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. BJ410309RO
: DRO DOCKET NO. L3115151R
HELMSLEY-SPEAR, INC. TENANT: CATHY A. NUZZO
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On Sept. 30, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
Sept. 11, 1987, by the Rent Administrator, 10 Columbus Circle, New
York, New York, concerning the housing accommodations known as
225 West 23rd Street, New York, New York, Apartment No.4-0
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 2526.1 of the current Rent Stabilization Code
and Section 20A(4) of the former Rent Stabilization Code.
The issue herein is whether the Rent Administrator's order was
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 response to the tenant's complaint, the owner submitted a
complete rental history as required.
In Order Number CDR 31,357, the Rent Administrator determined
that the owner had collected a rent overcharge of $615.52
including interest on that portion of the overcharge occurring on
and after April 1, 1984.
In this petition, the owner contends in substance that applying
the former Code Section 20A(4) in the determination of the
overcharge and then applying the current Code Section 2526.1 to
assess the penalty was not warranted.
The Commissioner is of the opinion that this petition should be
In the instant case, an overcharge was correctly determined
pursuant to Section 20A(4) of the former Code since the owner
incorrectly charged a rent increase prior to the expiration date of
the initial stabilized lease after decontrol of the subject
apartment from the rent control law. An interest penalty pursuant
to Section 2526.1 of the current Code was correctly imposed on the
overcharges occurring on and after April 1, 1984. There is no
conflict in applying these provisions of both the former and current
Rent Stabilization Codes. Accordingly, the Rent Administrator's
order was warranted.
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
This order may, upon the expiration of the period in which the
owner may institute a proceeding pursuant to Article 78 of the Civil
Practice Law and Rules, be filed and enforced in the same manner as
a judgment or not in excess of twenty percent per month thereof may
be offset against any rent thereafter due the owner.
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, denied, and, that the order of the Rent
Administrator be, and the same hereby is, affirmed.
JOSEPH A. D'AGOSTA