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.CA410093RO
: DRO DOCKET NO.L3111019RT
MELOHN PROPERTIES TENANT: JAMES R. COLLINS
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On January 6, 1988, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
December 11, 1987, by the Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York, concerning the housing accommodations
known as 32 West 82nd Street, New York, New York, Apartment No. 8B,
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.
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 in March, 1984, by the
filing of a rent overcharge complaint by the tenant in which the
tenant stated that he had first moved to the subject apartment on
July 20, 1976 at a rental of $425.00 per month.
In response to the tenant's complaint, the owner submitted a
complete rental history and advised that on November 4, 1986 it had
sent a refund check to the tenant in the amount of $4,351.65 for
past overcharges and had reduced the tenant's rent to $572.13
effective November, 1986.
In Order Number CDR 32,098, the Rent Administrator determined
that the tenant had been overcharged in the amount of $4933.00
through December 8, 1987, directed the owner to refund such
overcharge to the tenant, and advised that if the owner had already
refunded $4,351.65 to the tenant, that this amount could be deducted
from the overcharge amount.
In this petition, the owner alleges in substance that there is
no remaining overcharge in that the tenant cashed the refund check
in December, 1986, and the Rent Administrator failed to credit the
owner with reducing the rent effective November, 1986, but rather
calculated the overcharge as if no rent reduction had been made. In
support of its contentions, the owner submitted a copy of the
cancelled refund check cashed by the tenant and rent ledgers showing
the rent had been reduced effective November, 1986.
The tenant did not file an answer to the owner's petition.
The Commissioner is of the opinion that this petition should be
An examination of the records in this case shows that the owner
is correct in its contention that it was not credited with reducing
the rent effective November, 1986 when the Rent Administrator
determined the amount of the overcharge. Further the owner has
submitted evidence showing it refunded $4351.65 to the tenant in
December, 1986. When these factors are taken into account, it is
apparent that the entire overcharge including interest on the amount
of the overcharge occurring on and after April 1, 1984, and excess
security, was refunded to the tenant prior to the issuance of the
Rent Administrator's order. Therefore, that portion of the Rent
Administrator's order finding a rent overcharge must be revoked.
However, the Rent Administrator's order correctly listed the lawful
stabilization rents for the subject apartment and this part of the
order remains in full force and effect.
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
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, modified in accordance
with this order and opinion.
JOSEPH A. D'AGOSTA