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.: BH 410056-RO
                                         :  
        PARK WEST                           DRO DOCKET NO.: L 3117626-R
        MANAGEMENT CORP.                                    CDR 30923
                           PETITIONER    : 
     ------------------------------------X                             


           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
     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 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
     month.

     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.

     ISSUED:



                                                                   
                                             ELLIOT SANDER
                                           Deputy Commissioner




                                                   
    

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