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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. BI410109RO
: DRO DOCKET NO.L3113393R
SOLIL MANAGEMENT CORP. TENANT: BETH ISRAEL
MEDICAL CENTER
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On September 24, 1987, the above-named petitioner-owner filed
a Petition for Administrative Review against an order issued on
August 20, 1987, by the Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York, concerning the housing accommodations
known as 145 East 16th Street, New York, New York, Apartment No.
17J, wherein the Rent Administrator determined that the owner had
overcharged the tenant.
The Commissioner notes that this proceeding was filed 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
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 by the filing in
March, 1984 of a rent overcharge complaint by the tenant in which
the tenant stated that it first rented the subject apartment
pursuant to a one year lease commencing July 1, 1981 at a rental of
$697.34 per month.
In response to the tenant's complaint, the owner submitted a
rental history from November 1, 1967 but did not submit a lease for
the period commencing November 1, 1978. The owner stated that the
lease commencing November 1, 1978 was a three year renewal lease
with a rent of $403.39 per month.
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In Order Number CDR 31,161, 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 $23,510.08 including
interest on that portion of the overcharge occurring on and after
April 1, 1984.
In this petition, the owner contends in substance that it did
not default as witnessed by an "Assurance of Discontinuance" which
it entered into with the Attorney General and in fact refunded
$12,391.92 plus interest for a total of $15,643.44 to the tenant
herein Beth Israel Medical Center. In support of such contention,
the owner submitted a copy of the "Assurance of Discontinuance" and
a copy of the check dated August 28, 1987.
The tenant did not file an answer to the owner's petition.
The Commissioner is of the opinion that this petition should be
granted.
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 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 did provide rental history from
the base date as mandated by Section 42A. Although the owner did
not provide a copy of one renewal lease commencing November 1, 1978,
the amount of rent listed by the owner for this period exactly
coincides with the three year guideline increase of 8 1/2 percent
for a renewal lease pursuant to Guideline 10 that the owner was
entitled to take. In view of the foregoing, the Commissioner finds
it appropriate to deem a lease for this period and consider the
owner to have provided a full rental history. An examination of
such rental history discloses that the owner did in fact overcharge
the tenant by a slightly lesser amount than determined by the
calculations made during the course of the "Assurance of
Discontinuance" proceeding. Accordingly, the Commissioner accepts
such calculations and finds that the owner has properly refunded
$15,643.44 to the tenant herein and that the lawful stabilization
rent for the subject apartment effective July 1, 1984 is $578.67 -
the amount listed in the calculations of the "Assurance of
Discontinuance" proceeding.
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
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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.
A copy of this order is being sent to the tenant now in
occupancy since the tenant herein has vacated the subject apartment.
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, and, that the order of the Rent
Administrator be, and the same hereby is, revoked.
ISSUED
JOSEPH A. D'AGOSTA
Deputy Commissioner
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