DHCR Decisions BC 110451-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.:                                        BC 110451-RO     WINDSOR PARK APARTMENTS                                        RENT ADMINISTRATOR'S DOCKET NO.:                        PETITIONER      28464 ----------------------------------x     TENANT: Larry Arnolds  ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW                             IN PART                                                                 On  March  24,  1987,  the above-named petitioner-owner  filed  a Petition  for  Administrative Review against an order  issued  on March  17,  1987  by  the Rent Administrator  concerning  housing accommodations  known as Apartment 4-4N at 75-40 Bell  Boulevard, Bayside,  New  York,  wherein  the  District  Rent  Administrator determined  that  the owner had overcharged  the  tenant  in  the amount of $883.07. The   issue   in  this  appeal  is  whether  the  District   Rent Administrator's order was warranted. The applicable sections of the Law are Section 26-516 of the Rent Stabilization  Law,  and Section 2526.1(c) of  the  current  Rent Stabilization Code. 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 by the filing on August 31, 1984 of a tenant objection to the initial registered rent  in which he stated that he had commenced occupancy in January,  1972 at a rent of $225.00 per month. The owner filed an initial registration statement for the subject premises  effective April 1, 1984.  The registration  stated  the legal rent as $366.90. The  owner  was  served  with a copy of  the  complaint  and  was directed  to  submit a complete rental history  for  the  subject apartment  as of March 31, 1980, which in this case is  the  base rent  date  for  the  tenant's objection to  the  April  1,  1984 registration. The  owner  complied with this request.  The history  included  a hardship  order which was issued by the Conciliation and  Appeals Board  (CAB, the agency formerly charged with enforcing the  Rent Stabilization  Laws) on January 4, 1979, and  an  MCI  Order  for electrical rewiring, which was issued on November 21, 1984. On March 17, 1987 the District Rent Administrator determined that the  tenant  had been overcharged in the amount of $883.07.   The order  identified all overcharges as occurring in the  three-year renewal  lease  term effective January 1, 1981:  for  $21.71  per month  from January, 1981 through December, 1982; and  for  $6.65 per  month  from  January to December, 1983,  following  the  MCI increase. In its petition, the owner contends that the Administrator failed to incorporate the hardship order, which would have increased the base  rent  on April 1, 1980 to $313.28, and failed  to  properly calculate the MCI increase. The  Commissioner is of the opinion that this petition should  be granted in part. The  owner correctly points out that the Administrator failed  to include the hardship order issued on January 4, 1979 under Docket No.  OM-1217.  The order authorizes an increase of 6.21%  of  the legal rent on January 1, 1975, as added to the rent on April  27, 1975.   Although the rent on that date is undocumented, the prior lease,  at a rent of $225.00, is available, which results  in  an increase of $13.97 to the rent on January 4, 1979 of $294.96  for a base rent of $308.93 on April 1, 1980. Overcharges  are  thus  reduced  to  $123.84,  from  $883.07,  as follows:     Legal rent of $366.08 for 3-yr. lease effective 01/01/81:          06/30/80  rent  of $308.93 + 18.5% (Guidelines  12          increase  of 17% for 3 year lease + 1  1/2%  elec-          trical inclusion = $366.08)               Actual rent of $371.24 - $366.08 = $5.16 monthly overcharge:          $5.16 x 24 months = $123.84 total overcharge.                                         Furthermore, overcharges are eliminated after the January 1, 1983 MCI  increase of $15.06 because the legal rent is not  less  than the actual rent of $371.24. The  current legal rent is not changed as a result of this  Order and Opinion. THEREFORE,  in  accordance with the Rent  Stabilization  Law  and Code, it is ORDERED,  that  the owner's petition be and the  same  hereby  is granted  in part, and that the Administrator's order be  and  the same  hereby  is,  modified in accordance  with  this  Order  and Opinion. ISSUED: ELLIOT SANDER                                         Deputy Commissioner