BD 110522-RO
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
------------------------------------X
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:
BD 110522-RO
SHARON TOWERS REALTY, DRO DOCKET NO.:
Q 3121851-R
PETITIONER
------------------------------------X
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On April 8, 1987, the above-named petitioner-owner timely refiled
a Petition for Administrative Review of an order issued on
October 2, 1986 by the District Rent Administrator, 10 Columbus
Circle, New York, New York, concerning housing accommodations
known as Apartment 7-M, 62-59 108th Street, Forest Hills,
New York wherein the District Rent Administrator determined that
the tenant had been overcharged.
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 administrative appeal.
This proceeding was originally commenced by the filing of a rent
overcharge complaint by the tenant with the New York City
Concil-iation and Appeals Board, one of the predecessor agencies
to the Division of Housing and Community Renewal (DHCR). The
tenant's complaint stated that she moved in in September, 1969.
Later
submissions by the tenant contained conflicting dates of initial
occupancy, i.e., October, 1965 and September, 1966.
The owner was served with a copy of the complaint and was
requested to submit rent records to prove the lawfulness of the
rent being charged. In answer to the complaint, the owner stated
that it purchased the premises in 1981, from a seller who
pur-chased at foreclosure in 1978, and that it could not obtain a
complete rental history. The owner submitted leases from October
1, 1979 through September 30, 1985, along with correspondence
regarding an electrical conversion rent reduction and a rent in-
crease for a major capital improvement.
In Order Number CDR 24,039, the Rent Administrator determined
that the initial base rent for the subject apartment was $160.00
as of September 1, 1969, and the tenant was overcharged there-
after in the amount of $8,807.50, including interest on over-
charges on or after April 1, 1984; and directed the owner to
refund this sum to the tenant.
In this petition, the owner contends that the Rent Administra-
tor's order is incorrect and should be modified because the
September 1, 1969 occupancy date was erroneous; that the
com-putation of rentals should be reviewed, with particular
reference to fuel adjustments, electric inclusions, and major
capital improvements, and that this review will prove no
overcharge existed. In response to a Division inquiry, the owner
addition-ally supplied a breakdown of air conditioner charges and
arrearages allegedly owed by the tenant.
The tenant did not respond to this petition.
The Commissioner is of the opinion that the petition for
adminis-trative review should be denied.
The Commissioner finds that the Administrator made several errors
in its computations; however, application of the correct proces-
sing procedures would more than negate any benefit to the owner
based on the arguments raised by the owner in its petition. As
such, and in the absence of a timely petition for administrative
review by the tenant, the Commissioner finds it appropriate to
deny this appeal.
The Commissioner notes that since the September 1, 1969 rent has
been determined to be the lawful base rent, failure to resolve
the discrepancy concerning the tenant's original date of
occupancy does not prejudice the owner.
In accordance with Operational Bulletin 84-4, an owner can
col-lect air conditioner charges from rent stabilized tenants
without an order from the DHCR. However, an owner cannot collect
the
charges now for an air conditioner if the owner did not begin
charging for the air conditioner at the time it was installed or
within a reasonable period of time thereafter. A reasonable
period is generally considered to be that amount of time in which
an owner would be expected to learn that the air conditioner was
installed. Having exceeded that period, the owner is held to
have waived charges related to the air conditioner. The tenant
alleges that the air conditioner was installed in June 1966. The
then owner did not bill the tenant for the air conditioner.
Accordingly, the Commissioner determines that the owner knew, or
should have known, of the presence of the air conditioning unit,
and thus has waived the charges related to it.
Because this determination concerns lawful rents only through
September 30, 1985, the owner is cautioned to adjust subsequent
rents to an amount not greater than that determined by this order
plus any lawful increases, and to register any adjusted rents
with this order and opinion being given as the explanation for
the adjustment.
This order may, upon the expiration of the period in which the
owner may institute a proceeding pursuant to Article 78 of the
Civil Practice Law and Rules, be filed and enforced as a judg-
ment, or not in excess of twenty percent thereof per month of the
amount owed by the owner may be offset against any rent
there-after 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, denied
and that the Rent Administrator's order be, and the same hereby
is, affirmed.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
RENT CALCULATION CHART
TENANT : Ruth Simon Rent Overcharge (through 09/30/85) = $ 8,538.27
Interest after 04/01/84 = $ 102.83
PREMISES : 62-59 108th Street, Forest Hills, NY Excess Security = $ + 86.05
APT. # : 7-M
TOTAL OVERCHARGE = $ 8,727.15
DOCKET # : BD 110522-RO ============
Pg. 1 of 3
================+======================+==============+=============+=====================================+=================
(1) | (2) | (3) | (4) | (5) | (6) | (7)
| LEASE TERM | ACTUAL RENT | EFFECTIVE | | LAWFUL | OVERCHARGE
TENANT'S NAME | FROM TO | CHARGED | DATE OF | EXPLANATION | STABIL. | CALCULATION
| | | INCREASE(S) | | RENT /1 |
================+===========+==========+==============+=============+==========================+==========+=================
| | | | | | |
Ruth Simon | 09/01/69 | 08/31/72 | $ 160.00 | 09/01/69 | Base Date Rent 09/01/69 | $ 160.00 |
| | | | | | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | | |
| | | | | Guideline 4: 06/30/72 | | $ 8.20
" " | 09/01/72 | 08/31/75 | $ 185.00 | 09/01/72 | rent of $160.00 + 11.5% | $ 176.80 | x 36 mos.
