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. FJ110174RO
: DRO DOCKET NO.ZCG110024R
PARK ESTATES TENANT: EDA WILLIAMS
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On October 21, 1991, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
September 19, 1991, by the Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York, concerning the housing accommodations
known as 109-15 Merrick Blvd., Jamaica, New York, Apartment No. 2L,
wherein the Rent Administrator determined that the owner had
overcharged the tenant.
The Administrative Appeal is being determined pursuant to the
provisions of Sections 2520.11 and 2521.1(c)(2) of the Rent
Stabilization Code.
The issue herein is whether the Rent Administrator's order was
warranted.
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 originally commenced by the filing in June,
1988, of a rent overcharge complaint by the tenant who first moved
to the subject apartment on August 15, 1981. In her complaint, the
tenant stated in substance that the overcharge began on November 1,
1987.
In the order hereunder appeal, the Rent Administrator
determined that the owner failed to register the subject apartment
in the years 1984, 1986 and 1987 and also failed to submit a rental
history from April 1, 1980. Based thereon, the Rent Administrator
determined that the owner had willfully overcharged the tenant and
found a rent overcharge totalling $39,160.98.
In this petition, the owner alleges in substance that there is
no overcharge in that the subject building was owned by the United
States Department of Housing and Urban Development (hereafter HUD),
until March 23, 1988 when the owner herein acquired possession; that
during this period the building was not subject to rent
stabilization; and that HUD set the rent at $500.00 per month so
that the owner herein did not overcharge the tenant. In support of
FJ110174RO
such contentions, the owner submitted a copy of the deed wherein it
acquired ownership of the subject building from HUD on March 23,
1988, and a copy of the HUD document previously setting the contract
rent at $500.00 per month (although the lease showed HUD was
charging less than $500.00 per month).
The Commissioner is of the opinion that this petition should be
granted.
Section 2520.11 of the Rent Stabilization Code exempts from the
jurisdiction of the Code housing accommodations owned, operated or
leased by the United States, the State of New York, any political
subdivision, agency or instrumentality thereof, any municipality or
any public housing authority.
Section 2521.1(c)(2) of the Rent Stabilization Code provides in
pertinent part that the initial legal registered rent for those
housing accommodations not required to be registered by June 30,
1984, shall be the rent charged and paid on the date the housing
accommodation became subject to the registration requirements.
In the instant case, the evidence of record discloses that
prior to March 23, 1988, the subject building was owned and operated
by HUD. Therefore, pursuant to Section 2520.11, the subject
apartment was not subject to Rent Stabilization and not required to
be registered with DHCR during this period. The record further
discloses that the last rent charged the tenant under HUD was
$420.00 per month and that the owner herein lawfully increased the
rent pursuant to the appropriate guidelines then in effect to
$447.30 effective May 1, 1988 and $471.00 effective May 1, 1990 upon
lease renewal. Accordingly, no rent overcharge occurred.
If the owner has already complied with the Rent Administrator's
order and there are arrears due to the owner as a result of the
instant determination, the tenant is permitted to pay off the
arrears in 24 equal monthly installments. Should the tenant vacate
after the issuance of this order or have already vacated, said
arrears shall be payable immediately.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that this petition for administrative review be, and
the same hereby is, granted, and, that the order of the Rent
Administrator be, and the same hereby is, revoked, and it is found
that no rent overcharge occurred.
ISSUED
JOSEPH A. D'AGOSTA
Deputy Commissioner
FJ110174RO
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