BG 110036 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. BG 110036 RO
                                              :  DRO DOCKET NO. TC-071445-G
               PLAZA REALTY INVESTORS            TENANT: LARISA BERSHTEYN

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

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN 
          PART


               On July 3, 1987, the  above-named  petitioner-owner  filed  a
          Petition for Administrative Review against an order issued on June 
          5, 1987, by the Rent Administrator, 10 Columbus Circle, New  York,
          New York, concerning the housing  accommodations  known  as  64-35
          Yellowstone Blvd., Queens, New York, Apartment No. 4P, 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 June 1982, by the 
          filing of a rent overcharge complaint  by  the  tenant  who  first
          moved to the subject apartment on November 1, 1981 at a rental  of
          $510.00  per  month.   In  answer  to  the  complaint,  the  owner
          submitted  a  complete  rental  history  as  required.    It   was
          established that the tenant herein vacated the  subject  apartment
          as of January 1, 1985 and that the  subject  apartment  is  now  a
          cooperative apartment.

               In  Order  Number   TC-071445-G,   the   Rent   Administrator
          determined that the tenant had been overcharged in the  amount  of
          $1442.94 including interest on  that  portion  of  the  overcharge
          occurring on and after April 1,  1984,  and  excess  security  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
          include a 4% electrical inclusion adjustment pursuant to Guideline 
          9 to which it was entitled and also failed to include the prior 








          BG 110036 RO

          tenant's last  renewal  lease  commencing  July  1,  1981  in  the
          calculation of  the  lawful  stabilization  rent  for  the  tenant
          herein.

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

               An examination of the records in this case discloses that the 
          owner is correct in its contention  that  the  Rent  Administrator
          failed to credit it with  a  4%  electrical  inclusion  adjustment
          under Guideline 9 to which it was entitled since  electricity  was
          included in the rent and the owner had  not  taken  an  electrical
          inclusion adjustment under any  prior  guidelines.   However,  the
          Rent Administrator correctly did not include  the  prior  tenant's
          last renewal lease commencing July 1, 1981 since an examination of 
          the rent ledgers submitted by the owner discloses that said  prior
          tenant vacated in August 1981, so that the renewal  lease  was  in
          effect less than three months.  It is Division policy that a lease 
          rent in effect for three months or less cannot be used to  support
          a rent increase. (Accord: AK 410186-RO).  Based on the  foregoing,
          the monthly lawful stabilization rents for the tenant  herein  are
          as follows: $493.28 effective November 1, 1981 to October 31, 1982 
          and $537.68 effective November 1, 1982 to December 30,  1984  when
          the tenant vacated.  Since  the  owner  in  fact  charged  $510.00
          effective November  1,  1981  to  October  31,  1982  and  $555.90
          effective November  1,  1982  to  December  30,  1984,  the  total
          overcharge  from  November  1,  1981  through  December  30,  1984
          including interest on that portion of the overcharge occurring  on
          and after April 1, 1984  but  not  including  excess  security  is
          $679.37.

               This order may upon the expiration of the period in which the 
          owner may institute a proceeding pursuant to  Article  78  of  the
          Civil Practice Law and Rules, be filed and enforced as a judgment.

               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 in part, and, that the  order  of  the
          Rent Administrator  be,  and  the  same  hereby  is,  modified  in
          accordance with this order and opinion.  The amount  of  the  rent
          overcharge through December 30, 1984 is $679.37.

          ISSUED



                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner




                     








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