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


          APPEAL OF                               ADMINISTRATIVE REVIEW
                                                  DOCKET  NOS:  BB110076RO;
               83-10 35th Avenue Owners Corp.     D.R.O. DOCKET NO: 
                         and                      Q-3121749-RT
               Windsor Place Corp.                TENANT: Frank Schornstein



          On March 12, 1987, the above named petitioner-current own r  (83-
          10 35th Ave. Owners Corp.) filed a  Petition  for  Administrative
          Review (BB110076RO) against an order issued on February 4,  1987,
          by the District  Rent  Administrator,  10  Columbus  Circle,  New
          York,  New  York,  concerning  housing  accommodations  known  as
          apartment 6R, 83-10 35 Avenue, Jackson Heights, New York.

          On February 11,  1987,  the  above-named  petitioner-prior  owner
          (Windsor Place Corp.) filed a Petition for Administrative  Review
          (BB110171RO) against the same order.

          The  issue  in  these  appeals  is  whether  the  District   Rent
          Administrator's order was warranted.

          The applicable section of the law is Section 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 appeals.

          This proceeding  was  commenced  on  February  17,  1984  by  the
          tenant's filing of a fair market rent appeal with  the  New  York
          City Conciliation and Appeals Board, the agency formerly  charged
          with enforcing the Rent Stabilization Law.

          In response, the prior owner contended in substance that prior to 
          the complaining tenant's occupancy,  the  subject  apartment  was
          Docket No. BB110076RO         - 2 -

          On October 10, 1986, both  the  current  and  prior  owners  were
          served with a copy of the tenant's fair market rent  appeal,  and
          were requested to  submit  comparability  data  (rents  generally
          prevailing  for  substantially  similar  housing   accommodations

          located in the subject premises and  in  the  same  area  as  the
          subject premises).

          On October 25, 1986, the current owner submitted  its  answer  to
          the tenant's appeal and contended in substance that  the  subject
          premises was acquired in 1985,  that  the  subject  premises  was
          located in one of the finest areas of the city, that the  current
          maintenance fee was $609.00, and that the rent ($550.36)  charged
          by the prior owner was below market  and  fair.   In  support  of
          these contentions, the current owner submitted a  rent  roll  for
          the five apartments of the subject building in the same  line  as
          the subject apartment;  a  notice  of  Maximum  Collectible  Rent
          Effective January 1, 1983; 1983 Maximum Base Rent Master Building 
          Rent Schedule dated February 25, 1983;  leases  for  the  subject
          apartment covering  the  period  from  October  1,  1982  through
          September 30, 1987; and portions of the Cooperative Offering Plan 
          for the subject premises.

          On November 3, 1986, both  the  current  and  prior  owners  were
          served with a Summary Notice which advised the  owners  that  the
          fair market rent for the subject apartment would be determined on 
          the basis of the 1982 maximum rent increased by  the  appropriate
          Special  Fair  Market  Rent  Guidelines  order.   Neither   owner
          submitted a response to this summary notice.

          On December 29, 1986, a second Summary Notice was mailed  to  the
          current  and  prior  owners.   In  response,  the  current  owner
          reiterated its previous answer of October 25, 1986 and  contended
          in substance that setting the fair market rent using the  special
          guidelines would result in a rent that is below cost.

          In Order Number CDR 28,916 issued February 4, 1987, the  District
          Rent Administrator established the fair market  rent  as  $255.82
          using Special Guidelines Order Number 14 and directed the current 
          and prior owners to refund their respective shares of the  excess
          rent ($12,676.08) collected from October 1, 1982 through  January
          31, 1987.  The amount of $12,676.08 includes excess security.

          The prior  owner  in  its  petition  states  as  follows:"We  are
          estopped from a challenge to this proceeding inasmuch  as  we  no
          longer have the tenant's rent records available to us due to  the
          sale of the premises".

          The current owner in its petition reiterates its previous  answer
          of October 25, 1986 and further contends that ordering  the  rent
          to be reduced to a level which is below the cost  of  maintenance
          is clearly arbitrary and capricious; the tenant and  prior  owner
          negotiated the fair market value of the apartment in light of the 
          Docket No. BB110076RO         - 3 -

          circumstances then prevailing and the current market  rents;  and
          the order here  under  review  imposes  an  arbitrary  percentage
          increase above the rent  control  level.   In  support  of  these
          contentions,  the  current  owner  submits  Scheduled  A  of  the
          Cooperative  Offering  Plan  which  lists  estimated  maintenance
          charges for the apartments of the subject premises.

