FB210184RO
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.: FB210184RO
Aaron Elkind, DRO DOCKET NO.: CA210435R
TENANT: Corrine Joseph
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On February 7, 1991, the above-named petitioner-owner filed a Petition
for Administrative Review against an order issued on January 24, 1991,
by the Rent Administrator, 92-31 Union Hall Street, Jamaica, New York,
concerning the housing accommodations known as 1281 Union Street
Apartment 1D, Brooklyn, New York, wherein it was determined that the
owner had overcharged the tenant.
The Administrative Appeal is being determined pursuant to the provisions
of Section 2526.1 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 tenant's filing of a
rent overcharge complaint on January 28, 1988. The tenant had assumed
occupancy on July 15, 1983 pursuant to a three year lease at a monthly
rent of $450.00. The tenant stated in the complaint that she received
a copy of the initial registration (RR-1) in 1984, and did not file an
objection within 90 days. In answer to the complaint, the owner
submitted a complete lease history since the base date.
In Order Number CA210435R, the Rent Administrator determined that the
tenant had been overcharged in the amount of $3,130.01, including excess
security and treble damages for overcharges collected on and after April
1, 1984.
In its petition the owner contends that the Administrator enoneously
deducted a permanent MCI increase that was granted by the DHCR in M.C.I
Order No. OM-5313, which deduction resulted in all determined
overcharges.
The Commissioner is of the opinion that this petition should be granted.
An examination of the record establishes that the Administrator failed
to timely compute a permanent M.C.I. increase of $27.00 per month, and
FB210184RO
mistakenly determined an overcharge because the increase was omitted
from the base rent before calculating the lawful rent for the lease term
commencing on August 1, 1986, under Guidelines 17. Overcharges were
subsequently increased in the next two lease terms.
The lawful rent on July 31, 1986 is $479.88, which is calculated as
follows:
$450.00 lease rent on April 1, 1984
+
$ 2.88 (0.95% of April 1983 rent of $302.89 permanent increase of
#OM-4782, effective April 1985)
+
$ 27.00 (6% of November 1983 rent of $450.00 permanent increase of
#OM-5313 effective January, 1986)
The lawful rent for the two year lease term commencing on August 1, 1986
is calculated as follows:
Guideline #17: July 31, 1986 rent of $479.88 per month
increased by 6«% guideline increase for a two year renewal
lease = $511.07.
All overcharges are thus eliminated for the period under review in the
subject order.
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, 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
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