DOCKET NO. BH-410267-RO/BI-4100026-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. BH-410267-RO AND
                                               :             BI-410002-RO  
          BLARE MANAGEMENT CORPORATION AND     :       
          FORT TRYON MANAGEMENT COMPANY,       :  D.R.O. DOCKET NO. TA 12391  
                                               :  
                                               :  
                                   PETITIONER  :
          -------------------------------------X


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                   DOCKET NUMBER BH 410267-RO IN PART AND DENYING
            PETITION FOR ADMINISTRATIVE REVIEW DOCKET NUMBER BI410002-RO


          On August 20, 1987 and August 27, 1987, the above-nam d  petitioner-
          owner  and  petitioner's  -  prior  owner,  respectively,  filed   a
          Petitions for Administrative Review of an order issued on  July  24,
          1987, by the District Rent Administrator, 10 Columbus Circle, 
          New York, New  York,  concerning  housing  accommodations  known  as
          Apartment 6-F at 120 Bennett Avenue, New York, New York wherein  the
          District Rent Administrator determined the fair market rent pursuant 
          to a comparability study and the special fair market rent  guideline
          promulgated by the New York City Rent Guidelines Board  for  use  in
          calculating fair market rent appeals.

          The Commissioner notes that this proceeding  was  initiated  prior
          to April 1, 1984.  Sections  2526.1(a)(4)  and  2521.1(d)  of  the
          Rent Stabilization Code (effective May  1,  1987)  governing  rent
          overcharge  and  fair  market  rent   proceedings   provide   that
          determination of these matters be  based  upon  the  law  or  Code
          provision  in  effect  on  March  31,  1984.   Therefore,   unless
          otherwise  indicated,  reference   to   Sections   of   the   Rent
          Stabilization Code (Code) contained herein  are  to  the  Code  in
          effect on April 30, 1987.

          The Commissioner has reviewed all of the evidence  in  the  record
          and has carefully considered that portion of the  record  relevant
          to the issues raised by the administrative appeals.





          This proceeding was  originally  commenced  by  the  filing  of  a
          fair market rent appeal application by the tenant with the 
          New  York  City  Conciliation  and  Appeals  Board,  one  of   the
          predecessor agencies to  the  DHCR.   The  tenant  took  occupancy
          pursuant to a lease commencing  December  20,  1981  and  expiring
          December 31, 1982 at a monthly rent of $450.00.







          DOCKET NO. BH-410267-RO/BI-4100026-RO
          In  Order  Number  CDR40,818,  the  District  Rent   Administrator
          adjusted the initial legal regulated rent by establishing  a  fair
          market  rent  of  $438.81  effective  December   20,   1981,   the
          commencement date  of  the  initial  rent  stabilized  lease,  and
          directed refund to the tenant of excess  rent  in  the  amount  of
          $844.20.

          In its petition  (BH410267  RO),  the  owner  (Sativel  Washington
          Heights Association) through its managing agent (Blare  Management
          Corporation) contends that the District Rent Administrator  failed
          to include the fuel cost allowance in the application  of  Special
          Fair Market Rent Guideline 13.  The owner  also  asserts  that  it
          took title as  of  January  1,  1987  and  that  Blare  Management
          Corporation became the new managing agent as of  that  date.   The
          owner requests apportionment of the overcharge.

          In its  petition  (BI410002  RO),  the  prior  owner  (Fort  Tryon
          Management Company) asserts that an increase is  warranted  for  a
          new combination sink and tub which was installed  in  the  subject
          apartment at the time the tenant rented the apartment.  The  prior
          owner submits a bill for this item.

          In answer to the petitions, the  tenant  asserts  that  her  lease
          contained no mention of increases for appliances,  that  the  sink
          was installed prior to the signing of her lease and  that  she  is
          not responsible for it.   The  tenant  also  asserts  that  treble
          damages should be imposed.

          The Commissioner is of the opinion that the petition  filed  under
          Docket Number BH410267  RO)  should  be  grant  in  part  and  the
          petition filed under Docket Number BH410002 RO should be denied.

          Pursuant to Special Fair Market Rent Guideline 13,  applicable  to
          leases commencing between October 1, 1981 and September 30,  1982,
          the fair market rent is determined based on the 1980 Maximum  Base
          Rent increased by 20 percent.  The  fuel  cost  allowance  is  not
          included.  Therefore, this portion  of  the  owner's  petition  is
          denied.





          Section 20c(1) of the Code provides that where there has  been  an
          installation of new  equipment  in  a  stabilized  apartment,  the
          monthly stabilization rent for  said  unit  may  be  increased  by
          1/40th the cost of such equipment provided the tenant then in 
          occupancy has consented thereto  in  writing.   In  addition,  the
          courts have ruled that an increase  for  new  equipment  installed
          during a vacancy prior to the commencement of  a  new  tenancy  or
          upon the commencement of a new tenancy and reflected in the  lease
          rent, may be collected without the new  tenant's  consent  to  pay
          such increase  (Matter of LeHavre Corp. v. Gribetz, et. al.,
          N.Y.L.J., January 20, 1971, p. 19, col. 8 (Sup. Ct.,  Queens  Co.,
          Crisona, J.); Matter  of  Morton  I.  Hamberg  v.  CAB,  N.Y.L.J.,
          November 9, 1972, p. 18. col. 8, Sup. ct., N.Y Co., Sarafite, J.).

