DG 210302 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

          -----------------------------------X
          IN THE MATTER OF THE ADMINISTRATIVE  ADMINISTRATIVE REVIEW
          APPEAL OF                            DOCKET NO.: DG 210302 RO
                                                           
               University Towers Associates,   DISTRICT RENT ADMINISTRATOR
                                               DOCKET NO.: 041511
           
                                   PETITIONER               
          -----------------------------------X

                  ORDER AND OPINION REMANDING PROCEEDING ON APPEAL

          On July 20,  1989,  the  above  named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          July 3, 1989, by the District  Rent  Administrator,  92-31  Union
          Hall Street, Jamaica, New York, concerning housing accommodations 
          known as Apartment 4K, 122 Ashland  Place,  Brooklyn,  New  York,
          wherein the District Rent Administrator determined that the owner 
          had overcharged the tenant.

          The  issue  in  this  appeal  is  whether   the   District   Rent
          Administrator's order was warranted.

          The applicable sections of the law are Sections 2522.6 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 issue raised by the administrative appeal.

          This proceeding  was  commenced  on  December  17,  1984  by  the
          tenant's  filing  of  a  Tenant's  Objection   to   Rent/Services
          Registration wherein the tenant contended in substance  that  she
          was being overcharged; that a  stove,  refrigerator,  blinds  and
          shades were  services  which  were  omitted  from  the  apartment
          registration; that the building registration was not posted; that 
          the laundry room was not being maintained; that the building  was
          infested with vermin; and that the laundry room and extermination 
          services were omitted from the building services registration.

          On June 8, 1987 and August 21, 1987, the owner  was  served  with
          copies of the tenant's objection, but failed to submit an answer.

          On September 29, 1987, January 13, 1989 and March 10,  1989,  the
          owner was served with Final Notices of Pending Default  demanding
          complete copies of all leases  for  the  subject  apartment  from
          April 1, 1980 to date.

          On March 16, 1989, the owner submitted its answer to the tenant's 
          objection and contended in substance that the matter  of  a  rent
          overcharge was decided on December 12, 1986 under  Docket  Number
          ZAA-201065-R wherein it was determined that the  tenant  did  not
          file a timely objection to the 1984 apartment registration,  that






          DG 210302 RO
          therefore the registered rent became the initial legal registered 
          rent, that  no  overcharge  occurred,  and  that  the  Division's
          authority to regulate rents and adjudica e  complaints  was  pre-
          empted by the U.S. Department of Housing  and  Urban  Development
          (HUD) on October 17, 1985.  Unfortunately, the owner's answer was 
          received  by  the  Division,  but  was  never  delivered  to   or
          considered by the Administrator.

          On April 22, 1989 the owner was served with a  Notice  of  Treble
          Damages wherein the owner was informed  that  an  overcharge  did
          exist and that treble damages would be assessed.

          On May 22, 1989, another Final  Notice  of  Pending  Default  was
          served  upon  the  owner  along  with  a  request  for  proof  to
          substantiate the fact that the tenant had been served with a copy 
          of the 1984 apartment registration.  On June 1, 1989,  the  owner
          resubmitted its answer of March 16, 1989.  Again, this submission 
          was received by the Division,  but  was  never  delivered  to  or
          considered by the Administrator.

          In Docket Number 041511 issued July 3, 1989,  the  District  Rent
          Administrator determined that  the  tenant  had  filed  a  timely
          objection to the 1984 apartment registration, but that the  owner
          had failed to submit a complete rental history  for  the  subject
          apartment.   Accordingly,  the  Administrator   established   the
          tenant's lawful  stabilization  rent  as  $287.85  (the  tenant's
          initial rent minus a guidelines increase) and determined that the 
          tenant had been overcharged since September 1, 1983  a  total  of
          $9,163.56 which included excess security and  treble  damages  on
          that portion of the overcharge occurring on  or  after  April  1,
          1984.   The  Administrator  further  determined  that  the   1984
          apartment  registration  was  not  mailed  to  the  tenant  until
          February 19, 1985.  Finally, the  Administrator  determined  that
          the owner did provide the  services  of  a  stove,  refrigerator,
          shades and blinds due  to  the  owner's  failure  to  refute  the
          tenant's claim.

