ADM. APPEAL DOCKET NO.: DA130111RO
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 APPEAL
APPEAL OF DOCKET NO.: DA130111RO
DISTRICT RENT
ADMINISTRATOR'S DOCKET
NO.: QC850935FR
FRITZ GUELLY
PETITIONER
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On January 3, 1989 the above named petitioner-landlord filed
an appeal in accordance with the applicable provisions of the City
Rent Law and Regulations against an order issued on December 22,
1988 by the Rent Administrator of the Gertz Plaza, Jamaica, New
York Rent Office, concerning the housing accommodation known as 22-
03 Harman Street, Apts. B1, B2, C1, C2, Brooklyn, New York.
The issue in this proceeding is whether Fuel Cost Adjustments
should have been suspended for the calendar year 1985.
The Rent Administrator's order appealed herein suspended all
fuel cost adjustments for the period January 1, 1985 through
December 31, 1985.
This order was based upon a finding that the owner of the
subject building had previously obtained allowable fuel cost
adjustments and failed to timely serve and file the required report
of fuel cost decrease by reason of a decrease in the price of #2
oil during the calendar year 1984.
On appeal, the landlord states, in substance, that he took
title of the subject building in January 1987. In addition the
owner states the Order of Suspension and Revocation of Fuel Cost
Adjustment goes back to 1985. This is just completely unreasonable
and unacceptable.
9 NYCRR 2202.13 provides that where a landlord has obtained
fuel cost adjustments and then there is a finding of fuel price
decrease, within 60 days of the promulgation of the finding on fuel
prices, the landlord must serve and file a report of fuel price
decrease.
ADM. APPEAL DOCKET NO.: DA130111RO
In early 1985, a finding was promulgated that the price of #2
fuel oil had declined during 1984. The then-current landlord was
required to file and serve fuel cost decrease reports on or before
May 15, 1985.
In this matter it is undisputed that a "Landlord's Report,
Certification and Notice of Fuel Cost Adjustment Eligibility-1985"
was not served on the tenants or received by the Rent Office on or
before May 15, 1985.
The Commissioner is of the opinion the Rent Administrator
correctly suspended Fuel Cost Adjustments for the calendar year
1985.
The Commissioner finds that the fact that the owner had
acquired the subject building in 1987 does not excuse him from
following the Administrator's determination because a new owner is
required pursuant to 9 NYCRR 2202.24(b) to refund or credit any
Fuel Cost allowance increase paid by the subject tenant(s). In
general, a new owner takes a building subject to the obligations of
the prior owner. This Order is without prejudice to the present
landlord's right to proceed against the prior landlord in a court
of competent jurisdiction.
The record shows that Fuel Cost increases were taken in 1980
through 1982 presumably by the prior owner. Unless the current
owner deducted the 1985 Fuel Cost Adjustment (FCA) previously the
current owner is obligated to now make the refund and reduction
ordered by the Administrator. The Commissioner notes that the
order under review only required the refund of the 1985 FCA.
Subsequent years were not effected by the order under review, which
explicitly reinstated the FCA as of January 1, 1986.
THEREFORE, in accordance with the applicable provisions of the
Rent and Eviction Regulations for New York City, it is
ORDERED, that this administrative appeal be, and the same
hereby is, denied, and that the order of the Rent Administrator be,
and the same hereby is, affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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