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

          APPEAL      OF                                   DOCKET       NO.:
                                                 BD 410508 RO 
                                              :    D.R.O.    DOCKET    NOS.:
                                                 CDR 29,245 
           MILFORD             MANAGEMENT             CORP.,             FOR
           LINCOLN                     PLAZA                     ASSOCIATES,
                                                 TENANT:    IRMA    KINGSLEY
                                 PETITIONER   :  


               On April 9, 1987 the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review  against  an  order  issued  on
          March 5, 1987 by the  District  Rent  Administrator,  10  Columbus
          Circle, New  York,  New  York  concerning  housing  accommodations
          known as Apartment 35-U at 20 West 64th Street, New York, New York 
          wherein the District Rent Administrator determined that the  owner
          had overcharged the tenant. 

               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
          provision  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 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  by  the  filing  of  a  rent
          overcharge complaint on February 21, 1984 by the tenant, in  which
          she stated that she first occupied the apartment in  March,  1973,
          under a lease that commenced March 15, 1973 and  terminated  March
          31, 1975, at a rent of $430.00. 

               The owner was served with a copy of  the  complaint  and  was
          requested to submit rent records to prove the  lawfulness  of  the

          ADM. REVIEW DOCKET NO.: BD 410508 RO
          rent being  charged.   In  answer  to  the  complaint,  the  owner
          submitted  a  complete  rental  history  from  the  base  date  as

               In Order Number CDR 29,245, the District  Rent  Administrator
          determined that the tenant had been overcharged in the  amount  of
          $456.08 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 overcharge, in that it was entitled to collect  a  2%
          fuel cost adjustment beginning on March 1, 1979 in addition  to  6
          1/2% for the tenant's two-year renewal lease commencing  April  1,
          1979; that all of the Administrator's calculations from that lease 
          term forward are inaccurate, due to the omission of  the  2%  fuel

               In answer to the petition,  the  tenant  contended  that  the
          Guideline 10(b) fuel adjustment was extended beyond the  allowable
          lease term, and that the increase on  all  succeeding  leases  has
          been based erroneously on the total of  the  rent  plus  the  fuel
          adjustment increase. 

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

               A  review  of  the  record  indicates   an   error   in   the
          Administrator's rent calculation  chart  resulting  not  from  the
          omission of the fuel surcharge, which  was  calculated  separately
          from the overcharge, but from utilizing an incorrect amount as the 
          amount charged for the tenant's lease commencing  April  1,  1979.
          The Administrator used the amount of $535.52 as the  rent  charged
          for that lease and as the base rent  for  calculating  the  lawful
          stabilized rent for the subsequent lease, rather than the  correct
          amount of $540.59, which included the 1%  Guideline  10a  increase
          and which was the amount actually charged (not including the  fuel

               It  is  further  found  that  the  Administrator's   separate
          calculation of the fuel surcharge did not  correctly  reflect  the
          amount charged by the owner and to which the owner  was  entitled.
          The owner collected and was entitled to a 2% increase pursuant  to
          Guideline 10b for the tenant's lease term from April  1,  1979  to
          March 31,  1981.   Regarding  the  tenant's  contention  that  the
          Guideline 10b fuel adjustment was extended  beyond  the  allowable
          lease term, the Commissioner finds that  the  evidence  of  record
          supports the petitioner's contention that it properly applied  the
          2% Guideline 10b fuel adjustment for only the  lease  period  from
          April 1, 1979 through March 31, 1981.   

               The lawful stabilization rent is recalculated on the attached 
          rent calculation chart, which is fully made a part of this  order.
          No overcharge is found.

               If the owner has already complied  with  the  Administrator's

          ADM. REVIEW DOCKET NO.: BD 410508 RO
          order and there are arrears due to the owner as a  result  of  the
          instant determination, the tenant may pay the  arrears  in  twelve
          (12) equal monthly installments.  Should the tenant  vacate  after
          the  issuance  of  this  order,  said  arrears  shall  be  payable

               THEREFORE, pursuant to the Rent Stabilization Law  and  Code,
          it is

               ORDERED, that this Petition  be,  and  the  same  hereby  is,
          granted, and that the  Administrator's  order  be,  and  the  same
          hereby is, revoked. 


                                          ELLIOT                      SANDER
                                          Deputy Commissioner



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