BJ 430016-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.:
BJ 430016-RO
CAPRICE MANAGEMENT CORP.,
RENT ADMINISTRATOR'S
DOCKET NO.:
PETITIONER L 3115980-RT
----------------------------------x TENANT: SANDRA ROBERTS
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN PART
On October 14, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
September 9, 1987 by a Rent Administrator concerning housing
accommodations known as Apartment 12-G at 320 East 58th Street,
New York, New York, wherein the District Rent Administrator
determined that the owner had overcharged the tenant.
The Commissioner notes that this proceeding was filed 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 over-
charge and fair market rent proceedings provide that determina-
tion 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 issue in this appeal is whether the District Rent Adminis-
trator's order was warranted.
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
February 29, 1984 of a rent overcharge complaint by the tenant in
which she stated that she had commenced occupancy on May 1, 1976
at a rent of $325.00 per month.
In its answer the owner submitted a complete rental history for
the subject apartment. The owner also enclosed numerous bills
and statements for new equipment that was installed in the
apartment after the prior tenant's departure but before the
complainant entered the apartment in May, 1976.
In Order No. L 3115980-RT, issued on September 9, 1987, the Rent
Administrator determined that the tenant had been overcharged in
the amount of $8,3420.95 as of April 30, 1986, including interest
and directed the owner to refund such overcharge to the tenant as
well as to reduce the rent. The Administrator stated therein that
the owner failed to submit sufficient documentation to verify the
cost of new equipment. As a result only the claim for a new sink
and faucet was approved for a $5.00 per month increase. Affixed
to the order was a rent calculations chart which detailed the
amount and reason for the overcharges in each lease term in which
such overcharges had been determined. An initial overcharge of
$55.81 per month was found in the complainant's vacancy lease,
effective May 1, 1976. Overcharges in all subsequent leases were
a direct result of this initial overcharge.
In its petition, the owner contends that the order was improper
because the Administrator failed to consider the improvements
made to the subject apartment. The owner claims the following
improvements:
* venetian blinds
* new stove
* new refrigerator
* re-finishing of parquet floor
* installation charges.
The tenant's answer disputes that the stove and refrigerator were
new and states that there are witnesses who can confirm this.
Additionally, the tenant claims that there have never been
venetian blinds in the apartment and that the floors were not
refinished before she moved in.
The Commissioner is of the considered opinion that this petition
should be granted in part.
Section 20C (1) of the former Rent Stabilization Code provides in
pertinent part that for the installation of new equipment or
improvements in a particular dwelling unit, the monthly
stabilization rent may be increased by 1/40th of the total cost
of such equipment or improvement, provided that the tenant then
in
occupancy has given written consent. If the new equipment is
installed during a vacancy prior to the commencement of a new
tenancy or upon the commencement of a new tenancy and is re-
flected in the lease rent, the new tenant's consent to pay an
increase for new equipment is implied.
The record below contains two lease histories that were separ-
ately submitted by the owner. This was possibly due to the fact
that the owner was served with the complaint twice. Although one
of these packets contains no bills or invoices - and may be the
one on which the Administrator based his determination - the
other packet does contain such documentation: for a refrigerator,
($226.80), a stove ($140.40) and the finishing of the floors. The
expense for the floors must be considered as normal maintenance
and repair for which no rent increase can be granted. However,
the invoices for the refrigerator and the stove are sufficient as
documentation to withstand the tenant's claim that these were the
same appliances that were used by prior tenants. Although the
tenant alleges that there are witnesses who could testify that
the appliances were not new, he submits no evidence that disputes
the invoices submitted by the owner which establish the date of
delivery, the cost and the model numbers of the appliances with
specificity. Finally, the tenant's three-year renewal lease
effective May 1, 1978 was incorrectly given a guidelines increase
of 11% instead of 11 1/2% by the Adminis-trator. The addition of
1/40th of the combined cost of the stove and refrigerator per
month plus the corrected guidelines increase results in a
reduction of total overcharges to $6,953.95, from $8,320.95, as
is documented in the rent calculations chart affixed to this
opinion and made a part hereof.
If the owner has already complied with the Administrator's order
and there are arrears due to the owner as a result of the instant
determination, the tenant may pay off the arrears in six equal
monthly installments. Should the tenant vacate after the issu-
ance of this order, said arrears shall be payable immediately.
