STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:
DRO DOCKET NO.:
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
AND MODIFYING ADMINISTRATOR'S ORDER
On October 27, 1986, the above named petitioner-owner filed a
Petition for Administrative Review against an order of the Rent
Administrator issued October 15, 1986. The order concerned
housing accommodations known as Apartment 5-D at 252 South 4th
Street, Brooklyn, New York. The Administrator denied the ten-
ant's rent overcharge complaint.
The Commissioner has reviewed the record and has carefully
con-sidered the evidence relevant to the issues raised by this
The tenant commenced this proceeding by the filing of a rent
overcharge complaint. The owner duly answered and supplied the
proper rent history. The Administrator determined that the
initial legal regulated rent was $268.00 as of April 1, 1984. The
Administrator further found that the rent was lawfully increased
to $317.55 by the application of two Rent Guideline Board
increases and the addition of a Major Capital Improvement (MCI)
rent increase ordered in (Docket No. OM 005924).
On appeal, the owner takes issue with the method by which the
Administrator found that the initial legal regulated rent had
been increased. While agreeing that the tenant was properly
charged $317.55 on January 26, 1986, the owner argues that the
MCI increase described above should not have been used in making
that calculation. Petitioner contends that the MCI increase was
to be added to the $317.55 rent at a later time. The tenant
filed no response.
After a careful review of the evidence in the record the
Com-missioner grants the petition to the extent of modifying the
A check of DHCR records reveals that petitioner is correct in his
assertion that the Administrator erred in including the MCI
cal-culation in increasing the initial legal regulated rent. The
MCI increase order was issued on November 29, 1985, after the
owner and tenant entered into a renewal lease for the two-year
term commencing January 1, 1986, at a monthly rent of $317.55.
That amount represents a lawful increase of 6% over the April 1,
1984 registered rent of $268.00 for the one-year lease commencing
January 1, 1985, ($284.08) plus a 6 1/2% increase for the
two-year renewal commencing January 1, 1986, plus a $15.00 rent
The tenants took occupancy pursuant to a one-year lease com-
mencing February 1, 1985 and expiring January 31, 1986, at a
monthly rent of $320.00.
The owner was served with a copy of the complaint and was re-
quested to submit rent records to prove the lawfulness of the
rent being charged.
The owner had registered the April 1, 1984 rent of $275.00 with
the DHCR. This was established as the Initial Legal Registered
Rent, in accordance with Section 2521.1(c) of the current Rent
Stabilization Code. The MCI rent increase is in addition to the
$317.55. The Administrator's order is, therefore modified to so
reflect. In all other respects that order is affirmed.
THEREFORE, pursuant to 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 Administrator's order in a manner
consistent with this order and opinion. In all other respects
that order is hereby affirmed.