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
          APPEALS OF                             DOCKET NO.FF110654RT
                                              :            DA110057RT
                                                 DRO DOCKET NO.ZDA110345R
               HILARIO GONZALEZ                                ZBB110021R

                                PETITIONER    : 
          ------------------------------------X                             
            ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW


               On July 5, 1991, the above-named petitioner-tenant timely 
          refiled a Petition for Administrative Review against an order issued 
          on April 12, 1991, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 3407 36 Avenue, Queens, New York, Apartment No. 2B wherein 
          the Rent Administrator determined that the initial stabilized rent 
          of $425.00 was not subject to challenge.  On January 10, 1989, the 
          above-named petitioner-tenant filed a Petition for Administrative 
          Review against an order issued on December 23, 1988, by the Rent 
          Administrator, 92-31 Union Hall Street, Jamaica, New York, 
          concerning the aforementioned housing accommodations wherein the 
          Rent Administrator determined that the initial stabilized rent was 
          $425.00 per month.  These petitions are being consolidated for 
          disposition herein.

               The Administrative Appeals are being determined pursuant to the 
          provisions of Section 2520.11(c) of the Rent Stabilization Code and 
          Article 15 of the Private Housing Finance Law.

               The issue herein is whether the Rent Administrator's orders 
          were 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 appeals.  

               These proceedings were initiated when the tenant filed a rent 
          overcharge complaint in February, 1987 under docket BB110021R.  In 
          such complaint, the tenant stated in substance that he first moved 
          to the subject apartment in July 1972 at a rental of $100.00 per 
          month and that the rent was raised to $250.00 per month as of 
          February 1982 and that the owner is now asking $425.00 per month due 
          to a building rehabilitation.  The tenant further stated that the 
          rent should have been limited to $83.91 per month effective March 
          29, 1976 pursuant to a request for registration information answered 
          by the Office of Rent Control under docket number AD029951.

               In response to the tenant's complaint, the owner stated in 









          FF110654RT, DA110057RT



          substance that the rent was set in accordance with an order issued 
          on January 5, 1987  by the Department of Housing Preservation and 
          Development which set the rent at $425.00 effective January 1, 1987 
          and found that the subject apartment was subject to the Rent 
          Stabilization Law and Code effective January 1, 1987 pursuant to a 
          rehabilitation of the premises under Article 15 of the Private 
          Housing Finance Law.  In support of such contention, the owner 
          submitted a copy of the January 5, 1987 order.

               In the order issued under docket number ZBB110021R, the Rent 
          Administrator found that the Department of Housing Preservation and 
          Development had set the rent at $425.00 per month and that any 
          inquiries or complaints concerning such rent should be directed to 
          said Department.

               In the petition filed under docket number DA110057RT, the 
          tenant alleges in substance that he was willfully overcharged prior 
          to January 1, 1981 and up through December 1986 and that he is 
          requesting treble damages.

               On January 16, 1989 the tenant filed another rent overcharge 
          complaint under docket number DA110345R stating in substance that 
          his lawful rent should be $83.91 and he is being overcharged.  In 
          response, the owner again submitted a copy of the January 5, 1987 
          order issued by the Department of Housing Preservation and 
          Development which set the rent at $425.00 per month.   

               In the order issued under docket number ZDA110345R, the Rent 
          Administrator determined that pursuant to the order of the 
          Department of Housing Preservation and Development, the subject 
          apartment was no longer subject to rent control and that the initial 
          stabilized rent of $425.00 is not subject to challenge.     

               In the petition filed under docket number FF110654RT, the 
          tenant alleges in substance that the rehabilitation work was never 
          completed in the subject apartment and therefore the subject 
          apartment should not have become rent stabilized.

               In response to the tenant's petition, the owner stated in 
          substance that all repairs required to be made had been made.

               The Commissioner is of the opinion that these petitions should 
          be denied.

               Section 2520.11(c) of the Rent Stabilization Code provides in 
          pertinent part that housing accommodations for which rentals are 
          fixed by the DHCR or HPD and after the establishment of initial 
          rents, the housing accommodations are made subject to the Rent 
          Stabilization Law pursuant to applicable law are subject to the Rent 
          Stabilization Law and Code.

               In the instant case the order of the Department of Housing 
          Preservation and Development stated that by operation of law the 






          FF110654RT, DA110057RT


          subject apartment was no longer subject to rent control but was rent 
          stabilized as of January 1, 1987 and set the rent of the subject 
          apartment at $425.00 effective as of January 1, 1987  due to a 
          rehabilitation of the subject premises under Article 15 of the 
          Private Housing Finance Law.  Therefore the subject apartment became 
          rent stabilized as of January 1, 1987 pursuant to the provisions of 
          the Private Housing Finance Law and Section 2520.11 of the Rent 
          Stabilization Code.  The proper remedy of the tenant who disagreed 
          with the  Department of Housing Preservation and Development order 
          was to have appealed it directly and not to file an overcharge 
          complaint with the DHCR which lacks jurisdiction to overturn such 
          order.  Further with regard to the tenant's contentions that he was 
          overcharged when the apartment was subject to rent control, the 
          tenant's remedy was to take a timely action in a court of competent 
          jurisdiction regarding such rent controlled overcharge.  
          Accordingly, the Rent Administrator's orders were correct and must 
          be affirmed.

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

               ORDERED, that these petitions for administrative review be, and 
          the same hereby are, denied, and, that the orders of the Rent 
          Administrator be, and the same hereby are, affirmed.

          ISSUED



                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner






                     

























          FF110654RT, DA110057RT













    

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