CK 610025-RO
STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
GERTZ PLAZA
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
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IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:
CK 610025-RO
R & G ASSOCIATES, DISTRICT RENT
ADMINISTRATOR'S DOCKET
NO.:
21606
PETITIONER TENANT: Martha Castillanos
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On November 2, 1988, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
October 4, 1988 by a Rent Administrator concerning housing
accommodations known as Apartment 2-E at 108 West 227th Street,
New York, New York, wherein the District Rent Administrator
determined that the tenant had been overcharged in the amount of
$3,390.24, including treble damages and excess security.
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 by the filing by the
tenant on August 15, 1984 of an objection to the Initial Rent and
Services Registration.
The tenants took occupancy in October, 1971 at a rent of $175.00
per month.
The owner was served with a copy of the complaint and was directed
to submit a complete rent history from the base date, including
copies of all leases. The owner failed to submit several leases.
However, the tenant was able to provide them.
In an order issued on October 4, 1988, the Rent Administrator
determined that the tenant had been overcharged in the amount of
$3,390.24, including treble damages and excess security.
In its petition, the owner contends that the imposition of treble
damages was unjust because the error causing the overcharge was
made by one of its employees when setting the tenant's initial
rent, but that the owner was not aware of it. Therefore, all
overcharges were due to an honest error.
The Commissioner is of the opinion that this petition should be
denied.
Section 26-516 of the Rent Stabilization Law provides that any
owner who is found by the DHCR to have collected an overcharge
shall be liable to the tenant for treble damages unless the owner
establishes by a preponderance of the evidence that the
over-charge was not willful, in which case interest shall be
imposed. Section 26-516 also provides that treble damages shall be
applied only to overcharges occurring on or after April 1, 1984.
The record in this case establishes that, although notified of the
possible imposition of treble damages, the owner failed to submit
any evidence to counter the presumption that overcharges occurring
after April 1, 1984 were willful. The contention that the error
causing the overcharge was unbeknownst to the owner is vague and
unsubstantiated and, in any case, will not be con-sidered on
appeal because the owner failed to assert the claim during the
processing of the case. Finally, it is noted that the claim that
the error occurred when setting the tenant's initial rent is
incorrect, since the tenant assumed occupany in October, 1971, at
which time the premises were not subject to the Rent Stabilization
Law.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
it is
ORDERED, that the owner's petition be, and the same hereby is,
denied and that the Administrator's order be, and the same hereby
is, affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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