Docket Number: BB 120580-RT
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.: BB 120580-RT
MEYER SCHER, DISTRICT RENT ORDER
DOCKET NO.: QC-000116-AC
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On February 23, 1987 the above-named petitioner-tenant filed a
Petition for Administrative Review against an order issued on
January 21, 1987 by the Rent Administrator, 92-31 Union Hall
Street, Jamaica, NY concerning housing accommodations known s 68-
36 108th Street, 68-38 Yellowstone Blvd., 68-37 Yellowstone Blvd.,
103-26 68th Road and 104-21 68th Drive, Forest Hills, N.Y.
The Commissioner has reviewed all of the evidence in the record and
has carefully considered that portion of the record relevant to the
issue raised by the administrative appeal.
This proceeding was commenced on December 27, 1985 by the owner
filing an application for a Labor Cost Adjustment to the maximum
rents of the 238 rent controlled accommodations located at the
subject premises for the 1984-85 Maximum Base Rent (MBR) cycle.
Several tenants, including the subject tenant, submitted responses
to the application. The subject tenant, who resides at 68-36 108th
Street, asserted that the services of certain employees listed in
the owner's application - 1 assistant superintendent, 1 utility man
and 3 garagemen - had never been and were not presently being
received at the subject building, that there is no garage in the
subject building and that the tenants should not be required to pay
additional rent for services not rendered.
The Rent Administrator's order, appealed herein, increased the
maximum rents of the subject accommodations to reflect
uncompensated labor costs incurred by the owner.
In this petition, the tenant repeats the allegations raised during
the proceeding before the Rent Administrator.
The Commissioner is of the opinion that this petition should be
The Rent and Eviction Regulations were amended in 1970 to provide
for the establishment of the Maximum Base Rent system. Included in
the formula for establishing Maximum Base Rents is an allowance for
payroll expenses. Section 2202.11 of the Regulations provides that
maximum rents may be increased where an owner incurs, or is
Docket Number: BB 120580-RT
obligated to incur, payroll expenses for building service employees
which exceed the formula provision for labor costs recognized in
establishing the gross MBR for a building. An owner cannot file an
application for such increase unless Maximum Base Rents for
apartments have been authorized by the issuance of an MBR Order of
The record in this case indicates that the subject premises
consists of 5 buildings containing a total of 541 housing
accommodations serviced by 24 employees. The owner properly
complied with the Labor Cost Adjustment application procedures and
the Rent Administrator properly computed the appropriate rent
adjustment. The petitioner-tenant has not established that the
adjustment should be revoked.
The Commissioner notes that the owner was issued orders previously
granting Labor Cost Adjustment increases for the subject premises
(Docket No. 2AOM 12842, issued July 18, 1983) based on the same
number of employees with the same job titles and that no appeal was
filed by any tenant against said orders which incorporated the cost
of said employees in the rent. The fact that the particular
building wherein the tenant resides may not contain a garage or
that the tenant herein does not utilize a garage space is not a
sufficient basis to bar the issuance of the labor cost adjustment.
It is noted that the garage employees help keep loiterers from
entering the 5 building complex through the garage and,
accordingly, help serve as complex security.
THEREFORE, in accordance with the Rent and Eviction Regulations, it
ORDERED, that this petition be, and the same hereby is, denied,
and the Rent Administrator's order be, and the same hereby is,