BA 610109 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

          APPEAL OF                               DOCKET NO. BA 610109 RO

                   GARY TOWERS COMPANY,
                                                  DISTRICT RENT ADMINISTRATOR'S
                                                  DOCKET NO.  051824 
                                                  TENANT:  CLARICE ROBINSON


          On January 27, 1987 the above-named owner filed  a  petition  for
          administrative review of an order issued on January 20,  1987  by
          a District Rent Administrator concerning  housing  accommodations
          known as 3123 Bailey  Avenue,  Apartment  6C,  Bronx,  New  York,
          wherein the  Administrator  determined  that  an  overcharge  had

          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 petition for review.

          This proceeding was commenced on  September  20,  1984  upon  the
          filing  of  the   tenant's   objection   to   the   rent/services
          registration.  The tenant stated, among other  things,  that  she
          took occupancy on May 1, 1984, and the rent  shown  on  the  RR-1
          form was $508.25.  The tenant added that  the  rent  registration
          was later amended by the owner to $499.42.

          The Division of Housing and Community Renewal (DHCR) received the 
          owner's answer.  The  owner  alleged  that  the  registered  rent
          included 1/40th of the cost of  equipment  ordered  or  installed
          during the vacancy period in April 1984.  The cost of these items 
          could not be estimated when the rent was registered and the lease 
          was signed.  When the actual costs proved to be lower, the  owner
          alleged it appropriately lowered the actual rent received and the 
          registered rent.  Further,  the  owner  alleged  that  the  prior
          tenant had filed an overcharge complaint under Docket No.
          B 3101248 R.  In that case DHCR ruled on March  4,  1986  that  a
          fee of $10.00 per month for a  tenant-installed  air  conditioner
          would be reasonable.  The owner did actually collect  only  $7.00
          per month.  The owner submitted with its answer a complete  lease
          history, a copy of the prior DHCR order, and copies of paid bills 
          to document the allowable vacancy improvements.

          In the order here under review the Administrator established  the
          lawful stabilized rent at $529.08 per month as  of  May  1,  1985

          BA 610109 RO
          through April 30, 1986, and directed the owner to refund $894.05. 
          This amount included excess security and treble  damages  through
          April 30, 1986.

          In its petition for administrative review, the owner repeats  the
          allegations made below.  Namely, it cites the prior DHCR order 
          (B 3101248 R) as evidence of the fact that the rent  charged  was
          lawful as to the prior tenant in 1984.  Specifically,  the  owner
          alleges th t  the  Administrator  erred  in  applying  the   air-
          conditioning   charge   in   his   calculations,   wherein    the
          Administrator permitted the owner only $7.00 per month.

          In her answer to the petition for review, the tenant states  that
          she has never had an air conditioner in the subject apartment.
          After careful consideration the Commissioner is  of  the  opinion
          that this petition should be granted.

          First,  in  recomputing  the   legal   stabilization   rent   the
          Commissioner notes that the $10.00 per month was deemed to  be  a
          reasonable charge by the DHCR in a  prior  proceeding.   However,
          the owner collected only $7.00 per  month.   In  accordance  with
          long-standing precedent in such cases, this $7.00 charge  becomes
          part of the base rent for the purpose of computing any  guideline
          increases.  Thenceforth, the stabilized tenant of  the  apartment
          (as well as future stabilized tenants) had the right  to  install
          the tenant's own air conditioner at  no  additional  increase  in
          rent.  Accordingly, the Administrator erred in not including  the
          amount in the base rent subject to guideline  increases  in  each
          subsequent lease.

          Second, in his calculations the Administrator  made  one  further
          error.  In applying Guideline 16, the Administrator allowed for a 
          6%  increase  based  on  a  one-year  renewal  instead   of   the
          appropriate 9% increase for a two-year  renewal.   (See  attached
          Rent Calculation Chart).

          The resultant recalculation of the rent shows that no overcharges 

          The attached Rent Calculation Chart is incorporated in and  fully
          made a part of this order and opinion.

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

          ORDERED, that this petition be, and the same hereby is,  granted,
          and that the Administrator's order be, and the  same  hereby  is,
          revoked; and it is

          FURTHER ORDERED, that if the owner has already complied with  the
          Administrator's order and there are arrears due to the owner as a 
          result of the instant determination, the tenant may pay  off  the
          arrears in twelve equal monthly installments.  Should the  tenant
          vacate after the issuance of this order, said  arrears  shall  be
          payable immediately.

          Note:  The current tenant retains the right  to  install  an  air
                 conditioning unit in the subject apartment at no        

          BA 610109 RO
                 additional cost.

                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner

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