CA 110137 RO
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.: CA 110137 RO
Kraus Mgmt. Inc., DISTRICT RENT ADMINISTRATOR
DOCKET NO.: 42630
PETITIONER Tenant: Serafina Perdomo
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On January 13, 1988, the above named owner filed a Petition for
Administrative Review of an Order issued on December 16, 1987 by
the District Rent Administrator concerning the housing
accommodations known as 69-38 138th Street, Apartment B, Flushing,
New York wherein the District Rent Administrator established base
date services and determined that the tenant was overcharged in
The issue in this appeal is whether the District Rent
Administrator's order was warranted.
The applicable sections of the Law are Sections 2520.6 and 2526.1
of the Rent Stabilization Code.
The Commissioner has reviewed all of the evidence in the record and
has carefully considered that portion of the record relevant to the
issues raised by the administrative appeal.
This proceeding was originally commenced on August 16, 1984 by the
filing of a Tenant's Objection To Rent/Services Registration
wherein the tenant indicated that, among other things, she was
being overcharged in rent. The tenant also listed certain services
which she indicated should be included in the Registration
including the provision of a community room which commenced in
In answer to the filing of the Tenant's Objection To Rent/Services
Registration, the owner stated, in essence, that it was maintaining
all base date services and that screen doors and storm windows were
not base date services, and that the tenants have been provided
with the use of a community room on a temporary basis.
CA 110137 RO
In Order No. 42630, the Rent Administrator ordered that the 1984
Registration be amended to reflect that the owner provides all the
services cited by the tenant in her objection except screen doors
and storm windows, but that certain items cited therein need not be
registered to the extent that said items are an integral part of
the structure, normal maintenance and repair, or required by law.
In addition, the Administrator determined that the tenant had been
overcharged in the amount of $155.94, including interest, and
directed the owner to refund such overcharge to the tenant.
Specifically, the Administrator determined that, for the renewal
lease commencing August 1, 1981 and expiring July 31, 1984, the
total amount of overcharge in rent was $129.60. In addition, for
the subsequent renewal lease commencing August 1, 1984 and expiring
July 31, 1986, the total amount of overcharge in rent was $24.00.
Accordingly, the Administrator determined that the owner was liable
for $153.60 ($129.60 + $24.00) in overcharges plus $2.34 in accrued
interest for the period April 1, 1984 through July 31, 1986,
totalling $155.94 ($153.60 + $2.34).
In this petition the owner contends in substance that the Rent
Administrator's Order should be modified. The owner states that it
is not liable for overcharges prior to September 1, 1982 to the
extent that said overcharges occurred during the prior ownership.
The owner further states that the Community Room, which was listed
in the Administrator's determination among the services to be
included in the 1984 Registration, was not a base date service and
that a previous Administrator's Order (30929) determined that the
tenants have been provided with the use of a Community Room on a
The Comissioner notes that on March 25, 1992 the owner was mailed
a Notice of Opportunity to Present Further Information and
Evidence. However, the owner did not respond to said notice.
The Commissioner is of the opinion that this petition should be
Section 2520.6(r) of the Rent Stabilization Code provides in
pertinent part that "required services" are those services
furnished or required to be furnished to the continuously
stabilized housing accommodations on May 31, 1968, and all
additional services provided or required to be provided thereafter.
The base date for determining required individual apartment
services in apartments which were either vacancy destabilized or
decontrolled between July 1, 1971 and June 30, 1974 is May 29,
In the instant case an examination of the record disclosed that,
the provision of a Community Room was, in fact, provided by the
owner after the applicable base date (either May 31, 1968 or May
29, 1974). Therefore, the provision of a Community Room is a
CA 110137 RO
Section 2526.1(f)(2) of the Rent Stabilization Code provides in
pertinent part that, for overcharge complaints filed or overcharges
collected on or after April 1, 1984, a current owner shall be
responsible for all overcharge penalties based upon overcharges
collected by any prior owner.
In the instant case, the tenant's overcharge complaint was filed
after April 1, 1984. Accordingly, the owner herein is responsible
for the refund of the entire overcharge ($155.94) to the tenant.
However, this order is issued without prejudice to any action the
owner herein may have against any prior owner for the refund of
overcharges actually collected by any prior owner.
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. In addition because this
determination concerns lawful rents only through the date of
January 31, 1984 used in the Administrator's Order being appealed,
the owner is further directed to adjust subsequent rents to an
amount no greater than that determined by the Rent Administrator's
order plus any lawful increases.
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, the tenant may offset against any rent thereafter due the
owner not in excess of twenty percent per month of the overcharge.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
ORDERED, that this petition be, and the same hereby is, denied, and
that the District Rent Administrator's Order be, and the same
hereby is, affirmed.
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner