STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO. BJ230054RO
: DISTRICT RENT OFFICE
Royal B Associates, DOCKET NO. K3104205/
TENANT: Scotty Maxwell
ORDER AND OPINION REMANDING PROCEEDING FOR FURTHER PROCESSING
On October 21, 1987, the above-named petitioner-owner filed a Petition
for Administrative Review against an order issued on September 18, 1987
by the Rent Administrator, 10 Columbus Circle, New York, New York,
concerning the housing accommodations known as 294 Webster Avenue,
Brooklyn, New York, Apartment No. D-9, 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 issue
raised by the administrative appeal.
This proceeding was commenced on March 31, 1984 when the tenant filed an
overcharge complaint. The tenant commenced occupancy on April 1, 1981.
Review of the record discloses that a copy of the complaint was sent to
the prior and the then-current owners.
The owners did not respond.
Subsequently, in a Final Notice of Pending Default, the owners were
informed that failure to submit documentation substantiating the base
rent date would result in a default and the consequent establishment of
the lawful stabilization rent by use of court-approved default
procedures. No response was submitted.
In Order Number CDR31,418, the Rent Administrator determined that due to
the owner's failure to submit a full rental history, the lawful
stabilized rent is $119.33 as of April 1, 1981 through January 31, 1985
and that the owner had collected a rent overcharge of $2,178.89
inclusive of excess security and treble damages on that portion of the
overcharge occurring on and after April 1, 1984.
In the appeal, the owner contends in substance that it owned the subject
building from February 14, 1984 to January 10, 1986, that it collected
the same rent as was in effect when it purchased the building, that it
never increased the rent, that it has never been requested to submit a
rent history and that it sold the subject building on January 10, 1986.
An examination of agency records reveals that the present owner
registered the subject building in 1986. Although the order herein
appealed was not issued until 1987, the present owner was not served
with the complaint. To ensure due process rights this proceeding should
be remanded to permit the present owner to respond to the complaint.
The Commissioner notes that the subject premises is located in the
Second Department . In accordance with the decision in J.R.D. Mgmt. v.
Eimicke, 148 A.D.2d 610, 539 N.Y.S. 2d 667 (App. Div. 2d Dept., 1989),
the owner is required to submit the rental history only from April 1,
THEREFORE, in accordance with the Rent Stabilization Law and Code, it is
ORDERED, that this proceeding be, and the same hereby is, remanded for
further processing in accordance with this order and opinion. The
automatic stay of so much of the District Rent Administrator's order as
directed a refund is continued until a new order is issued upon remand.
However, the Administrator's determination as to the rent is not stayed
and shall remain in effect, except for any adjustments pursuant to lease
renewals, until the Administrator issues a new order upon remand.
JOSEPH A. D'AGOSTA