ADM. REVIEW DOCKET NO. BG 410416-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. BG 410416-RO
D.R.O. DOCKET NO.
: ZL-003563-R
PAN AM EQUITIES, INC. - OWNER
Scott and Heidi Lazare -
Tenants
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On July 2, 1987, the above-named petitioner filed a Petition
for Administrative Review against an order issued on May 26, 1987
by the Rent Administrator, 92-31 Union Hall Street, Jamaica, New
York concerning the housing accommodation known as 330 East 39th
Street, Apartment No. 6L, New York, New York wherein the
Administrator directed the owner to roll back the rent and to
refund overcharges of $3,704.66 inclusive of excess security and
interest on the overcharge occurring on or after April 1, 1984.
The tenant commenced this proceeding on September 5, 1985 by
filing a complaint of rent overcharge.
A copy of the complaint was served on the owner on September
13, 1985.
In the order issued on May 26, 1987, the Administrator
established the legal regulated rent at $1,628.89 as of July 1,
1986 and directed the owner to refund $3,704.66.
In the appeal, the owner requests modification of the order.
The owner contends that the Administrator failed to take into
account the renewal lease of the prior tenant and the subject
building's 421a tax status.
On October 14, 1987, the petitioner herein submitted a copy
of a stipulation of settlement in which the owner agreed to refund
$3,340.29 and to withdraw with prejudice its Petition for
Administrative Review, the tenant agreed to withdraw the complaint
with prejudice, and the owner and the tenant agreed that the legal
regulated rent at the time the tenant first took occupancy was
$1,564.03.
The Commissioner deems the settlement submitted a supplement
to the petition and is of the opinion that the petition be
ADM. REVIEW DOCKET NO. BG 410416-RO
granted.
Since, in the instant case, the Administrator has made a
finding and issued an order, the terms of the settlement are
subject to careful scrutiny to determine if the complainant is
receiving fair treatment and if the rent agreed upon is justified.
A careful review of the record reveals that the prior tenant
renewed its lease for a one year term commencing August 1, 1984 at
a monthly rent of $1378.00. Accordingly, the complainant's lawful
stabilized rent as herein recomputed should have been $1564.03.
(prior tenant) - Guideline 15: September 30, 1983 rent
$1325.00 plus 4% for one year renewal lease = $1378.00.
Lazare - Guideline 16: September 30, 1984 rent $1378.00 plus
13.5% (6% + 7.5%) for a one year vacancy lease = $1564.03. The
rent agreed upon does not take into account 2.2% rent increases
permitted pursuant to Section 421a. The Commissioner notes that
where the actual rent charged is less than the rent with maximum
allowable increases, the lawful stabilization rent is limited to
the rent that was charged.
Accordingly, the Commissioner finds that the rent agreed upon
in the settlement should be substituted for the legal stabilized
rent as determined by the Administrator.
The Commissioner further notes that the complainant was
represented by counsel during the settlement negotiations and that
the complainant vacated before the termination of the lease.
Therefore, the Commissioner finds that the complainant is not
prejudiced by the refund amount which was agreed upon.
Therefore, the Commissioner finds that the petition should be
granted to the extent of accepting the legal stabilized rent as
correct as set forth in the settlement and withdrawing with
prejudice both the complaint and the PAR.
Since the complainant has vacated, a copy of this order is
being sent to the current tenant.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
ORDERED, that this petition be, and the same hereby is,
granted in accordance with this order and opinion.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
ADM. REVIEW DOCKET NO. BG 410416-RO
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