DOC. NOS.: BD 410182-RT et al.
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                            :   DOCKET NOS. BD 410182-RT
                        JAY GOULD,                             BD 410061-RT
                                               :   D.R.O. DOCKET NO.:
                                   PETITIONER  :            TC-083021-G
          -------------------------------------X                 CDR 29482

                           ORDER AND OPINION GRANTING PETITION
                                FOR ADMINISTRATIVE REVIEW

          On April 6, 1987 the above-named petitioner-tenant filed  a  Petition
          for Administrative Review against an order issued on March  16,  1987
          by the Rent Administrator, 10 Columbus Circle, New  York,  New  York,
          concerning the housing accommodations known as 363 East 76th  Street,
          New York, New York  Garage  Space  GA26  wherein  the  District  Rent
          Administrator determined that  the  owner  had  not  overcharged  the
          tenant.  The tenant's petition was assigned two docket number.

          The Commissioner notes that this proceeding was filed prior to  April
          1,  1984.   Sections  2526.1(a)(4)  and   2521.1(d)   of   the   Rent
          Stabilization Code (effective May 1, 1987) governing rent  overcharge
          and fair market rent proceedings provide that determination of  these
          matters be based upon the law or code provisions in effect  on  March
          31,  1984.   Therefore,  unless  otherwise  indicated,  reference  to
          Sections of the Rent Stabilization Code (Code) contained  herein  are
          to the Code in effect on April 30, 1987.

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

          The applicable sections of the Law are Section 2520.6 and  2526.1  of
          the current Rent Stabilization Code.

          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.

          The proceeding was originally  commenced  in  February  1984  by  the
          filing of a rent overcharge complaint by  the  tenant  in  which  the
          tenant stated in substance  that the garage is  owned and operated by

          the building owners and therefore the garage space leases  should  be
          subject to the Rent Stabilization Law and  Code;  that  he  is  being
          overcharged in the rent for his  garage  space  and  that  the  owner
          refuses to give him three year leases for  the  garage  space  as  he
          requested but offers one year leases only.   The  tenant  listed  the
          owner of the subject premises as Sherman Tower Realty Associates, c/o 
          Sulzberger-Rolfe, Inc.

          DOC. NOS.: BD 410182-RT et al.

          In support of these contentions the tenant stated that he has  always
          had three year renewal leases for the subject apartment.  In addition 
          the tenant submitted copies of all his garage space leases  beginning
          with the lease commencing May 1, 1976.  The May 1, 1976 garage  space
          lease lists the landlord as "Sherman Tower Realty Associates"  as  do
          the leases commencing May 1, 1977, July 1, 1978  and  July  1,  1979.
          The garage space leases commencing July 1, 1980, July 1,  1981,  July
          1, 1982 and July 1, 1983 list the landlord as "Sulzberger-Rolfe, Inc. 
          as Agent for John Guttierez".

          In answer to the tenant's complaint "Sulzberger-Rolfe Inc." stated in 
          substance  that  the  garage  space  is  not  subject  to  the   Rent
          Stabilization Law and Code in that on the base date,  May  31,  1968,
          the garage space had been leased to an independent  garage  operator.
          From 1967 through 1976 the independent operator was  Joseph  Slobodin
          and from 1976 to 1984 the independent operator  was  John  Guttierez.
          In support of its contentions, the owner  submitted  a  copy  of  the
          lease between the  owner  and  Mr.  Slobodin  for  the  garage  space
          commencing March 1, 1967 and terminating February 28, 1969.

          In reply to the owner's answer, the tenant stated in  substance  that
          after the death of Joseph Slobodin in March or  April  of  1976,  the
          owner began operation of the garage itself and that John Guttierez is 
          the superintendent of the subject premises.

          In Order Number CDR 29482, the  Rent  Administrator  found  that  the
          garage  space  was  leased  to  independent  garage  operator  Joseph
          Slobodin from 1967 to 1976 and leased to independent garage  operator
          John Guttierez from 1976 to 1984 and that  since  the  owner  of  the
          subject premises did not operate the garage, the garage  spaces  were
          not subject to the Rent Stabilization Law and Code.

          In this petition the tenant alleges in substance  that  after  Joseph
          Slobodin died in early 1976, the owner began to operate the garage so 
          that the garage spaces should have been found  subject  to  the  Rent
          Stabilization Law and Code.

          In answer to the petition, "Sulzberger-Rolfe, Inc." advised  that  it
          was no longer the managing agent for the subject premises and that in 
          August 1986, "363 East 76 Street Associates" became the new  managing

          A copy of the Rent Administrator's order and  the  tenant's  petition
          was sent to the new managing agent "363 East 76 Street Associates" on 
          January 16, 1991 and it was given a chance to  submit  an  answer  in
          this proceeding.  In a response dated  June  11,  1991,  the  current
          owner  stated  in  substance  that  the  fact  that  an   independent
          contracator operated the garge on the base date is dispositive of the 
          proceeding and that subsequent garage leases  between  the  owner  or
          second contractor (superintendent) and tenant do not  establish  that
          the garage was no longer operated by an independent contractor.