| | | | | guideline increase for | | $ 295.20
| | | | | a 3 year renewal lease | |
| | | | | + 1/2% stabilizer. | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | Guideline 6: 06/30/73 | |
| | | | | rent of $176.80 + 10.5% | |
" " | 09/01/74 | 08/31/76 | $ 235.94 | 09/01/74 | guideline increase for | $ 200.66 | $ 35.28
| | | | | a 2 year renewal lease | | x 24 mos.
| | | | | + 2 1/2% electrical | | $ 846.72
| | | | | inclusion + 1/2% sta- | |
| | | | | bilizer. | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | | |
| | | | | Guideline 8: 06/30/75 | |
" " | 09/01/76 | 09/30/79 | $ 267.48 | 09/01/76 | rent of $200.66 + 11% | $ 222.73 | $ 44.75
| | | | | guideline increase for | | x 36 mos.
| | | | | a 3 year renewal lease. | | $1,611.00
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
/1 Where the actual rent charged is less than the rent with maximum permitted increases, the lawful stabilization rent is
limited to the rent charged.
RENT CALCULATION CHART
TENANT : Ruth Simon Rent Overcharge (through 09/30/85) = $ 8,538.27
Interest after 04/01/84 = $ 102.83
PREMISES : 62-59 108th Street, Forest Hills, NY Excess Security = $ + 86.05
APT. # : 7-M
TOTAL OVERCHARGE = $ 8,727.15
DOCKET # : BD 110522-RO ============
Pg. 2 of 3
================+======================+==============+=============+=====================================+=================
(1) | (2) | (3) | (4) | (5) | (6) | (7)
| LEASE TERM | ACTUAL RENT | EFFECTIVE | | LAWFUL | OVERCHARGE
TENANT'S NAME | FROM TO | CHARGED | DATE OF | EXPLANATION | STABIL. | CALCULATION
| | | INCREASE(S) | | RENT /1 |
================+===========+==========+==============+=============+==========================+==========+=================
| | | | | Guideline 11: 06/30/79 | |
Ruth Simon | 10/01/79 | 09/30/81 | $ 324.85 | 10/01/79 | rent of $222.73 + 12% | $ 249.46 | $ 75.39
| | | | | guideline increase for | | x 12
| | | | | a 2 year renewal lease. | | $ 904.68
| | | |-------------|--------------------------|----------|-----------------
| | | | | | | $ 67.39
| | | | 10/01/80 | $ 8.00 per month fuel | $ 257.46 | x 12
| | | | | surcharge. | | $ 808.68
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | | |
| | | | | Guideline 13: 09/30/81 | | $ 81.08
" " | 10/01/81 | 09/30/82 | $ 365.46 | 10/01/81 | rent of $249.46 + 10% | $ 284.38 | x 10 mos.
| | | | | guideline increase for | | $ 810.80
| | | | | a 1 year renewal lease | |
| | | | | + 4% electrical inclu- | |
| | | | | sion 10/01/81 - 08/01/82| |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | | |
| | | | | MCI CDR #00771 (.0075 x | |
" " | 08/01/82 | 09/30/82 | $ 368.20 | 10/01/82 | $284.38) = $2.13 per | $ 286.51 | $ 81.69
| | | | | month. | | x 2 mos.
| | | | | | | $ 163.38
| | | | | | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
/1 Where the actual rent charged is less than the rent with maximum permitted increases, the lawful stabilization rent is
limited to the rent charged.
RENT CALCULATION CHART
TENANT : Ruth Simon Rent Overcharge (through 09/30/85) = $ 8,538.27
Interest after 04/01/84 = $ 102.83
PREMISES : 62-59 108th Street, Forest Hills, NY Excess Security = $ + 86.05
APT. # : 7-M
TOTAL OVERCHARGE = $ 8,727.15
DOCKET # : BD 110522-RO ============
Pg. 3 of 3
================+======================+==============+=============+=====================================+=================
(1) | (2) | (3) | (4) | (5) | (6) | (7)
| LEASE TERM | ACTUAL RENT | EFFECTIVE | | LAWFUL | OVERCHARGE
TENANT'S NAME | FROM TO | CHARGED | DATE OF | EXPLANATION | STABIL. | CALCULATION
| | | INCREASE(S) | | RENT /1 |
================+===========+==========+==============+=============+==========================+==========+=================
| | | | | | |
| | | | | Guideline 14: 09/30/82 | |
" " | 10/01/82 | 09/30/85 | $ 398.35 | 10/01/82 | rent of $286.51 + 9% | $ 312.30 | $ 86.05
| | | | | guideline increase for | | x 3.5 mos.
| | | | | a 3 year renewal lease | | $ 301.18
| | | | | 10/01/82 - 01/13/83. | |
----------------+-----------------------------------------------------------------------------------------------------------
| | | | | | |
| | | | | CAB Opinion No. 21,232 | | $ 86.05
Ruth Simon | 10/01/82 | 09/30/85 | $ 363.35 | 01/13/83 | Reduction for electrical| $ 277.30 | x32.5 mos.
| (Cont'd.) | (Cont'd.)| | | inclusion ($35.00/month)| | $2,796.63
| | | | | | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
/1 Where the actual rent charged is less than the rent with maximum permitted increases, the lawful stabilization rent is
limited to the rent charged.
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