Opinion ID: 2350495
Heading Depth: 1
Heading Rank: 10

Heading: Year from which the base rent levels were drawn

Text: Temple first argues that the use of 1973 as the relevant year in determining the base rent was erroneous. He contends that his occupancy of one of the units in the five-unit building exempted the building from registration until 1977 when he moved out. Id. § 45-1516(a)(3) (exempting any rental unit in any housing accommodation of four or fewer units.) Thus, the base rent figure used in the damage computation should have been drawn from 1977 rent levels. In its final decisions of July 18, 1985, the agency rejected this contention on the merits. It determined that Temple's ownership of five rental units rendered him ineligible for the small landlord exemption regardless of his occupancy of one of the units. This court has had occasion to address the small landlord exemption. Revithes v. District of Columbia Rental Housing Commission, 536 A.2d 1007 (D.C. 1987). We stated: [t]here is no question that a unit occupied by an owner is not `rented or offered for rent' and thus cannot be included in the aggregate number of units under the control of an owner for so long as the owner occupies the unit. At 1017, n. 25 (citing the definition of rental unit at D.C.Code § 45-1681(w) (1979 Supp.)). Since, in Temple's case, the agency invalidated Temple's claim of exemption based solely on its erroneous interpretation of the small landlord exemption, the ruling was wrong as a matter of law. The District and intervenors argue, however, that several other grounds support the agency's determination not to grant Temple an exemption. First, they argue that under the 1975 Act as originally passed, only a rental unit rented by the occupant of a housing accommodation of not more than two rental units was exempt. D.C.Code § 45-1642(a)(5) (1976 Supp.). Since Temple's building contained more than two rental units, they argue that Temple was not exempt under the 1975 Act as originally enacted and thus cannot claim an exemption now. [12] Second, they rely on Temple's failure to file a Claim of Exemption Statement. D.C. Code § 45-1516(a)(3) (1981); Act of November 10, 1976, D.C. Act 1-173, § 2(e), 23 D.C.Reg. 3608, 3611) (landlords were first required to file a Claim of Exemption Statement under this emergency act). Third, they argue that even if the four or fewer units cut-off point is applied retroactively to Temple's claim, and even if Temple's failure to file a Claim of Exemption Statement in 1976 does not thereby render him subject to the Rent Stabilization Program at that time, Temple still failed to prove by credible evidence that he occupied one of the units in the building during the relevant period. [13] Finally, they argue that evidence of Temple's ownership of more than his property at 216 Third St., S.E., defeats his claim on the merits. The agency, however, did not rely on these numerous grounds in rejecting Temple's claim of exemption. It never addressed the applicability of the 1975 Act as originally enacted nor did it review the evidence to determine whether, on the merits, Temple was still not exempt. Furthermore, in only one of its decisions did it allude to Temple's failure to file a Claim of Exemption Statement: Landlord filed no claim of exemption nor took any steps to perfect his entitlement. Even assuming that the agency was not enforcing this provision of the Act, the landlord's appeal must still fail [because an owner-occupied unit is counted in determining aggregate number]. RHC Decision of August 4, 1984 (emphasis added). Given the ambiguity of such a statement, Temple's failure to file a Claim of Exemption Statement can hardly be characterized as a ground of the agency's decision not to grant him an exemption. Indeed, it is clear to this court that the agency's decision was based solely on its erroneous determination that an owner-occupied unit is to be counted in determining the aggregate number of units for purposes of the small landlord exemption. Under the circumstances of this case, we decline to rely on grounds not relied upon by the agency in making its determination. Jones v. District of Columbia Department of Employment Services, 519 A.2d 704, 709 (D.C.1987) ([a]n administrative order can only be sustained on the ground relied on by the agency). In light of the complexity involved in the questions of whether the original 1975 small landlord exemption has any applicability to a petition filed under the 1980 Act, and whether, pursuant to a petition filed under the 1980 Act, a landlord should be procedurally disqualified from exemption because he failed to file a Claim of Exemption Statement in 1976, the agency must, in the first instance, rely on those grounds to support its decision. We, therefore, remand this case for the taking of further evidence on Temple's claim of exemption prior to 1977. Of course, the burden is on Temple to prove by credible, reliable evidence his entitlement to exemption, Bernstein v. Lime, 91 A.2d 841, 843 (D.C.1952), and to prove by like evidence the period over which that entitlement extended. The intervenors, of course, are not barred from raising their other legal and factual arguments before the agency at that time. [14] 2.