HF210199RO
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. HF210199RO
STANLEY REIFER
: DRO DOCKET NO. CA210329R
PETITIONER : TENANT: PATRICIA ROBERTSON
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On May 27, 1993, the above-named petitioner-owner pursuant to
a court stipulation was considered to have timely refiled a Petition
for Administrative Review against an order issued on September 20,
1991, by the Rent Administrator, 92-31 Union Hall Street, Jamaica,
New York, concerning the housing accommodations
known as 555 Ocean Avenue, Brooklyn, New York, Apartment No. 3G,
wherein the Administrator determined that the owner had overcharged
the tenant.
The Administrative Appeal is being determined pursuant to the
provisions of the Rent Stabilization Law and 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 commenced on January 21, 1988 when the
tenant filed a rent overcharge complaint. The tenant asserted that
she had taken occupancy in November 1980 pursuant to a two year
lease at a monthly rent of $249.00 and that the owner had increased
the rent to $455.00 in June 1986 based upon Major Capital
Improvements.
In response to the complaint, the owner indicated that pursuant
to Section 602 of the Private Housing Finance Law, the subject
building had been completely rehabilitated and the rents had been
restructured.
In the order herein appealed, based upon the rent history
without consideration of the claimed restructuring, the
Administrator determined that the tenant had been overcharged and
set the legal stabilized rent at $339.77 effective June 1, 1989, as
well as directing the owner to refund overcharges of $27,361.56
HF210199RO
inclusive of treble damages and excess security.
In this appeal, the owner bases the request that the order be
reversed on the rehabilitation of the entire building under the U.S.
Department of Housing and Urban Development's (HUD's) Section 8
Moderate Rehabilitation Program as administered by the New York City
Department of Housing Preservation and Development (HPD)
and financed by the New York State Housing Finance Agency and the
New York City Participation Loan Program. Said rehabilitation was
completed in the spring of 1986 and in June 1986, HPD issued orders
restructuring the rent for all apartments in the building (84) which
had undergone rehabilitation work subject to the availability of
Section 8 housing assistance payments for all income eligible
tenants; new leases were executed accounting for the revised rent.
The rent of the instant apartment was established at $455.00 by HPD
but the tenant was ineligible for assistance because the family's
income exceeded the allowed maximum. All subsequent renewal leases
have been in accordance with applicable guidelines. The owner
submitted a copy of Order and Report Of Setting Of Initial Regulated
(Stabilized) Rent And Services issued by HPD on May 30, l986.
Although afforded the opportunity to do so, the tenant did not
reply to the petition.
The Commissioner is of the opinion that this petition should
be granted.
The evidence of record shows conclusively that the rent
increase taken by the owner was in conformance with Section
2522.4(f) of the Rent Stabilization Code and that there was no
overcharge. Accordingly, the Administrator's order should be
revoked.
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.
ISSUED
JOSEPH A. D'AGOSTA
Deputy Commissioner
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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.
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