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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. ARL 09940-K
DISTRICT RENT ORDER
DOCKET NO. T/A 12137
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On May 1, 1986 the above-named petitioner-owner filed a Petition
for Administrative Review against an order issued on April 3,
1986 by the Rent Administrator, 92-31 Union Hall Street, Jamaica,
New York concerning housing accommodations known as 2147 East
17th Street, Brooklyn, New York Apartment 3A.
The Commissioner notes that this proceeding was initiated prior
to April 1, 1984. Sections 2526.1(a)(4) and 2521.1(d) of the
Rent Stabilization Code (effective May 1, 1987) governing rent
overcharge and fair market rent proceedings provide that
determination of these matters be based upon the law or code
provisions in effect on March 31, 1984. Therefore, unless
otherwise indicated, reference to Sections of the Rent
Stabilization Code (Code) contained herein are to the Code in
effect on April 30, 1987.
The Commissioner has reviewed all of the evidence in the record
and has carefully considered that portion of the record relevant
to the issues raised by the administrative appeal.
This proceeding was commenced on February 6, 1984 by the tenant
filing a Fair Market Rent Appeal. The tenant took occupancy of
the subject apartment pursuant to a two year lease which
commenced September 15, 1982 and expired September 30, 1984 at a
monthly rent of $400.00.
The owner was served with a copy of the application and afforded
an opportunity to submit comparability data. In response, the
owner submitted rental information for the subject line ("A") and
for apartments in line "E" along with evidence regarding new
equipment installed in the subject apartment.
In Order Number CDR 14,568, the Rent Administrator established
the fair market rent of the subject apartment at $375.99
effective September 15, 1982, the commencement date of the
initial rent stabilized lease, based on the special fair market
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rent guideline and the comparability date submitted by the owner.
The Administrator also included rent increases for new equipment
installed in the subject apartment in the fair market rent
computations. The Administrator further determined that the
owner had collected excess rent in the amount of $1,086.20 and
directed the owner to refund the excess rent to the tenant.
In this petition, the owner contends that the fair market rent
appeal should be reconsidered to take the size of the subject
apartment into account. The owner asserts that the subject
apartment is the largest in the building.
The owner further contends that the fuel cost adjustment was not
considered in the fair market rent determination.
In response to the petition, the tenant asserts that the
Administrator's determination was correct.
The Commissioner is of the opinion that this petition should be
Section 26-513 of the Rent Stabilization Law provides, in
pertinent part, that fair market rent adjustment applications are
to be determined by the use of special fair market rent
guidelines orders promulgated by the New York City Rent
Guidelines Board and by the rents generally prevailing in the
same area for substantially similar housing accommodations. In
order to determine rents generally prevailing in the same area
for substantially similar housing accommodations, it is the
Division of Housing and Community Renewal's (DHCR's) policy to
allow owners to submit the required comparability data. In cases
where an owner fails to submit the required comparability data,
the fair market rent is determined solely on the basis of the
special fair market rent guidelines order.
In this case, the owner submitted comparability data for
apartments in the subject line ("A") and the "E" line. Based
thereon, the Rent Administrator properly established the fair
market rent for the subject apartment based on the special fair
market guideline and the owner's comparability data.
Regarding the owner's contention that the size of the subject
apartment should be taken into account, the Commissioner notes
that the owner's comparability data shows that the apartments
cited contain the same number of rooms as the subject apartment.
The Rent Administrator is not required to look beyond the room
count of the apartments used as comparables.
Regarding the owner's contention that the fuel cost adjustment
was not considered in the fair market rent determination, the
Commissioner notes that the fuel cost adjustment was not part of
Special Guidelines Order Number 13, the special guideline which
was in effect when the subject tenant took occupancy.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
ORDERED, that this petition be, and the same hereby is, denied,
and the District Rent Administrator's order be, and the same
hereby is, affirmed.
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