          The Commissioner is of  the  opinion  hat  this  petition  should  be

          Section 2520.6(r)(4)(xi)  of  the  current  Rent  Stabilization  Code
          provides in pertinent part that ancillary  services  such  as  garage
          facilities for which there is or was a separate charge shall  not  be

          DOC. NOS.: BD 410182-RT et al.
          subject to the provisions of the Rent  Stabilization  Code  where  no
          common ownership between the operator of such service and  the  owner
          exists or existed on  the  applicable  base  date,  or  at  any  time
          subsequent thereto, and such  service  is  or  was  provided  on  the
          applicable base date and at all times thereafter  by  an  independent
          contractor pursuant to  a  contract  or  agreement  with  the  owner.
          Where, however, on the applicable base date or at any time subsequent 
          thereto, there is or was a separate  charge,  and  there  is  or  was
          common ownership, directly or indirectly,  between  the  operator  of
          such service and the owner, or the service was provided by the owner, 
          any increase, other than the charge provided in the initial agreement 
          with a tenant to lease, rent or pay for such service,  shall  conform
          to the applicable rent guidelines rate.

          In the instant case the evidence of record including  copies  of  the
          garage space leases discloses that from May 1, 1976 to at least  July
          1, 1983 the garage was operated either by the owner  itself  "Sherman
          Tower Realty Associates" or by the superintendent John Guttierez - an 
          agent not independent of the owner.  Accordingly the garage space  is
          subject  to  the  applicable  rent  guidelines  rate  of   the   Rent
          Stabilization Law pursuant to Section 2520.6(r)(4)(xi).   Further the 
          tenant was entitled to select  three  year  renewal  leases  for  the
          garage space  just  as  he  selected  three  year  apartment  renewal
          leases.  However, commencing October 1, 1984 only  one  or  two  year
          leases may be selected.

          Section 2526.1 of the Rent Stabilization Code provides  in  pertinent
          part that any owner who is found by the DHCR to  have  collected  any
          rent or other consideration in excess of the legal regulated rent  on
          and after April 1, 1984 shall be ordered  to  pay  to  the  tenant  a
          penalty equal to three times the amount of such excess.  If the owner

          establishes by a preponderance of the evidence  that  the  overcharge
          was not willful, the DHCR shall establish the penalty as  the  amount
          of the overcharge plus interest from the date of the first overcharge 
          on or after April 1, 1984.

          In the instant case the owner  has  not  submitted  any  evidence  to
          establish that the overcharge was not willfull.   Further  the  owner
          was advised in the proceeding before the Rent  Administrator  of  the
          possible imposition of  treble  damages  and  tahe  Commissioner  has
          previously  imposed  treble  damages  in   cases   involving   garage
          overcharges -  DI  610132RO.   Therefore  the  imposition  of  treble
          damages was warranted.

          Taking the aforementioned factors into account, the Commissioner  has
          calculated the lawful stabilization rents and the amount of the  rent
          overcharge for the subject garage space.

          The lawful stabilization rents and amount of the rent overcharge  are
          set forth on the amended rent calculation chart attached  hereto  and
          made a part hereof.

          Because this determination concerns lawful rents  only  through  June
          30, 1985, the owner is cautioned to adjust subsequent garage rents to 
          an amount no greater than that determined  by  this  order  plus  any
          lawful increases, and to register the garage rents  with  this  order

          DOC. NOS.: BD 410182-RT et al.
          and opinion being given as the explanation for the registration.

          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 judgment or not in 
          excess of twenty percent per month thereof may be offset against  any
          rent thereafter due the owner.

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

          ORDERED, that this petition be, and the same hereby is,  granted  and
          the District Rent Administrator's order be and the  same  hereby  is,
          modified in accordance with  this  order  and  opinion.   The  lawful
          stabilization garage rents are  established  on  the  attached  chart
          which is fully made a part of this order.  The  amount  of  the  rent
          overcharge through June 30, 1985 is $5415.20.

                                             ELLIOT SANDER
                                             Deputy Commissioner


                              ADMINISTRATIVE REVIEW BUREAU
                                   COVERING MEMORANDUM

          ARB Docket Nos.:              BD 410182-RT, BD 410061-RT

          DRO Docket No/Order No.:      TC-O83021-G, CDR 29 482

          Tenant(s):                    Jay Gould

          Owner:                        Sherman Tower Realty Associates

          Code Section:                 2520.6 and 2526.1 of the RSC

          Premises:                     Garage Space GA26 at 363 East 
                                        76th Street, New York, N.Y.
                           ORDER AND OPINION GRANTING PETITION
                                FOR ADMINISTRATIVE REVIEW

               Petition granted on basis that there was common ownership  of
               subject building and garage operation so that  garage  spaces
               are subject to Rent Stabilization guideline increases.


          Processing Attorney:                                             

          Supervising Attorney:                                           

          Deputy Counsel:                                                  

          Deputy Commissioner:                                             

          Mailed copies of Order and Determination to:
                           Tenant's Atty             
                           Owner's Atty              

                           Date:              :  by               

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