BK 410142-RT; BK 420203-RT
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
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IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEALS OF DOCKET NOS.:
BK 410142-RT
BK 420203-RT
PAULA FARBER and
THERESA MC FARLAND, RENT ADMINISTRATOR'S
DOCKET NO.:
PETITIONER BB 420020-OR
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ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
On October 29, 1987 and November 6, 1987, the above-named peti-
tioner-tenants filed petitions for administrative review of orders
issued on October 9, 1987, by the Rent Administrator concerning the
housing accommodation known as 257 Central Park West, New York,
New York, Various Apartments wherein the Administrator determined
that the rents for the subject rent controlled apartments should be
restored because the ten year tax abatement period had expired.
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 appeals.
The record reveals that on February 3, 1987, the owner filed an
application for an increase in the maximum rent of the subject
apartments based on the expiration in June 1986 of the J-51 Tax
Abatement that the owner had been granted for major capital
improvements commenced in June 1974. In exchange for the tax
abatement, the subject apartments became rent controlled and upon
expiration of the tax abatement, the owner sought to increase the
rents.
Several tenants answered the application, objecting to the owner's
authority to collect such an increase and to the method of compu-
tation.
The Administrator's order granted the applications based on a
finding that the ten year tax abatement period that had resulted in
rent reductions ordered on June 20, 1975 had expired.
BK 410142-RT; BK 420203-RT
In the petitions for administrative review, the tenants assert, in
substance, that the orders are unauthorized and should be revoked.
After careful consideration of the evidence of record, the Commis-
sioner is of the opinion that the petitions should be denied.
Pursuant to Administrator's Interpretation No. 16: When a landlord
receives tax abatement and tax exemption relief as provided in
Section J-51 of the Administrative Code, any rent increase which
would otherwise be allowable for the major capital improvements
must be offset by a portion of the tax abatement allowance. When
the tax abatement period expires, Interpretation No. 16 provides
that the landlord is entitled to a restoration of the maximum rent
which would reflect the full rental value of the improvements.
The record reveals that the maximum rents for the subject housing
accommodations were decreased pursuant to orders issued on June 20,
1975 based on the tax abatement the landlord had been granted for
the improvements. Upon expiration of the abatement, the landlord
was entitled to restoration of the rents which the Administrator so
ordered.
THEREFORE, pursuant to the New York City Rent Control Law and the
Rent and Eviction Regulations for New York City, it is,
ORDERED, that these petitions be, and the same hereby are, denied,
and the Rent Administrator's order be, and the same hereby is,
affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner
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