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.: BH 410056-RO
PARK WEST DRO DOCKET NO.: L 3117626-R
MANAGEMENT CORP. CDR 30923
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On August 21, 1987 the above named petitioner-owner filed a Petition for
Administrative Review against an order issued on July 17, 1987 by the
District Rent Administrator, 10 Columbus Circle, New York concerning
housing accommodations known as Apartment 20R at 372 Central Park West,
New York, New York wherein the District Rent Administrator determined that
the owner had overcharged the tenant.
The issue in this appeal is whether the District Rent Administrator's
order was warranted.
The applicable section of the Law is Section 2526.1 of the 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 on March 1984 by the filing of a
rent overcharge complaint by the tenants (Richard and Abigail Wolf). The
tenants stated that they first moved to the subject apartment in July 1976
as subtenants at a rent of $455.10 per month and that they signed a lease
in their own name commencing July 1, 1978 at a rental of $477.89 per
In answer to the complaint the owner submitted a complete rental history
for the subject apartment as required. Such rental history indicated that
the tenants signed a two year lease commencing July 1, 1978 at a rental of
$477.85, that on March 1,1 979 the rent was increased by $2.50 from
$477.85 to $480.35 due to the installation of window guards, that
effective July 1, 1980 the rent was increased to $567.33 pursuant to a
three year renewal lease and that effective July 1, 1983 the rent was
increased to a $624.06 pursuant to a three year renewal lease.
In Order Number CDR 30923, the District Rent Administrator determined that
the tenant had been overcharged in the amount of $993.90 based on the
DOCKET NUMBER: BH 410056-RO
owner's incorrectly charging the tenants a sublet allowance from July 1,
1976 to July 1, 1978 under a vacancy lease and collecting an overcharge
commencing with the July 1, 19 80 renewal lease.
In this petition the owner contends in substance that the rent overcharge
should be lower because the owner was not credited with an additional 1%
increase pursuant to Guideline 10a which would make the lawful
stabilization rent $480.98 commencing July 1, 1978 rather than the $477.85
listed in the Rent Administrator's order.
The commissioner is of the opinion that this petition should be denied.
An examination of the records in this case discloses that the amount of
the rent overcharge was correctly determined. It is noted that pursuant
to a two year lease commencing July 1, 1978 the owner charged a rental of
$477.85 and increased said amount to $480.35 effective March 1, 1979 due
to a window guard installation under Guideline 10,10a in effect at the
commencement of the July 1, 1978 lease the owner could have charged an 11
1/2% increase 6-1/2% + 5% vacancy allowance - making the rent $480.98
effective July 1, 1978 but did not do so. Accordingly, the July 1, 1978
lawful stabilization rent was limited to $477.85 the amount actually
charged. However the owner included the 1% additional Guideline 10,10a
increase when calculating the guideline increase in the tenant's renewal
lease commencing July 1, 1980 under Guideline 12 resulting in an
overcharge of $5.32 per month as determined by the Rent Administrator.
Such an inclusion of the 1% increase under Guidelines 10 during the next
guidelines period is prohibited and accordingly the finding of a rent
overcharge was warranted.
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.
THEREFORE, in accordance with the Rent Stabilization Law and Code, it is
ORDERED, that this petition be, and the same hereby is, denied, and the
District Rent Administrator's order be and the same hereby is, affirmed.