DOCKET NUMBER: DD 130238-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.: DD 130238-RO
:
DRO DOCKET NO.: CL 130236-OM
MELOHN PROPERTIES PETITIONER :
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ORDER AND OPINION REMANDING PETITION FOR ADMINISTRATIVE REVIEW
On April 25, 1989 the above named petitioner-owner/trustee filed a
Petition for Administrative Review against an order issued on March 22,
1989 by the District Rent Administrator, Gertz Plaza concerning housing
accommodations known as 83-57 118th Street, Queens, New York, Various
apartments wherein the Administrator denied the application and terminated
the proceeding for a major capital improvement rent increase adjustment on
grounds that the application was incomplete at the time of filing since
the applicant failed to indicate on the Contractor/Vendor form (RA-79
Supplement I) whether there existed a relationship, financial or otherwise
between the owner and contractors for three of six items listed in the
application and also failed to specify the age of the heating unit which
had been replaced.
The record discloses that the owner submitted in support of its
application, filed in December 1988, contractors' certifications,
contracts, cancelled checks and various governmental approved and sign
offs.
In its petition for administrative review the owner contends, in
substance, that it was error for the Administrator to have denied the
entire application predicated on six independent items because of the
omission of complete information as to only three items; and that the
Administrator's determination is contrary to long standing Division
processing procedure which is to afford an owner an opportunity to
complete its application by furnishing additional information and
evidence.
Various tenants answered the petition urging the denial thereof.
After a careful consideration of the entire record, the Commissioner is of
the opinion that this petition should be remanded to the Administrator for
further processing in accordance with this order and opinion.
Inherent in the Administrator's authority to pass on an application for a
rent increase adjustment is the authority to deny or reject an application
which is incomplete on its face. The Administrator also has the authority
to request the submission of additional information and evidence deemed
relevant to such application.
At the time the instant application was filed it was the policy of the
Administrator to deny an incomplete application. Currently such
DOCKET NUMBER: DD 130238-RO
application would be rejected without prejudice to refiling (as in the
matter cited by the owner on appeal). In view of the substantial
documentation submitted by the owner and since it is the Administrative
rule to decide pending proceedings under the regulations and procedures
then in effect (unless undue hardships may result therefrom) the
Commissioner is of the opinion that this proceeding should be remanded to
the Rent Administrator for such further processing as may be deemed
warranted with full consideration given to such allegations and
contentions as may be raised by the parties after service of the
application on the tenants.
As to the effective date of any rent increase adjustment to which the
owner may ultimately be found entitled, the Commissioner notes that
Section 2522.2 of the Rent Stabilization code provides that an increase
shall be effective the first rent payment date 30 days after the
application is filed, unless otherwise set forth in the order. Inasmuch
as the owner has failed to offer any explanation for its failure to
respond to pertinent inquiries posed in the application both as to the
age of the heating system or the relationship question on the
Contractor/Vendor form and since such information was not submitted on
appeal, the effective date of any rent increase as to stabilized
apartments shall be no earlier than July 1, 1989, the first rent payment
date 60 days after filing of this petition for administrative review,
provided the owner submits to the administrator in a timely fashion such
additional information and/or documentation as may be requested upon the
remand.
THEREFORE, in accordance with the provision of the Rent Stabilization Code
and the Rent and Eviction Regulations for New York City, it is
ORDERED, that this petition be and same hereby is granted to the extent of
remanding this proceeding to the Rent Administrator for further processing
in accordance with this order and opinion. The order of the Rent
Administrator remains in full force and effect until a new order is issued
upon the remand.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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