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
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IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: ARL 6670-L
:
DRO DOCKET NO.: 6239
ROBERT FARBER PETITIONER :
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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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