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.: AK 610175-RO
                                         :  (REFILE OF ARL 07767-B)
                                            DRO DOCKET NO.: TA 11122/CTA 0275
         ANTHONY MCGARRY,                                   AS AMENDED
                           PETITIONER    : 
     ------------------------------------X                             

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     The  abovenamed  petitioner  owner   timely   refiled   a   Petition   for
     Administrative Review against an order issued on July 19, 1985 by the Rent 
     Administrator  of  the  then  World  Trade  Center  District  Rent  Office
     concerning the housing accommodations known  as  265  East  237th  Street,
     Basement Apartment, Bronx.

     The (now former) tenant, Richard Donahue, filed a fair market rent  appeal
     on March 4, 1983 alleging that he had taken occupancy a September 15, 1982 
     under a 2 & 1/2 year lease at a rent of $325.00.

     The tenant, along with his fair market rent appeal, submitted a copy of  a
     lease with the prior tenant, Edwin Shipp, from January 1 to  December  31,
     1982 at a rent of $225.00.

     The herein appealed order of the Rent  Administrator  established  a  fair
     market rent of $178.88 and directed a refund of $5,011.93 in  excess  rent
     through June 14, 1985.

     The owner has alleged throughout this  proceeding  that  he  acquired  the
     building in 1977; that  he  was  advised  by  the  prior  owner  that  the
     abovenoted Edwin Shipp took occupancy sometime in 1972 as  a  decontrolled
     tenant; that he and Mr. Shipp entered into a lease from January 1, 1978 to 
     December 31, 1979 at a rent of $190.00 (no  copy  submitted)  and  another
     lease from January 1, 1980 to April 30, 1982 at a rent of $225.00 (also no 
     copy submitted); that the apartment was vacant from May 1982 until  rented
     to Mr. Donahue on September 15,  1982;  and  that  various  "repairs"  and
     alterations" were made during that period of vacancy which should merit  a
     rent increase.

     The owner submitted copies of Mr. Shipp's 1972 income tax returns  showing
     the premises as his address and copies of  his  1971  returns  showing  an
     address elsewhere.

     The owner also submitted copies of 16 bills  for  various  items  alleging
     relating to the abovenoted repairs and alterations.









          DOCKET NUMBER: AK 610175-RO (REFILE OF ARL 07767-B)
     The Commissioner is of the opinion that the proceeding should be  remanded
     for further processing.

     The Commissioner notes that it is unusual for an owner to be in possession 
     of a tenant's income tax returns and  the  owner  should  be  required  to
     explain this on remand.

     However, those returns along with the copy of Mr. Shipp's lease  submitted
     by the complainant tenant do indicate the possibility of a  prior  tenancy
     which bridged the  ETPA  base  date.   It  was,  therefore,  premature  to
     establish this fair market rent without further investigation.

     The Commissioner further  notes  that  there  is  presently  still  not  a
     complete rental history.  The tenant may,  therefore,  be  entitled  to  a
     default procedure if the owner cannot submit  such  a  rental  history  on
     remand.

     The bills submitted by the owner, without an itemized cost breakdown,  are
     not sufficient to show what items relate to "repairs" warranting  no  rent
     increase or to "alterations" which might warrant a rent increase and  were
     properly disregarded by the Administrator.  However, an remand, the  owner
     should be afforded an opportunity to clarify the matter.

     THEREFORE, pursuant to the Rent Stabilization Law and Code, it is

     ORDERED, that this petition be, and the same hereby is,  remanded  to  the
     Rent Administrator for further processing in accord  herewith.   The  Rent
     Administrator's order remains in full force and effect but  the  direction
     to refund excess rent is stayed until a new order is issued on remand.

     ISSUED:












                                                                   
                                             ELLIOT SANDER
                                          Deputy Commissioner




                                                   
      
    

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