In the Matter of Grimm v. State of New York Division of Housing and Community Renewal, 2007 NY Slip Op 34184(U) (N.Y. Sup. Ct. 12/13/2007)
| Decision Date | 13 December 2007 |
| Docket Number | 0105441/2007. |
| Citation | 2007 NY Slip Op 34184 |
| Parties | IN THE MATTER OF THE APPLICATION OF SYLVIE GRIMM, Petitioner, For a Judgment Pursuant to Article 78 of the Civil Practice Law and Rules v. STATE OF NEW YORK DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION, Respondent, 151 OWNERS CORP., Intervening-Respondent. |
| Court | New York Supreme Court |
In this Article 78 proceeding, petitioner, a rent stabilized tenant, challenges a February 21, 2007 determination of respondent Division of Housing and Community Renewal ("Determination"), which denied the tenant's Petition for Administrative Review ("PAR"). The Determination adhered to the June 21, 2006 determination of the Rent Administrator ("RA Decision"), which denied petitioner's rent overcharge complaint. Petitioner filed the overcharge complaint on July 19, 2005.
Petitioner entered into possession of apartment 7 ("Apartment") in the building located at 151 Ludlow Street, New York, NY ("Building"), under a one-year lease commencing April 1 2004 at a monthly rental of $1,450.00. Ownership of the Building was transferred to the current owner, Intervening-Respondent, 150 Owners Corp., in October of 2004. Petitioner's rent was increased to $1,500.75 upon the expiration of her initial lease.
The current owner admits that the prior owner of the Building "failed to file registrations for several years." When the current owner bought the Building, the last registration statement for the Apartment, which was tiled in 1999 ("1999 Registration"), contained a legal regulated rent of $578.96 and listed the Apartment as rent stabilized. Administrative Return A-8, Exh. Subsequently, the current owner filed annual registrations for the years 2001 through 2005.
The tenants in occupancy of the Apartment immediately preceding petitioner, were Tracy Hartman and John Bozak. They lived in the Apartment from April 2000 through March 2004. Their initial monthly rent was $1,450.00. According to Mr. Bozak's affidavit, which was submitted to the Rent Administrator, the prior owner did not give him a rent stabilized lease rider, never provided him with annual registration statements and did not explain how their initial monthly rent was calculated. Administrative Return A-22, Exh. E. An affidavit submitted by Ms. Hartman confirmed that the rent for the Apartment was $1,450 during her tenancy. Administrative Return A-19, Exh. B.
The Determination and the RA Decision were based strictly upon the 2001 registration statement. The Determination cited §2526.1(a)(2) of the Rent Stabilization Code, which provides as follows:
... no determination of an overcharge and no award or calculation of an award of the amount of an overcharge may be based upon an overcharge having occurred more than four years before the complaint is filed; additionally (ii) the rental history of the housing accommodation prior to the four-year period preceding the filing of a complaint pursuant to this section, and section 2522.3 of this Title, shall not be examined.
9 NYCRR §2526.1; see also C.P.L.R. §213-a.
The base date in this case was July 19, 2001, four years prior to the filing of the overcharge complaint. Neither the Determination nor the RA Decision specifically rejected petitioner's claim that there was evidence of fraud. Rather, the Determination reasoned that because the prior tenants actually resided in the Apartment, there wag no illusory tenancy. Hence, neither the Determination nor the RA Decision discussed whether petitioner's evidence demonstrated that the registration statement in effect on the base date was unreliable, i.e. that the rent for the...
To continue reading
Request your trial