Docket Number: BB 120580-RT
                                  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.: BB 120580-RT 
                                                
             MEYER SCHER,                        DISTRICT RENT ORDER
                                                 DOCKET NO.: QC-000116-AC 
                                PETITIONER     
          ----------------------------------X                           

             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
          denied.


          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
          Eligibility.

          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 
          is

          ORDERED, that this petition be, and the  same  hereby  is,  denied,
          and the Rent Administrator's order be,  and  the  same  hereby  is,
          affirmed.

          ISSUED:


                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner


    

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