BA 110438-RO

                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                             JAMAICA, NEW YORK    11433

          APPEAL OF                               ADMINISTRATIVE REVIEW
                                                  DOCKET NO.:  BA 110438-RO
                 MAMNOON A. MARGHOOB,             DRO DOCKET NOS.:  17044
                                                  TENANT:  HENRY HORTON

                                       IN PART

          On January 12, 1987 the  above  named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          December 16, 1986 by the District  Rent  Administrator,  2  World
          Trade   Center,   New   York,   New   York   concerning   housing
          accommodations known as  Apartment  B15  at  77-02  34th  Avenue,
          Jackson Heights, New York wherein the District Rent Administrator 
          determined that the owner had overcharged the tenant.

          The  issue  in  this  appeal  is  whether   the   District   Rent
          Administrator's order was warranted.

          The applicable sections of the Law  are  Section  26-516  of  the
          Rent Stabilization Law and Sections 2522.4(a)  and  2526.1(a)  of
          the Rent Stabilization Code.

          The Administrator's order used a  April  1,  1980  base  rent  of
          $255.19  to  determined  a  lawful  rent  of   $346.76   in   the
          complainant's vacancy lease commencing April 1, 1984,  and  found
          an overcharge of $4,991.15 as  of  March  31,  1986.   The  order
          stated that the owner had not submitted documentation for claimed 
          renovations and new appliances.

          In this petition,  the  owner  contends  in  substance  that  the
          documentation was submitted on time.  With his petition the owner 
          has enclosed a copy of a  certified  mail  receipt  signed  by  a
          Division of Housing and Community Renewal (DHCR) staff member  on
          February 4, 1986; and a March 25, 1984 invoice  from  Deco  Renew
          for "complete renovation of whole apt."  of  Apartment  B-15  for
          $7,036.25, consisting of the following:

               1)   Repair wood floor, sand and polish

          BA 110438-RO
               2)   Remodel kitchen:
                    1)   Break and remove old cabinet
                    2)   Fix new cabinets

               3)   Appliances
                    1)   Remove old apps.
                    2)   Supply and install new apps.

               Remodel bathroom
                    1)   Remove old medicine cabinet
                    2)   Install new   "       "
                    3)   Fix all bathroom ceramic tile
                    4)   Remove old and fix new vanity

                    1)   Primer and base
                    2)   Plaster and sand
                    3)   Good two coat paint

          The owner also enclosed a March 27, 1984 invoice for $891.73  for
          "additional charges for repairs in Apartment # B-15 and B-60"; an 
          invoice for $9,580.13 for work in Apartment B-60;  and  cancelled
          checks to Ahmed Gangat made out on April 4, 1984, May 7, 1984 and 
          July 30, 1984 and totalling $15,724.65.  The owner contended that 
          the $891.73 cost should be pro-rated between the two  apartments,
          with a cost of $378.24 being assigned to the  subject  apartment.
          While the invoices total $17,508.11, the owner later stated  that
          the reduced amount of $15,724.65 was paid after negotiations with 
          Deco Renew.

          The Commissioner is of the opinion that this petition  should  be
          granted in part.

          The non-itemized $7,036.25 invoice  submitted  by  the  owner  is
          problematic, since it contains both  allowable  [new  appliances]
          and non-allowable ordinary repair and maintenance  [repair,  sand
          and polish floors, repair tile, and paint] items.   (The  $891.73
          invoice is not problematic, since it  is  for  "repairs"  and  is
          therefore not allowable.)  Because there is no evidence  or  even
          contention that improvements  were  not  made,  the  Commissioner
          considers it appropriate to allow some rent  increase  for  them.
          Of the potential $6,319.50 of possible expenses from the  invoice
          ($7,036.25 billed, pro-rated to account for the percentage of all 
          three invoices actually paid), $4,000.00  is  allowed  as  likely
          being not more than the value of the new equipment  installed  in
          and improvements made to the tenant's apartment, after  excluding
          costs for work constituting  ordinary  maintenance  and  repairs.
          This entitles the owner to  an  increase  of  $100.00  ($4,000.00
          divided by 40) in the complainant's vacancy lease over what would 
          normally be  allowed.   The  lawful  stabilization  rent  in  the
          tenant's initial lease from April 1, 1984 to March  31,  1985  is
          therefore $446.74 per month (September 30, 1983 rent  of  $304.16
          increased by a Guideline 15 increase of 4% for a  one-year  lease
          and 10% vacancy allowance equals $346.74, plus  $100.00  for  new
          equipment and improvements).  Because the owner charged  $525.00,
          there was an overcharge of $78.26 per month  for  12  months,  or
          $939.12.  Interest on that overcharge is  $130.31  through  March
          31, 1986, the last day covered by the Administrator's order.  The 
          lawful stabilization rent in the tenant's  lease  from  April  1,

          BA 110438-RO
          1985 to March 31, 1986 is $473.54 per month (September  30,  1984
          rent of $446.74 plus a 6% Guideline 16 increase  for  a  one-year
          renewal lease).  Because the owner charged $556.50, there was  an
          overcharge of  $82.96  per  month  for  12  months,  or  $995.52.
          Interest on that overcharge is $48.53  through  March  31,  1986.
          The total overcharge as of March 31, 1986 was therefore $2,196.44 
          ($939.12 plus $130.31 plus $995.52 plus $48.53 equals  $2,113.48,
          plus excess security of $82.96).

          The owner is cautioned to adjust the rent, in leases after  those
          considered in  this  order,  to  amounts  no  greater  than  that
          determined by this  order  plus  any  lawful  increases,  and  to
          register any adjusted rent, with this order being  given  as  the
          reason for the adjustment.  Because of the possibility  that  the
          tenant  herein  may  have  vacated  by   the   time   that   this
          determination is issued, a copy of this  determination  is  being
          mailed to the tenant-in-occupancy.

          If the owner has already complied with the Administrator's  order
          and there are arrears due to the owner as a result of the present 
          determination, the owner is directed to allow the tenant  to  pay
          off the arrears in twelve equal monthly installments.  Should the 
          tenant  vacate  after  the  issuance  of  this  order,  or   have
          previously vacated, said arrears shall be payable immediately.

          This order may, upon the expiration of the period  in  which  the
          owner may institute a proceedi g  pursuant  to  Article  Seventy-
          Eight of the Civil Practice Law and Rules, be filed and  enforced
          by the tenant in the same manner as a judgment or not  in  excess
          of twenty percent thereof per month may  be  offset  against  any
          rent thereafter due the owner.

          THEREFORE, in accordance with  the  Rent  Stabilization  Law  and
          Code, it is

          ORDERED, that this petition be, and the same hereby  is,  granted
          in part and that the  Administrator's  order  be,  and  the  same
          hereby is, modified in accordance with this  order  and  opinion.
          The total overcharge, including  excess  security  of  $82.96  is
          $2,196.44 as of March 31, 1986.  The lawful stabilization rent is 
          $473.54 per month in the lease from April 1, 1985  to  March  31,


                                                  JOSEPH A. D'AGOSTA
                                                  Acting Deputy Commissioner


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