest). The total
overcharge is as follows: $849.64 as previously determined by Rent
Administrator plus $123.77 plus excess security of $8.37 for a total
of $981.78. The Rent Administrator's order is hereby amended to
reflect the above.
It is noted that the owner was granted a rent increase in
August 1987 for a major capital improvement. Such rent increase is
not reflected in this order but would not change the amount of the
overcharge herein determined.
The owner is directed to reflect the findings and
determinations made in this order on all future registration
statements, including those for the current year if not already
filed, citing this order as the basis for the change. Registration
statements already on file, however, should not be amended to
reflect the findings and determinations made in this order. The
owner is further directed to adjust subsequent rents to an amount no
greater than that determined by this order plus any lawful increases
including the aforementioned major capital improvement rent
increase.
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
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with this order and opinion. The lawful stabilization rent
effective July 1, 1986 is $596.28 and the total amount of the
overcharge through August 31, 1977 is $981.78.
ISSUED
JOSEPH A. D'AGOSTA
Deputy Commissioner
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