ADM. REVIEW DOCKET NO. BF 210085 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.  BF  210085  RO
                                                       
                                              :     D.R.O.    DOCKET     NO.
                                                 K - 3102336 - R
                                                 BLANCHE  ALFANO  -   TENANT
               GEM REALTY - OWNER                      

                                              
                                 PETITIONER   :  
          ------------------------------------X 

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


               On June 2, 1987, the above-named petitioner filed a  Petition
          for Administrative Review against an order issued on May 22,  1987
          by the Rent Administrator, 10 Columbus Circle, New York, New  York
          concerning the housing accommodation known as 2246  Ocean  Avenue,
          Apartment No. 6L, Brooklyn, New  York  wherein  the  Administrator
          ordered a refund of $2,308.10 in overcharges. 

               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 on  March  31,  1984
          when the tenant filed a general complaint of rent overcharge  with
          the New York City Conciliation and Appeals Board  (CAB),  alleging
          that she moved into the subject apartment on October 7, 1978 under 
          a one-year lease at a rental of $225.00 per month; and, that  this
          lease contained no rent history rider as required by  Section  42A
          of the Code.  

               A copy of the tenant's complaint was sent to the owner,  with
          a demand for a rental history of the subject apartment.

               The owner did not respond.

               On January 13, 1986, a Notice of Pending Default, along  with
          a demand for all leases from the Base Rent Date was  sent  to  the
          owner.  In reply, the owner submitted a  rental  history,  a  rent
          roll for April 1986, and a set of  leases  commencing  October  1,
          1978.  The owner  stated  that  the  base  date  for  the  subject
          apartment was September  1,  1978,  as  the  unit  was  previously
          subject to rent control.  



               On May 22, 1987, the  Administrator  issued  the  order  here
          under review.  Based on the owner's  failure  to  provide  a  full






          ADM. REVIEW DOCKET NO. BF 210085 RO
          rental history, the  Administrator  applied  Section  42A  default
          procedures,  determining  the  lawful  stabilization  rent  to  be
          $282.29 as of October 1,  1985  through  September  30,  1987  and
          finding an overcharge of $2,308.10 inclusive  of  excess  security
          and interest on the overcharge collected  on  or  after  April  1,
          1984. 

               In the appeal, the owner contends,  in  substance,  that  the
          complainant was the first decontrolled tenant and that all  leases
          were  previously  submitted  and  that  all  rent  increases  were
          legally permissible.  The owner resubmits copies of all leases and 
          a copy of the 1978-1979 Maximum Base Rent Notice of Increase which 
          the owner concedes may not have been previously submitted. 

               The tenant did not respond to the petition although given the 
          opportunity to do so.

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

               Section 42A of the former  Rent  Stabilization  Law  requires
          that  an  owner  retain  complete  records  for  each   stabilized
          apartment in effect from the date the apartment became subject  to
          Rent Stabilization to date and to produce such records to the DHCR 
          on demand.

               Review of the record discloses that in response to  a  demand
          for all leases the owner submitted a complete set  of  leases  for
          the subject  apartment  beginning  with  the  complainant's  first
          lease.  Since  the  Administrator  was  put  on  notice  that  the
          complaining tenant was the  first  stabilized  tenant,  the  owner
          should have been asked to prove the  base  date  and  whether  the
          tenant had been served with a DC-2 Notice.  If not, the  complaint
          should have been processed as a Fair Market  Rent  Appeal  (FMRA).
          On appeal, the owner has proved the base date but  has  not  shown
          that the tenant was served with  DC-2  Notice  (which  would  have
          given the tenant 90 days in which to file a  FMRA).   Accordingly,
          the Commissioner  would  ordinarily  remand  this  proceeding  for
          processing as a FMRA.  However, after careful consideration of the 
          rental history, the Commissioner finds that the  tenant's  initial
          rent did not exceed the fair market rent.  The 1978-1979 Notice of 
          Maximum Base Rent  increase  permitted  a  maximum  base  rent  of
          $198.88.   When  the  rent  controlled  tenant  vacated  and   the
          apartment became subject to  rent  stabilization,  the  owner  was
          permitted under the Special Fair Market Rent Guidelines to add 15% 
          to the maximum base rent or $29.83 for a total  rent  of  $228.71.
          The actual rent collected at that time was below the  amount  that
          was legally permissible.  All other rent increases  have  been  in
          accord with Rent Guidelines Board orders. 





               If the owner has already complied  with  the  Administrator's
          Order and, as a result of the  instant  determination,  there  are
          arrears due to the owner from the tenant, the tenant may  pay  off
          the arrears in twelve equal monthly installments during  the  next
          twelve months.  Should the tenant vacate  after  the  issuance  of






          ADM. REVIEW DOCKET NO. BF 210085 RO
          this Order, all arrears are due immediately.

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

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

          ISSUED:





                                                                      
                                          ELLIOT SANDER
                                          Deputy Commissioner



                                          






























    

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