BF 210276 RO
          BF 210249 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 NOS.: BF 210276 RO
                                                               BF 210249 RO

                PAUL MANAGEMENT COMPANY,                       TC-062836-G
                                                  DRO DOCKET NO.: CDR 30,319

                                  PETITIONER      TENANT:  THOMAS CONNIFF
          ----------------------------------X                                   


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                       IN PART


          On June 19, 1987, the above-named petitioner-owner filed a Petition 
          for Administrative Review (which was docketed under two numbers but 
          merged herein for purposes of review) against an order issued on 
          May 15, 1987 by the Rent Administrator, 10 Columbus Circle, New 
          York, New York, concerning the housing accommodations known as 880 
          68th Street, Apartment 4G, Brooklyn, New York wherein the  
          Administrator determined that an overcharge had occurred.

          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 by the filing of a rent 
          overcharge complaint on June 4, 1982.

          A copy of the complaint along with answer forms was served on the 
          owner.

          In response, the owner stated that the tenant's rent was based upon  
          a base rent established pursuant to CAB opinion number 9880 plus 
          applicable guideline increases and included an additional fee 
          ($45.07) for a garage space.

          In reply, the tenant questioned the accuracy of the figures 
          presented by the owner, alleging that he had paid $23.64 for a 
          garage space as a separate fee since before he became the tenant of 
          record of the subject apartment.












          BF 210276 RO
          BF 210249 RO


          In the order here under review, the Administrator established the 
          legal stabilized rent at $382.50 for the period July 1, 1985 
          through June 30, 1987 including a parking space as part of the base 
          rent, and directed the owner to refund an overcharge of $5,090.63 
          inclusive of excess security and interest on the overcharge 
          occurring on and after April 1, 1984.

          In the appeal, the owner contends that since a parking space fee 
          was not included in the prior tenant's rent, the Administrator 
          erred in failing to take into account the rental value of the 
          parking space which the owner asserts it set at market value.  
          Alternatively, the owner contends that it should be entitled to 
          collect the rental value of the parking space based upon the value 
          of the space in 1979 augmented by relevant guideline increases.  In 
          this argument, the owner concedes that an overcharge determination 
          is appropriate but that treble damages are unwarranted.  The owner 
          further contends that the Administrator erred in finding that the 
          tenant paid $447.14 during the period July 1, 1986 through June 30, 
          1987 because the tenant relinquished the parking space on July 1, 
          1986 and the owner reduced the rent by $29.89.  Correction of this 
          error should result in a reduction of any overcharge to be 
          refunded.  Finally, since it appears that the tenant has vacated 
          the subject apartment and the tenant's wife remains in occupancy, 
          the owner requests instructions as to whom the refund should be 
          paid.

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

          Review of the record reveals that parking was not included in the 
          base rent of the subject apartment but was previously an ancillary 
          service provided to this tenant for an additional fee before 
          inclusion in the tenant's initial lease for this apartment.  
          Consequently, the Administrator should have made provision for the 
          parking fee in computing the lawful rent.  The Commissioner finds 
          that the owner was entitled to a guideline increase on the parking 
          as included in the initial lease.  In the rent calculation chart 
          attached hereto and fully made a part of this order, the 
          Commissioner amends the lawful stabilization rent and modifies the 
          overcharge amount to be refunded.

          Section 2526.1 of the Rent Stabilization Code provides for a 
          penalty of either treble damages or interest.  The Commissioner 
          finds that the issue of treble damages as raised by the owner is 
          mooted by the Administrator's assessment of interest on the 
          overcharge.
          There being no evidence that the tenant actually paid $447.14 per 
          month from July 1, 1986 through June 30, 1987, the Commissioner 
          accepts the amount as alleged by the owner.







          BF 210276 RO
          BF 210249 RO

          With regard to the question of whom the overcharge should be paid 
          to, the Commissioner directs that any refund check be made payable 
          to Mr. and Mrs Conniff jointly.

          Because this determination concerns lawful rents only through June 
          30, 1987, the owner is cautioned to adjust subsequent rents to an 
          amount no greater than that determined by the Rent Administrator's 
          order plus any lawful increases.

          This order may, upon the expiration of the period in which the 
          owner may institute a proceeding pursuant to Article Seventy-Eight 
          of the Civil Practice Law and Rules, be filed and enforced in the 
          same manner as a judgment or not in excess of twenty percent per 
          month thereof may be offset against any rent thereafter due the 
          owner.

          If the owner has already complied with the Rent Administrator's 
          order and there are arrears due to the owner as a result of the 
          instant determination, the tenant is permitted to pay off the 
          arrears in 24 equal monthly installments.  Should the tenant vacate 
          after the issuance of the order or have already vacated, said 
          arrears shall be payable immediately.

          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 the Rent Administrator's order be, and the same hereby 
          is, modified in accordance with this Order and Opinion.  The amount 
          of the rent overcharge through June 30, 1986 is $1,966.80.




          ISSUED:

                                                  ------------------------
                                                  JOSEPH A. D'AGOSTA
                                                  Acting Deputy Commissioner
           
             
                                             






    

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