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. BG430011RO
: DISTRICT RENT OFFICE
DSZ Realty Company, DOCKET NO. L3118156R
TENANT: Neil M. Leff
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On September 24, 1987, the above-named owner filed a Petition for
Administrative Review against an order issued on September 10, 1987 by
the Rent Administrator concerning the housing accommodations known as 16
West 85th Street, New York, New York, Apartment No. 1B, wherein the Rent
Administrator determined that the owner had defaulted in its obligation
to provide the DHCR a complete rental history.
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 determination
finding the owner in default 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 on March 30, 1984
of a rent overcharge complaint by the tenant.
A notice was served on the owner informing the owner of the tenant's
overcharge complaint and the requirement that said owner submit to the
DHCR a complete rental history.
In response to the tenant's complaint, the owner stated in substance
that, among other things, it purchased the building in 1977 and that it
submitted with its response all of the leases it had in its possession,
establishing a rental history dating back to October 1, 1977.
Subsequently, the owner was served with a Final Notice of Pending
Default, wherein the owner was notified that it failed to submit to the
DHCR a complete rental history and that it was given a final opportunity
to do so.
The owner responded to the above Final Notice of Pending Default stating
in essence, that it had previously submitted its response to the
tenant's overcharge complaint. The owner submitted with its response a
rental history dating back to October 1, 1977.
In Order Number L3118156R, the Rent Administrator determined that, due
to the owner's failure to submit to the DHCR a complete rental history,
the lawful stabilization rent was calculated using the Section 42A
Default Procedure, effecting a rent overcharge of $9,550.01, including
excess security and interest on that portion of the overcharge occurring
on and after April 1, 1984.
In its petition, the owner objects to the Rent Administrator's
determination that said owner failed to produce to the DHCR the
requisite rental history in the prior proceeding. The owner submitted
a rental history with its petition. Further the owner alleges that it
should have been credited with a guideline increase and vacancy
allowance upon initial occupancy by the tenant herein.
The Commissioner is of the opinion that this petition should be denied.
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
The Commissioner notes that it is incumbent upon a new owner to obtain
the requisite rental histories when taking title to a building. A
failure to obtain a rental history will not serve to excuse a present
owner from compliance with the Rent Stabilization Law and Code.
The Commissioner finds that, contrary to the petitioner's contention
that a requisite rental history had already been submitted to the DHCR,
evidence of the record shows that the rental history submitted was, in
fact, incomplete to the extent that said rental history failed to
account for the period June 30, 1974 through September 30, 1977.
Accordingly, the lawful stabilization rent established for the subject
apartment was calculated utilizing the Section 42A Default Procedure
inasmuch as the Rent Administrator properly determined that the owner
had defaulted in the requirement that it submit to the DHCR a complete
The Commissioner further notes that, pursuant to Section 42A Default
procedure, a guidelines adjustment and vacancy allowance for the
complaint tenant's vacancy lease are disallowed.
Further, although the owner submitted a rental history with its appeal,
the Commissioner notes that a rental history cannot be accepted for
consideration on appeal since this is not a de novo proceeding and the
owner has not provided a satisfactory explanation for the non submission
of the requisite rental history in the proceeding before the Rent
Administrator. Moreover the rental history submitted on appeal also was
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