AI 210197 RO
                                      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
          APPEAL OF                              DOCKET NO.: AI 210197 RO

                                                 DISTRICT RENT OFFICE
               David Realty Company,             DOCKET NO.: K-003813-R

           
                                   PETITIONER    
          ------------------------------------X 


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                       IN PART

          On September 29, 1986, the above-named owner filed a Petition for 
          Administrative Review against an order issued  on  September  22,
          1986, by the Rent Administrator, Jamaica,  New  York,  concerning
          the  housing  accommodations  known  as   3028  Nostrand  Avenue,
          Brooklyn,  New  York,  Apartment  No.  1-O,  wherein   the   Rent
          Administrator determined  that  the  owner  had  overcharged  the
          tenant.

          The tenant originally  commenced  this  proceeding  by  filing  a
          complaint of rent overcharge.  In response the owner  (a)  stated
          inter alia that there  had  been  no  timely  objection,  despite
          service on the tenant, to an  "RR-2"  form  that  the  owner  had
          filed, so that the complaint should have been dismissed, and  (b)
          submitted copies  of  bills  for  various  kitchen  and  bathroom
          improvements.

          In the order docketed at  number  K-003813-R,  the  Administrator
          established the lawful stabilized rent at $362.01 monthly through 
          September  30,  1986,  determined  that  the  tenant   had   been
          overcharged  and  directed  a  refund  of  $1,753.26,   including
          interest on overcharges collected on and after April 1, 1984.

          In this petition, the owner asserts in pertinent part:  that  the
          order should be reversed because the  form  RR-1  served  on  the
          tenant on July 2, 1984, stating that his rent  was  $428.82,  was
          not challenged within 90 days; that the Administrator erroneously 
          failed to give credit for a new bathroom sink  and  "vanity"  and
          kitchen cabinets along with  installation  costs;  and  that  the
          Administrator had erred in omitting a "vacancy" rental increase.
          The tenant responds that the costs listed for the  aforementioned
          improvements are  excessive  and  that  no  additional  cost  was
          incurred in installing them.

          The record indicates  that  the  tenants  later  moved  from  the
          subject apartment.

          The Commissioner is of the opinion that the  petition  should  be
          granted in part.






          AI 210197 RO

          The Administrator's order here appealed  concludes  that  because
          the tenant did not file  a  timely  objection  to  the  Apartment
          Registration, the rent as of April 1, 1984,  registered  therein,
          is the Initial Legal Registered Rent.  In so concluding the order 
          comports with applicable law.  Petitioner's  position,  that  the
          higher rent listed on the same Registration as "effective on 
          May 1, 1984" be used as the base rent, conflicts  with  the  rule
          that the rent as of April 1, 1984, be used.  

          Turning to the question  of  the  vacancy  rental  increase,  the
          owner's position is that it was entitled to a 10% increase  under
          Rent Guidelines Order Number 15, "which states that the  landlord
          is entitled to [same] if the prior tenant took occupancy  of  the
          apartment between July, 1975 and June 30, 1979.  The prior tenant 
          herein took occupancy on May 27, 1977. . . . "

          It must here be noted that early in these proceedings  the  owner
          had justifiably refused (for  a  reason  not  relevant  here)  to
          submit copies of all leases entered into  since  June  30,  1975.
          The record therefore contained no documentation of when the prior 
          tenant took occupancy.  After  the  instant  petition  made  that
          question relevant, however,  the  Commissioner  once  more  asked
          petitioner  to  document  the  rental   history   herein,   which
          petitioner has done starting with August 1, 1977.  

          Guidelines Board Order 15 provides for a 10% vacancy increase for 
          units as to which vacancy allowance were last charged under Board 
          orders governing new tenancies period from July 1, 1975,  through
          June 30, 1979.  The history now in the record  does  substantiate
          petitioner's claim that the previous lease had commenced in 1977, 
          thus justifying a vacancy increase under that order.  The  lawful
          stabilization rent for the lease that commenced on May  1,  1984,
          must therefore be increased by 14% (4% + 10%  vacancy  allowance)
          over the previous lawful rent of $309.17, resulting in a rent  of
          $352.45.  

          Turning next to  the  question  of  improvements,  the  owner  is
          correct in its contention that it submitted documentary  evidence
          showing it spent $25.00 for a "vanity" and  $1,883.25  (including
          tax) for kitchen "cabinets and tops."  Their sum will be  divided
          by 40 pursuant to the Code, and the quotient,  $47.72,  added  to
          the lawful stabilized rent ($352.45) for the lease commencing  on
          May 1, 1984,  plus the previously  allowed  $19.98  for  the  new
          refrigerator and stove, yielding a lawful rental of  $420.15  for
          the prior tenant.

          Applying the Guidelines 16 increase of 6% that the  Administrator
          has employed to determine the initial rent of the tenant  herein,
          yields a figure of $445.36 effective May 1, 1985, instead of  the
          $362.01 previously determined,  resulting  in  an  overcharge  of
          $454.00 (the rent charged) minus $445.36,  times  17  months,  or
          $146.88.   Adding interest of $9.90 and excess security deposited 
          of $8.64 yields a refundable total of $165.42.  The  lawful  rent
          as of June 30, 1986 is, as stated above, $445.36.

          Because this determination concerns  lawful  rents  only  through
          June 30, 1986, the owner is cautioned to adjust subsequent  rents
          to an  amount  no  greater  than  that  determined  by  the  Rent






          AI 210197 RO
          Administrator's order plus any lawful increases, and to  register
          any adjusted rents, with this order and opinion  being  given  as
          the explanation for the adjustment.

          This order may, upon the expiration of the period  in  which  the
          owner may institute a proceeding pursuant to Article  78  of  the
          Civil Practice Law and Rules, be filed and enforced in  the  same
          manner as a judgment, or not in  excess  of  twenty  percent  per
          month thereof may be offset against any rent thereafter  due  the
          owner.

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

          ORDERED, that this petition be, and the same hereby  is,  granted
          to the extent of modifying the Rent Administrator's order as  set
          forth above.

          ISSUED:



                                                                      
                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner




                     



































          AI 210197 RO


    

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