This order may, upon the expiration of the period in which the
owner may institute a proceeding pursuant to Article 78 of the
Civil Practice Law and Rules, be filed and enforced by the tenant
in the same manner as a judgment or not in excess of twenty
percent thereof per month may be offset against any rent
thereafter due the owner.
THEREFORE, pursuant to the Rent Stabilization Law and Code, it is
ORDERED, that this 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
RENT CALCULATION CHART
TENANT : W. Chapman / L. Levine / S. Roberts Rent Overcharge (through 04/31/86) = $ 6,888.82
PREMISES : 320 East 58th Street, New York, NY Excess Security = $ + 65.13
APT. # : 12-G
TOTAL OVERCHARGE = $ 6,953.95
DOCKET # : BJ 430016-RO ============
Pg. 1 of 2
================+======================+==============+=============+=====================================+=================
(1) | (2) | (3) | (4) | (5) | (6) | (7)
| LEASE TERM | ACTUAL RENT | EFFECTIVE | | LAWFUL | OVERCHARGE
TENANT'S NAME | FROM TO | CHARGED | DATE OF | EXPLANATION | STABIL. | CALCULATION
| | | INCREASE(S) | | RENT /1 |
================+===========+==========+==============+=============+==========================+==========+=================
| | | | | | |
W. Chapman | 05/01/73 | 04/30/76 | $ 235.10 | 05/01/73 | Base Rent | $ 235.10 | - 0 -
| | | | | | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | | |
| | | | | Guideline 7: 07/01/75 | |
L. Levine | 07/01/75 | 03/31/76 | $ 246.85 | 07/01/75 | subletting rent of | $ 246.85 | - 0 -
| | | | | $235.10 increased by 5% | |
| | | | | | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | Guideline 7: 06/30/75 | |
| | | | | rent of $235.10 in- | |
S. Roberts | 05/01/76 | 04/30/78 | $ 325.00 | 05/01/76 | creased by 14.5% = | $ 278.37 | $ 46.63
| | | | | (9.5% guideline + 5% | | x 24 mos.
| | | | | vacancy allowances) + | | $1,119.12
| | | | | $9.18 20(c)(1) stove & | |
| | | | | refrigerator. | |
+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | Guideline 9: 06/30/77 | |
| | | | | rent of $278.37 in- | | $ 52.02
| 05/01/78 | 04/31/81 | $ 367.40 | 05/01/78 | creased by 11.5% guide- | $ 315.38 | x 36 mos.
| | | | | line + $5.00 20(c)(1) | | $1,872.72
| | | | | new sink & faucet. | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
/1 Where the actual rent charged is less than the rent with maximum permitted increases, the lawful stabilization rent is
limited to the rent charged.
RENT CALCULATION CHART
TENANT : W. Chapman / L. Levine / S. Roberts Rent Overcharge (through 04/31/86) = $ 6,888.82
PREMISES : 320 East 58th Street, New York, NY Excess Security = $ + 65.13
APT. # : 12-G
TOTAL OVERCHARGE = $ 6,953.95
DOCKET # : BJ 430016-RO ============
Pg. 2 of 2
================+======================+==============+=============+=====================================+=================
(1) | (2) | (3) | (4) | (5) | (6) | (7)
| LEASE TERM | ACTUAL RENT | EFFECTIVE | | LAWFUL | OVERCHARGE
TENANT'S NAME | FROM TO | CHARGED | DATE OF | EXPLANATION | STABIL. | CALCULATION
| | | INCREASE(S) | | RENT /1 |
================+===========+==========+==============+=============+==========================+==========+=================
| | | | | Guideline 12: 06/30/80 | |
S. Roberts | 05/01/81 | 04/31/84 | $ 429.86 | 05/01/81 | rent of $315.38 in- | $ 368.99 | $ 60.87
| | | | | creased by 17% for | | x 36 mos.
| | | | | 3 year lease renewal. | | $2,191.32 *
| | | | | | |
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
| | | | | | |
| | | | | Guideline 15: 09/30/83 | |
" " | 05/01/84 | 04/31/86 | $ 459.95 | 05/01/84 | rent of $368.99 in- | $ 394.82 | $ 65.13
| | | | | creased by 7% for | | x 24 mos.
| | | | | 2 year lease renewal. | | + interest =
| | | | | | | $1,705.66
----------------+-----------+----------+--------------+-------------+--------------------------+----------+-----------------
/1 Where the actual rent charged is less than the rent with maximum permitted increases, the lawful stabilization rent is
limited to the rent charged.
* Interest for month of April, 1984 is $0.00.
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