BE 210237 RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK   11433

          APPEAL OF                               DOCKET NO.:  BE 210237 RO

                    VANDERVEER ASSOCIATES,
                                                  DRO DOCKET NO.: K 3124889 R



          On May 18, 1987 the above named petitioner-owner filed a Petition 
          for Administrative Review against an order issued  on  April  15,
          1987, by the  District  Rent  Administrator,  concerning  housing
          accommodations known as 1372 New York Avenue, Brooklyn, New  York
          Apartment 1-F.

          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.

          The  tenant  initiated  this  proceeding  by  filing  a  Tenant's
          Complaint of  Rent  Overcharges  on  March  28,  1984.   Attached
          thereto, is the lease for the  subject  apartment  for  the  term
          beginning June 1, 1983 and ending on May 31, 1984  at  a  monthly
          rent of $409.26.  Said lease, dated May 19,  1983,  reflects  the
          owner's address as 3301 Foster Avenue, Brooklyn, New York.

          A  copy  of  the  tenant's  complaint  form,   filed   with   the
          Conciliation and Appeals Board (CAB), was forwarded to the owner, 
          at 3301 Foster Avenue, Brooklyn, New York, on February  26,  1985
          for response.

          A Final Notice of Pending Default was mailed to the owner at  the
          same address on June  4,  1986.   The  owner,  however,  did  not
          respond below except that on June 6, 1986, the owner advised  the
          District Rent  Administrator  that  the  tenant  moved  from  the
          subject apartment on November 30, 1985.

          On  July  24,  1986,  the  tenant  advised  the   District   Rent
          Administrator that she vacated the subject apartment in November, 
          1985 and that all mail  was  to  be  forwarded  to  a  tenant  in
          another apartment in the subject premises.

          The appealed order of the District Rent Administrator  determined
          that the tenant had been overcharged $446.47  including  interest
          and excess security, from June  1,  1983,  through  November  30,
          1985, when the tenant vacated and  also  established  the  lawful

          BE 210237 RO
          stabilized rent of $393.52 per month, under the lease dated  June
          1, 1983 to May 31, 1984.

          In this petition, the owner contends, in substance, that evidence 
          was not presented in this proceeding because an  improper  person
          was notified by the Division of  Housing  and  Community  Renewal
          (DHCR); and that the rent of $402.61  was  not  subject  to  DHCR
          review as it was set by the Department  of  Housing  Preservation
          and Development (HPD) by an order issued  on  January  24,  1983,
          pursuant to Article 15 of the Private Housing Finance Law.

          The file does not contain any response by the tenant.

          The Commissioner is of the opinion that this petition  should  be

          A review of the registration history  for  the  subject  building
          shows that the owner is listed  as  Vanderveer  Associates,  3301
          Foster Avenue, Brooklyn, New York, as of April 1, 1986.

          The Commissioner notes that  every  document  or  notice  in  the
          District Rent Office (DRO)  file  (excepting  the  District  Rent
          Administrator's order)  refers  to  Vanderveer  Associates,  3301
          Foster Avenue, Brooklyn, New York, as the owner  of  the  subject

          The District Rent Administrator's order is  addressed  to  Marvin
          Katz at the same address leading to  the  ineluctable  conclusion
          that the order was received by the owner nonetheless, as  it  was
          not returned by the United State Post Office as undeliverable  as
          addressed and the owner was able to timely file its appeal.

          Therefore, the Commissioner finds that the owner (Vanderveer) was 
          properly served by the District Rent Administrator.

          Despite this, the owner relied on its erroneous belief  that  the
          tenant's vacating of the subject apartment obviated any  need  to
          present evidence in answer to the complaint.

          The record shows that the owner responded to the final notice  of
          pending default, dated June 19, 1986, by noting only the tenant's 
          removal and the file is lacking the owner's submission of  leases
          or a rental history as requested.

          However, the owner's appeal contains  a  copy  of  an  Order  and
          Report of Setting of  Initial  Regulated  (Stabilized)  Rent  and
          Services  from  the  City  of  New  York  Department  of  Housing
          Preservation and Development, dated January 24, 1983, pursuant to 
          Article 15 of the  Private  Housing  Finance  Law,  (PHFL)  which
          determined that effective February 1, 1983 the new  initial  rent
          for the apartment will be $552.58 per month.  This order  further

               "As a condition of the agency  providing  financing  for
               the rehabilitation, the Landlord has  agreed  to  charge
               the present tenant in  occupancy  the  initial  rent  of
               $402.61 per month.  Upon terminating  the  occupancy  of
               the present tenant,  the  initial  rent  ordered  above,

          BE 210237 RO
               $552.58 per month, plus appropriate  Rent  Stabilization
               increases, may be chargeable by the Landlord."

          Section 2521.1(f) of the  Rent  Stabilization  Code  provides  in
          pertinent part:

               (f) Notwithstanding the provisions  of  any  outstanding
               lease or  other  rental  agreement,  the  initial  legal
               registered  rent  for  a  housing  accommodation  in   a
               multiple dwelling for which a loan  is  made  under  the
               PHFL shall be the initial rent established  pursuant  to
               such law.

          Although the District Rent Administrator properly determined  the
          tenant's complaint on the basis of the evidence of record  before
          the Administrator, based on the evidence submitted an appeal,  it
          appears that the owner did not charge the subject tenant  a  rent
          in excess of the rent allowable under the order issued by HPD  on
          January 24, 1983.  As such, no overcharge occurred.

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

          ORDERED, that this petition be, and the same hereby  is,  granted
          and that the District Rent Administrator's order be, and the same 
          hereby is, revoked.  The tenant shall pay any arrears arising  as
          a result of this order and opinion within 30 days of the issuance 
          date below.

                                                  ELLIOT SANDER
                                                  Deputy Commissioner

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