ADM. APPEAL DOCKET NO.: DI230066RO
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 APPEAL
APPEAL OF DOCKET NO.: DI230066RO
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On September 1, 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 August 14, 1989
by the Rent Administrator of the Gertz Plaza, Jamaica, New York
Rent Office, concerning the housing accommodation known as 8001 Bay
Parkway, Various Apts., Brooklyn, New York.
The issue in this proceeding is whether Fuel Cost Adjustments
should have been suspended for the calendar year 1986.
The Rent Administrator's order appealed herein suspended all
fuel cost adjustments for the period January 1, 1986 through
December 31, 1986.
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
Brooklyn Union "Interruptible" Gas.
On appeal the landlord states, in substance, that the building
was purchased by the present owners in April 1986. The present
owners did not charge the tenants fuel charges for 1986 through
1988. Therefore no filings were necessary.
After a careful consideration of the entire evidence of record
the Commissioner is of the opinion that the administrative appeal
should be denied.
ADM. APPEAL DOCKET NO.: DI230066RO
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
In early 1986, a finding was promulgated that the price of
Brooklyn Union "Interruptible" Gas had declined during 1985. The
subject landlord was required to file and serve fuel cost decrease
reports on or before May 14, 1986. It is undisputed that no such
filing took place. The Suspension Procedure is initiated by the
Division whenever an owner fails to timely file a notice of Fuel
decrease. Furthermore, a new owner is obligated to refund a fuel
cost adjustment even if the failure to file was the fault of a
prior owner and the suspended fuel cost adjustment had been
collected by a prior owner.
The Commissioner notes that the Administrator's order required
the landlord to refund money to the tenant only if a Fuel Cost
adjustment increase was actually collected. The Commissioner
further notes that it is implied in the Administrator's order that
if the owner did not collect any fuel cost adjustment for the
period covered by the order then no refund by the owner was
required by the order. Accordingly, the owner was not adversely
affected by the Administrator's order if it is true that no Fuel
Cost Adjustments were collected for the year in question.
A review of the record reveals that the owner did in fact file
the 1988 Fuel Cost report along with Schedule A which indicates
more than one type of fuel was delivered during that period.
Accordingly, the Commissioner is of the opinion the Rent
Administrator correctly suspended Fuel Cost Adjustments for the
calendar year 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.
JOSEPH A. D'AGOSTA