          In this petition,  the  owner  contends  in  substance  that  the
          District Rent Administrator's order is incorrect  and  should  be
          reversed  because  the  tenant's  original  complaint  was  never
          received as it was mailed to its former address,  the  owner  did
          not default in this proceeding as it submitted two answers during 
          the proceeding, and the same issue  was  raised  and  decided  on
          December 12, 1986 in Docket Number ZAA-201065-R.

          In response, the tenant contends in substance  that  the  owner's
          petition should be denied.

          The Commissioner is of the opinion that this proceeding  must  be
          remanded for further consideration.

          A review of the record in the instant  case  indicates  that  the
          owner submitted a copy of its answer on  two  separate  occasions
          during the proceeding before  the  Administrator.   Said  owner's
          answer relied totally on a previous order  of  the  Administrator
          (ZAA-201065-R) involving the subject premises  which  found  that
          the tenant had failed to file a  timely  objection  to  the  1984
          apartment registration and that no overcharge occurred.







          DG 210302 RO
          Based  on  the  foregoing,  the  Commissioner  finds   that   the
          Administrator incorrectly defaulted  the  owner  for  failing  to
          submit  an  answer.   The  Commissioner  also  finds   that   the
          Administrator  incorrectly  established  the  lawful  rents   and
          amounts of overcharge after October 17, 1985 which is the date on 
          which HUD pre-empted the jurisdiction of the Division to regulate 
          rents and adjudicate complaints involving the subject premises.

          The Commissioner further finds that the  order  of  the  District
          Rent Administrator which was issued on December  12,  1986  under
          Docket Number ZAA-201065-R is  incorrect  and  must  be  revoked.
          Said order erroneously concluded that the tenant  had  failed  to
          file a timely objection to the 1984 apartment registration.   The
          evidence of record indicates  that  the  tenant's  objection  was
          dated December 17, 1984 and postmarked December  19,  1984.   The
          1984 Apartment Registration (RR-1 Form) which  was  submitted  by
          the  owner  along  with  its  petition  states  that   the   said
          registration was prepared on  September  25,  1984.   Thus,  even
          assuming, arguendo, that the tenant  did  receive  the  apartment
          registration on September, 25, 1984, the tenant's  objection  was
          timely as it was filed on December  19,  1984  which  was  within
          ninety days  of  receipt  of  the  apartment  registration.   The
          Commissioner notes that the 1984 Apartment Registration  was  not
          mailed to the tenant until February 19, 1985.

          Accordingly, this proceeding must be remanded to  determined  the
          lawful stabilization rents and the amounts of overcharge, if any, 
          from the base rent date of April  1,  1980  through  October  16,
          1985.  It should be noted that the  owner  was  not  entitled  to
          demand or collect  any  rent  increase  from  April  1,  1984  to
          February 19, 1985 (the date the apartment registration was mailed 
          to the tenant).  All parties are  to  be  notified  and  given  a
          chance to submit evidence in such remanded proceeding.  The owner 
          should be directed to submit a complete rental  history  for  the
          subject apartment from the base rent date of April 1, 1980.

          THEREFORE, in accordance with  the  Rent  Stabilization  Law  and
          Code, it is

          ORDERED, that this petition be and the same hereby is granted  to
          the extent of remanding this  proceeding  to  the  District  Rent
          Administrator for further  processing  in  accordance  with  this
          order and  opinion.   The  automatic  stay  of  so  much  of  the
          District Rent Administrator's  order  as  directed  a  refund  is
          hereby continued  until  a  new  order  is  issued  upon  remand.
          However, the Administrator's determination as to the rent is  not
          stayed and shall remain in  effect,  except  for  any  adjustment
          pursuant to lease renewals, until the Administrator issues a  new
          Order upon remand.  The Administrator's order which was issued on 
          December 12, 1986 under  Docket  Number  ZAA-201065-R  is  hereby
          revoked.

          ISSUED:

                                                                           
                                                       ELLIOT SANDER
                                                       Deputy Commissioner

    

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