DOCKET NUMBER: ARL 6670-L
                                 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.: ARL 6670-L
                                         :  
                                            DRO DOCKET NO.: 6239

     ROBERT FARBER         PETITIONER    : 
     ------------------------------------X                             

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On November 21, 1985 the above named petitioner-owner filed a Petition for 
     Administrative Review against an order issued on November 13, 1985 by  the
     District  Rent  Administrator,  Gertz  Plaza,  92-31  Union  Hall  Street,
     Jamaica, New York concerning housing accommodations known  as  56  Seventh
     Avenue, New York,  New  York,  Apartment  F17  wherein  the  Administrator
     determined the fair market rent pursuant to the special fair  market  rent
     guideline promulgated by the New  York  City  Rent  Guidelines  Board  for
     calculating fair market rent appeals.   Said  order  was  based  upon  the
     owner's failure to submit a DC-2 Notice and comparability data.

     The  Commissioner  notes  that  this  proceeding  stems  from  a  tenant's
     objection to the 1984 apartment registration claiming, among other things, 
     a fair market rent appeal.  It is undisputed that the  complaining  tenant
     (Thomas Teasley) is the first stabilized tenant who took  occupancy  after
     decontrol pursuant to a lease which commenced May 15, 1980 and terminating 
     on April 30, 1983 at a rental of $475.00 per  month.   The  apartment  was
     leased to the tenant as a three room apartment and was  so  registered  by
     the owner in 1984.

     In the order appealed herein the Administrator adjusted the initial  legal
     regulated rent by establishing  the  fair  market  rent  for  the  subject
     apartment at $449.09 per month,  affecting  March  15,  1980  and  further
     adjusted same to reflect a subsequent renewal lease  plus  an  amount  for
     air-conditioner electricity.  In establishing the  fair  market  rent  the
     Administrator applied the Special Guideline to an amount  ($374.24)  which
     was determined to be  the  1978/79  maximum  base  rent  for  the  subject
     apartment.  

     In  its  petition  for  administrative  review  the  owner  contends,   in
     substance, that the 1978/79  MBR  amount  used  by  the  Administrator  is
     incorrect as it fails to reflect an adjustment for gas and electricity  as
     included services.  Submitted with the petition is a copy of a portion  of
     a corrected 1972/73  Maximum  Base  Rent  Order  issued  for  the  subject
     premises on June 18, 1974 plus copies of N-26 Forms (Notice of increase in 
     Maximum Base/Maximum Collectible Rent) prepared by the owner for the 



     1974/75, 1976/77 and 1978/79 MBR cycles  wherein  the  owner  updated  the
     1972/73 MBR of $259.38 to reflect gas and electricity as landlord provided 
     services for a two (2) room apartment.







     DOCKET NUMBER: ARL 6670-L
     After a careful consideration of the entire record, the Commissioner is of 
     the opinion that this petition should be denied.

     At the outset the Commissioner notes that the  owner  does  not  deny  the
     default before the Administrator with respect to the production of a  DC-2
     Notice  and  comparability  data.   Accordingly  it  was  proper  for  the
     administrator to establish the fair market rent for the subject  apartment
     by application of the special guideline to the Maximum Base Rent  for  the
     apartment.

     A review of Division records discloses that the New York  City  Office  of
     Rent Control initially established Maximum  Base  Rents  for  the  subject
     premises in June 1972 at which time all "F" line  apartments  were  listed
     as three rooms.  As  the  result  of  subsequent  challenges  a  corrected
     Maximum Base Rent order was issued for the subject premises  on  June  18,
     1974.  Said order, among other things, reflected a change  in  room  count
     for MBR purposes whereby  all "F" line apartments, with the  exception  of
     apartments 6F and 19F, were changed from three to two rooms.  (Puruant  to
     a further corrected order issued on  July  10,  1974  the  room  count  of
     apartment 6F was also changed to two rooms for MBR purposes.)

     Despite the reduction in room count indicated on  said  corrected  Maximum
     Base Rent order of June 18, 1974, the 1972/73 MBR listed for apartment 17F 
     (259.28) is that of a three room apartment whereas  the  1972/73  MBR  for
     all other  two  room  apartments  on  the  17th  floor  is  $210.10.   The
     Commissioner is of the opinion that application of the proper  MBR  for  a
     two room apartment to rectify what appears  to  be  a  clear  irregularity
     would negate any benefit to the owner  by  further  consideration  of  the
     arguments raised on appeal.  As such, and  in  the  absence  of  a  timely
     petition for administrative review of the Administrator's  order  (6239)by
     the tenant, the Commissioner is of the opinion and finds that the  owner's
     appeal from the fair market rent established by the  Administrator  should
     be denied.

     The Commissioner notes that on December 10, 1986 the  Commissioner  issued
     an Order and Opinion (ART 12,174-L) granting this  tenant's  petition  for
     administrative review of a subsequently issued order   (L  3117073-RT)  of
     the Administrator to the extent of modifying same to conform to  the  fair
     market rental of $449.09 established in the order (6239) appealed herein.

     THEREFORE, in accordance with the provisions  of  the  Rent  Stabilization
     Code, it is

     ORDERED, that this petition be, and the same hereby is  denied;  and  that
     the order of the Administrator appealed herein be, and the same hereby  is
     affirmed.

     ISSUED:
                                                                 
                                          ELLIOT SANDER
                                       Deputy Commissioner

                                                   
    

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