BF 210285 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
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IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO. BF 210285 RO
: DRO DOCKET NO.TC-48272-G
IOWA LEASING COMPANY TENANT: LAWRENCE SAPP
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On June 29, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on June
1, 1987, by the Rent Administrator, 10 Columbus Circle, New York,
New York, concerning the housing accommodations known as 2401
Nostrand Avenue, Brooklyn, New York, Apartment No. 5C, wherein the
Rent Administrator determined that the owner had overcharged the
tenant.
The Administrative Appeal is being determined pursuant to the
provisions of Section 2526.1 of the Rent Stabilization Code.
The issue herein is whether the 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 originally commenced in August, 1979, by
the filing of a rent overcharge complaint by the tenant. In
answer to the complaint, the owner submitted a complete rental
history for the subject apartment.
In Order Number CDR 30,434, the Rent Administrator determined
that the tenant had been overcharged in the amount of $1,139.22
and directed the owner to refund such overcharge to the tenant.
In this petition, the owner contends in substance that there
is no rent overcharge in that the Rent Administrator failed to
allow the rent increases provided in the last two years of the
complaining tenant's three year vacancy lease which commenced on
November 1, 1978, even though such rent increases were provided
for in the lease and even though the final rent called for in the
lease - $267.39 - was still under the Guideline 10 lease increase
applicable at the November 1, 1978 lease commencement.
The Commissioner is of the opinion that this petition should
be granted.
BF 210285 RO
An examination of the records in this case discloses that the
owner is correct in its contention that the lease commencing
NOvember 1, 1978, and terminating October 31, 1981, was a
graduated lease calling for rents of $257.39 effective November 1,
1978, $262.39 effective November 1, 1979, and $267.39 effective
November 1, 1980. Such amounts included a rent increase of $8.39
for a new refrigerator. An examination of the records further
discloses that increases for the last two years of this lease were
disallowed by the Rent Administrator, and on that basis, the Rent
Administrator determined that a rent overcharge had occurred.
However, it is noted that the lawful stabilization rent
immediately prior to the November 1, 1978 lease was $237.90.
Pursuant to Guideline 10, the owner was entitled to an increase of
14% over $237.90 ( 8 1/2% guideline, 1/2% electric allowance and
5% vacancy allowance) plus $8.39 for the new refrigerator making
the allowable rent $279.60 effective November 1, 1978. Since the
graduated lease rents of $257.39, $262.39, and $267.39 were all
lower than $279.60. the owner was limited to the rents charged and
no overcharge should have been found by the Rent Administrator.
In addition, the owner was permitted to, and did in fact, charge
temporary fuel surcharges during this period. The rent was then
increased to $320.87 effective November 1, 1981 due to a 20%
increase ( 16% and 4% electric allowance) for a three year renewal
lease pursuant to Guideline 14; then increased to $327.38
effective December 24, 1982 due to a major capital improvement
rent increase; then increased to $356.84 effective November 1,
1984 due to a 9% increase for a two year renewal lease pursuant to
Guideline 16; and then increased to $389.96 effective November 1,
1986 due to a 9% increase for a two year renewal lease pursuant to
Guideline 18. Accordingly, no rent overcharge occurred.
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 12 equal monthly installments. Should the
tenant vacate after the issuance of this order or have already
vacated, said arrears shall be payable immediately.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that this petition for administrative review be, and
the same hereby is, granted, and, that the order of the Rent
Administrator be, and the same hereby is, revoked, and it is found
that no rent overcharge occurred.
ISSUED
ELLIOT SANDER
Deputy Commissioner
BF 210285 RO
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