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

          APPEAL OF                              DOCKET  NO.:  BD  410487-RO
                                              :  D.R.O.  DOCKET  NO.:  41560
              F.R.H.             REALTY              CO.,              INC.,
                                                 TENANT: PATRICK WALDRON 

                                 PETITIONER   :  

            IN PART

               On April 20, 1987 the above-named  petitioner-owner  filed  a
          Petition for Administrative Review  against  an  order  issued  on
          March 17, 1987 by the District  Rent  Administrator,  10  Columbus
          Circle, New  York,  New  York  concerning  housing  accommodations
          known as Apartment 4E at 405 East 72nd Street, New York, New  York
          wherein the District Rent Administrator determined that the  owner
          had overcharged the tenant. 

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

               The applicable sections of the Law are Section 26-516 of  the
          Rent Stabilization Law, Section  2526.1(a)  of  the  current  Rent
          Stabilization Code and Section 21 of the former Rent Stabilization 

               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 originally commenced  by  the  filing  in
          December,  1984  of  a   Tenant's   Objection   to   Rent/Services

               The owner was served with a copy of  the  objection  and  was
          requested to submit rent records to prove the  lawfulness  of  the
          rent being  charged.   In  answer  to  the  complaint,  the  owner
          submitted leases from 1975 and rent ledgers from January  1980  to
          December, 1984; and stated that the rent of $498.56 in the lease 

          commencing December 1, 1981 included a fuel charge of  $12.00  and
          an  additional  5%  subletting  charge  of  $20.37.   The  ledgers

          ADM. REVIEW DOCKET NO.: BD 410487-RO
          mentioned periods of sublet and showed an increased  rent  charged
          during them.  

               In an order issued  on  March  17,  1987  the  District  Rent
          Administrator stated that the owner had failed to submit proof  of
          sublet; determined that the tenant had  been  overcharged  in  the
          amount of $2,056.15 as of November  30,  1986;  and  directed  the
          owner to refund such overcharge to the tenant as well as to reduce 
          the rent.  

               In this petition, the owner contends in substance that  there
          was no rent overcharge in that it is now  submitting  evidence  of
          subletting.  With its petition  the  owner  has  enclosed  several
          letters from the tenant regarding subletting as  well  as  a  1982
          check from a subtenant.

               The Commissioner is of the opinion that this petition  should
          be granted in part.

               The $441.79 rent being charged on the April 1, 1980 base date 
          consisted of a permanent rent  of  $403.52  pursuant  to  a  lease
          commencing December 1, 1978 as retroactively increased to  $407.57
          when Guideline 10a was issued; a $20.18 (5%) subletting allowance; 
          a $2.04 fuel cost adjustment pursuant  to  Guideline  10b;  and  a
          $12.00 fuel cost adjustment pursuant to  Guideline  10c.   Section
          21B of the former  Rent  Stabilization  Code  provided  that  upon
          termination of the sublease the stabilization rent would revert to 
          the renewal lease basis.  Guidelines 10b,  10c  and  10d  provided
          that the fuel cost adjustments were temporary and did  not  become
          part of the base rent.  Taking these  factors  into  account,  the
          Commissioner has recalculated the lawful stabilization  rents  and
          the amount of overcharge.  They are set forth on the amended  rent
          calculation chart attached hereto and made  a  part  hereof.   The
          overcharge  occurred  largely  because  the  owner  included   the
          temporary Guideline 10b fuel cost  adjustment  and  the  temporary
          subletting allowance in the base  rent  in  calculating  the  1981
          renewal lease.  This order differs from the Administrator's  order
          largely because that earlier order took the original  December  1,
          1978 lease rent to be the permanent rent in effect on the April 1, 
          1980 base date, even though Guideline 10a had increased the lawful 
          rent above that initially provided for in the lease.   This  order
          also finds a different overcharge  during  a  1982  subletting  by
          referring to the  rents  shown  in  the  rent  ledger,  while  the
          Administrator's order assumed that only the lease  rent  was  paid
          from 1981 to 1984.      

               Because this order determines the lawful  rent  only  through
          November 30, 1986, the owner is cautioned to adjust the rent after 
          that date to amounts no greater than that determined by this order 
          plus any lawful increases, and to register any adjusted rents with 
          this order being given as the reason for the adjustment.   Because

          ADM. REVIEW DOCKET NO.: BD 410487-RO
          of the possibility that the tenant herein may have vacated by  the
          time  that  this  determination  is  issued,  a   copy   of   this
          determination is being mailed to the tenant-in-occupancy.     

               If the owner has already complied  with  the  Administrator's
          order and there are arrears due to the owner as a  result  of  the
          present determination, the owner is directed to allow  the  tenant
          to pay off the arrears in six equal monthly installments.   Should
          the tenant vacate after  the  issuance  of  this  order,  or  have
          previously vacated, said arrears shall be payable immediately. 

               This order may, upon the expiration of the  period  in  which
          the owner may institute a proceeding pursuant to Artic e  seventy-
          eight of the civil practice law and rules, be filed  and  enforced
          by the tenant in the same manner as a judgment or not in excess of 
          twenty percent thereof per month may be offset  against  any  rent
          thereafter 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,
          granted in part and that the District Rent  Administrator's  order
          be, and the same hereby is, modified in accordance with this Order 
          and Opinion.  The lawful stabilization rents  and  the  amount  of
          overcharge are established on the attached chart, which  is  fully
          made a part of this order.  The total overcharge, including excess 
          security of $28.10, is $1,710.86 as of November 30, 1986.   


                                          ELLIOT SANDER
                                          Deputy Commissioner


          ADM. REVIEW DOCKET NO.: BD 410487-RO


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