          Section 2529.6 of the Rent Stabilization Code effective May 1, 
          1987 provides that review pursuant  to  an  administrative  appeal






          DOCKET NO. BH-410267-RO/BI-4100026-RO
          shall be limited to facts or evidence before a Rent  Administrator
          as raised in the petition.  Where the petitioner submits with  the
          petition certain facts or evidence which he or she establishes 
          could  not  reasonably  have  been  offered  or  included  in  the
          proceeding prior to the issuance of the order being appealed,  the
          proceeding  may  be  remanded  for  determination  to   the   Rent
          Administrator to consider such facts or evidence.

          Sections of the current  Code  dealing  with  procedural  matters,
          including the above-cited Section 2529.6, are  applicable  to  all
          PARS, whether filed before or after April 1, 1984.

          In this case, the prior owner asserts that it was  entitled  to  a
          rent increase for a new  combination  sink  and  tub  and  submits
          documentation  of  such  improvements  for  the  first   time   on
          administrative appeal. 

          The record  indicates  that  the  prior  owner  failed  to  submit
          documentation of any improvements during the proceeding before the 
          Administrator. The prior  owner  offers  no  explanation  for  its
          failure  to  submit  such  documentation  to  the   Administrator.
          Therefore, the Commissioner finds that the claimed  rent  increase
          is not warranted.

          It is the DHCR's policy for fair market rent appeal cases that  an
          owner will be held responsible only for its  own  portion  of  the
          excess rent in the absence of evidence of any collusion between 
          the present owner and the former owner.  






          The prior owner (Fort Tryon Management  Company)  is  directed  to
          refund to the tenant $739.24  representing  excess  rent  for  the
          period from December 20, 1981 to December 31, 1986.  This order is 
          issued without prejudice  to  the  tenant's  rights,  if  any,  to
          proceed  against  the  former  owner  in  a  Court  of   competent
          jurisdiction. 

          The  owner  (Sativel  Washington  Heights,  c/o  Blare  Management
          Corporation)  is  directed  to  refund  to  the   tenant   $104.96
          representing excess rent for the period from January  1,  1987  to
          July 31, 1987 plus excess security.

          Regarding the tenant's assertion that  treble  damages  should  be
          imposed, the Commissioner notes that since the  tenant  failed  to
          raise  this  issue  affirmatively  in  a  tenant's  petition   for
          administrative review the raising of this issue in answer  to  the
          owner's petition cannot operate  as  a  proper  challenge  to  the
          order.  However, the Commissioner notes that  treble  damages  are
          not imposed in fair market rent appeal cases (Accord:  ART  2020-L
          and ARL 2023-L).  It is noted that the tenant filed  petition  for
          administrative review under Docket Number BH410282  RT  which  was
          dismissed  for  failure  to  raise  any  specific  objections   to
          Administrator's Order.








          DOCKET NO. BH-410267-RO/BI-4100026-RO
          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          it is 

          ORDERED, that petition for administrative review Docket Number 
          BH 410267-RO be and the same  hereby  is  granted  in  part,  that
          petition for administrative review Docket Number BI 410002 RO  be,
          and  the  same  hereby  is   denied,   and   that   the   District
          Administrator's order be, and the same hereby is modified  to  the
          extent hereinabove indicated.


          ISSUED:



                                                                           
                                             ELLIOT SANDER
                                             Deputy Commissioner








                                               ADMINISTRATIVE REVIEW BUREAU
                                                COVERING MEMORANDUM


          ARB Docket No.:  DOCKET NO. BH-410267-RO/BI-410002-RO

          DRO Docket No/Order No.:  TA 12391  

          Tenant(s): ALICE GOTTLIEB

          Owner:  BLARE MANAGEMENT CORPORATION  AND  FORT  TRYON  MANAGEMENT
                  COMPANY

          Code Section:  

          Premises: 120 BENNETT AVENUE, NEW YORK, NY, APARTMENT 6-F

                                            
              ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                     DOCKET NUMBER BH 410267-RO IN PART AND DENYING
              PETITION FOR ADMINISTRATIVE REVIEW DOCKET NUMBER BI410002-RO


               1)   Fuel cost allowance is not included  in  Special
                    Fair Market Guideline 13.

               2)   Prior owner  may  not  submit  Section  20  c(1)
                    documentation for the first time on PAR.

               3)   Excess rent is  allocated  between  prior  owner
                    and current owner.

          APPROVED:

          Processing Attorney:                                             

          Supervising Attorney:                                            

          Bureau Chief:                                                    

          Deputy Counsel:                                                  

          Deputy Commissioner:                                             


          Mailed copies of Order and Determination to:
                         Tenant(s)            
                         Owner                
                         Tenant's Atty.       
                         Owner's Atty.        


          Date:                    : by                                   
                                        signature
    

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