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

          APPEAL      OF                                   DOCKET      NO.:
                                                 BG 410132 RO   
                                                 DRO       ORDER       NO.:
               PABLO LLORENTE                                 
                                                 Tenant: Jeffrey Marcus    

                              PETITIONER      : 

                                       IN PART

               On July 8, 1987, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          June 4, 1987, by the Rent Administrator, 10 Columbus Circle,  New
          York, New York concerning the  housing  accommodations  known  as
          Apartment No. 4C at 159 West 80th  Street,  New  York,  New  York
          wherein the Rent Administrator determined the  fair  market  rent
          pursuant  to  the  Special  Fair  Market  Rent  Guideline   Order
          promulgated by the New York City Rent Guidelines Board for use in 
          calculating fair market rent appeals. 

               The  issue  in  this  proceeding   is   whether   the   Rent
          Administrator's order was warranted.

               The applicable sections of the Law are Sections  26-513  and
          26-516 of the Rent Stabilization Law.

               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 July 1984 by the 
          filing of a fair market  rent  appeal  by  the  tenant  who  took
          occupancy pursuant to a lease which commenced on July 1, 1981  at
          a rental of $475.00 per month. 

               The owner was served with a copy of the tenant's appeal  and
          afforded an opportunity to submit June 30, 1974 rental  data  for
          comparable  apartments  or  to   submit   post   July   1,   1974
          comparability date.  The owner was also afforded an opportunity 
          to submit proof that a DC-1  or  DC-2  Notice  of  Initial  Legal
          Regulated Rent (hereafter DC-2 Notice) had  been  served  on  the
          first rent stabilized tenant or a subsequent tenant and the owner 
          was also directed to submit a complete  rental  history  for  the

          ADM. REVIEW DOCKET NO.: BG 410132 RO
          subject apartment from  the  date  of  decontrol  from  the  Rent
          Control Law.  

               In  response,  the  owner  did  not  submit   the   required
          comparability data nor proof of service of the  DC-2  notice  but
          did submit a copy of the Landlord's Report of Statutory Decontrol 
          showing that the subject apartment first became  rent  stabilized
          on August 1, 1976 and submitted copies of leases for the  subject
          apartment from March 1, 1980. 

               In Order Number 011508, the  Rent  Administrator  determined
          the initial legal regulated rent by establishing  a  fair  market
          rent of $220.25 effective July 1, 1981 and directed the owner  to
          refund total excess rent of  $16,462.92  to  the  tenant  herein-
          covering the period from July 1, 1981  to  June  30,  1986.   The
          Administrator determined the fair market rent solely on the basis 
          of the special fair market rent guidelines order since the  owner
          did not supply data for a comparability study.  

               In this petition, the owner contends in substance  that  the
          Rent Administrator did not consider the 1976 Report of  Statutory
          Decontrol to establish the base date; that the  owner  was  never
          afforded the opportunity to submit comparability  data  and  that
          the Rent Administrator did  not  consider  the  leases  of  prior
          tenants in computing the legal regulated rent. 

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

               Section 26-513 of the Rent Stabilization  Code  provides  in
          pertinent part that the tenant of a  housing  accommodation  that
          was regulated pursuant to the City Rent  and  Rehabilitation  Law
          prior to July 1, 1971 and that became vacant on or after  January
          1, 1974 may  file  within  ninety  days  after  notice  has  been
          received (DC-2 Notice), an  application  for  adjustment  of  the
          initial legal regulated rent for such housing accommodation (fair 
          market rent appeal).  Section 26-513 further provides  that  fair
          market appeals are to be determined by the use  of  special  fair
          market rent guideline orders promulgated by  the  New  York  City
          Rent Guidelines Board and by the rents generally prevailing in 

          the same area for substantially similar  housing  accommodations.
          In order to determine rents generally prevailing in the same area 
          for substantially similar housing accommodations, it is Division
          policy to allow owners to submit comparability  data.   In  cases
          where the owner fails to submit the required comparability  data,
          the fair market rent is determined solely on the basis of the 
          special fair market rent guidelines order.      

               In the instant case, although the tenant herein was not  the
          first rent  stabilized  tenant,  the  owner  was  still  required
          pursuant to Section 26-513 to submit proof of service of the DC-2 
          notice  on  the  first  rent  stabilized  tenant  or   a   tenant
          subsequent thereto.  The owner did not do so  although  given  an
          opportunity to submit such proof.  Therefore  the  tenant  herein
          was entitled to file a fair market rent appeal. 

               The record discloses  that  the  owner  is  correct  in  his

          ADM. REVIEW DOCKET NO.: BG 410132 RO
          contention that the Rent Administrator  failed  to  consider  the
          1976 Report of Statutory Decontrol to establish the initial legal 
          regulated rent.  Pursuant to special Guidelines Order Number 8 in 
          effect when the first rent stabilized tenant commenced  occupancy
          on August 1,1976, the  1976  maximum  base  rent  of  $159.98  is
          adjusted by an additional 15% resulting in a fair market rent  of
          $183.98 effective August 1, 1976.  The owner is also  correct  in
          his contention that the lease of a  prior  tenant  -   the  lease
          commencing March 1, 1980 was not considered.  However  the  owner
          failed to submit copies of any leases or rent ledgers from August 
          1, 1976 to March 1, 1980 so that lawful rent increases,  if  any,
          granted  during  this  period  cannot  be   considered   in   the
          determination of the lawful  stabilization  rent  of  the  tenant
          herein.  In addition the record discloses that  contrary  to  the
          owner's  contention  on  appeal,  the  owner  was   afforded   an
          opportunity to submit comparability  data  but  did  not  do  so.
          Accordingly, the fair market rent must be  determined  solely  on
          the basis of Special  Guidelines  Order  Number  8  as  discussed

               Taking  the  aforementioned  factors   into   account,   the
          Commissioner has recalculated the lawful stabilization rents  and
          the amount of excess rent for  the  tenant  herein.   The  lawful
          stabilization rents and the amount of excess rent are  set  forth
          on the amended rent calculation chart attached hereto and made  a
          part hereof.  

               Because  this  determination  concerns  lawful  rents   only
          through  June  30,  1986,  the  owner  is  cautioned  to   adjust
          subsequent rents to an amount no greater than that determined  by
          this order plus any lawful increases and to register any adjusted 
          rents with this order and opinion being given as the  explanation
          for the adjustment.

               The  owner  is  directed  to  roll  back  the  rent  to  the
          stabilized rent consistent with this decision and  to  refund  or
          fully credit against future rents over a period not exceeding six 
          months from the date of receipt of this order,  the  excess  rent
          including excess security.  In the event the owner does not take 
          appropriate action to comply within 35  days  from  the  date  of
          issuance of this order, the tenant may  credit  the  excess  rent
          collected by the owner against the next month(s) rent until fully 

               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  to  the  extent  of  redetermining  the
          lawful  stabilization  rents  and  the  amount  of  excess   rent
          collected by the owner.  Accordingly, the stabilization rents and 
          amount of excess rent are as established on  the  attached  chart

          ADM. REVIEW DOCKET NO.: BG 410132 RO
          which is fully made a part of this order.  The amount  of  excess
          rent through June 30, 1986 is $11,231.31.


                                          ELLIOT SANDER
                                          Deputy Commissioner



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