STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:
WINDSOR PARK APARTMENTS
----------------------------------x TENANT: Larry Arnolds
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
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
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
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
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
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
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