          In response, the tenant contends in substance  that  the  owner's
          petition should be denied.

          The Commissioner is of the opinion that these petitions should be 

          Section  26-516  of  the  Rent  Stabilization  Law  provides,  in
          pertinent part, that fair market rent adjustment applications are 
          to  be  determined  by  the  use  of  special  fair  market  rent
          guidelines  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  DHCR's
          procedure for fair market rent appeal cases filed prior to  April
          1, 1984 to allow owners to  submit  June  30,  1974  free  market
          rental data for complete lines of apartments, beginning with  the
          subject line. The average of such comparable rentals will then be 
          updated by  annual  guidelines  increases.   Alternatively,  DHCR
          procedure allows owners to have comparability determined  on  the
          basis of rents charged after June 30, 1974.  In order to use this 
          method, owners were required prior to November 1, 1984 to  submit
          rental history data for all stabilized apartments in the  subject
          premises and subsequent to November 1, 1984 to submit  such  data
          for complete lines  of  apartments  beginning  with  the  subject
          line.  Post-June 30, 1974 rent  data  will  be  utilized  if  the
          comparable apartment was rented  to  a  first  stabilized  tenant
          within one year of the renting of the subject  apartment  and  if
          the owner submits proof of service of an initial legal  regulated
          rent  notice  (DC-2  Notice)  or  apartment   registration   form
          indicating that the rent is not subject to challenge.

          The evidence of record in the instant case  indicates  that  both
          the current and  prior  owners  failed  to  submit  the  required
          comparability  data  as  listed  above   although   given   ample
          opportunity to do so.  Thus, it was proper for the  Administrator
          to determine the fair market rent of the subject apartment solely 
          on the basis of the Special Fair Market Rent Guidelines Order 14.

          With  regard  to  the  prior  owner's  contention  that  it   was
          prohibited from challenging this proceeding because it no  longer
          has  any  rent  records  concerning  the  subject  premises,  the
          Commissioner notes that  the  prior  owner  participated  in  the
          proceeding before the Administrator by submitting  an  answer  to
          the tenant's complaint in December of 1984 while it  still  owned
          Docket No. BB110076RO         - 4 -

          the subject premises, and that the prior  owner  ignored  several
          notices to submit comparability  data.   Accordingly,  the  prior
          owner is hereby directed to refund to the tenant the excess  rent
          it collected  from  October  1,  1982  through  May  31,  1985  -
          $9825.76.  If the prior owner fails to refund to the  tenant  the
          excess rent of $9825.76, the tenant is advised to proceed against 
          the prior owner in a court of competent jurisdiction.

          The current owner is directed to roll back the rent to the lawful 
          stabilized rents 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 collected by the current owner from  June  1,  1985  through
          January 31, 1987 - $2850.32.

          In the event the current owner does not take  appropriate  action

          to comply within sixty (60) current days from the  date  of  this
          order, the tenant may credit the excess rent ($2850.32) collected 
          by the current owner against the next months(s) rent until  fully

          Because this determination concerns  lawful  rents  only  through
          January  31,1987,  the  current  owner  is  cautioned  to  adjust
          subsequent rents to an amount no greater than that determined  by
          the Administrator's  order  plus  any  lawful  increases  and  to
          register any adjusted rents with the Administrator's order  being
          given as the explanation for the adjustment.

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

          THEREFORE,  in  accordance  with  the  provisions  of  the   Rent
          Stabilization Law and Code, it is 

          ORDERED, that the current  owner's  petition  be,  and  the  same
          hereby is, denied, that the prior owner's petition  be,  and  the
          same  hereby   is,   denied,   and   that   the   District   Rent
          Administrator's order be, and the same  hereby  is,  modified  in
          accordance this order and opinion.  The total  amount  of  excess
          rent owed to the tenant by the  prior  owner  is  $9825.76.   The
          total amount of excess rent owed to the  tenant  by  the  current
          owner is $2850.32.  The monthly lawful stabilization rent  as  of
          February 1, 1987 is $306.51.

                                                  ELLIOT SANDER
                                                  Deputy Commissioner

TenantNet Home | TenantNet Forum | New York Tenant Information
DHCR Information | DHCR Decisions | Housing Court Decisions | New York Rent Laws
Disclaimer | Privacy Policy | Contact Us

Subscribe to our Mailing List!
Your Email      Full Name