BK 410283 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
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IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: BK 410283 RO
FELDS REALTY COMPANY-OWNER,
DRO DOCKET NO.: 042008
EXAMINING UNIT
TENANT: DEBORAH SCHORSCH
PETITIONER
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ORDER AND OPINION REMANDING PROCEEDING FOR FURTHER PROCESSING
On November 27, 1987, the above-named owner filed a Petition for
Administrative Review against an order issued by the Rent
Administrator, 10 Columbus Circle, New York, New York concerning
the housing accommodations known as 301 West 22 Street, Apartment
31, New York, New York wherein the Administrator granted the
tenant's fair market rent appeal and directed the owner to
refund excess rent of $9,519.74 inclusive of excess security.
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 appeal.
On September 24, 1984, the tenant commenced this proceeding by
filing an objection to the apartment registration, alleging that
the initial rent exceeded the apartment's fair market rent. The
tenant stated that she had first taken occupancy of the subject
apartment on January 1, 1979 at an initial rent of $400.00.
A copy of the Fair Market Rent Appeal, as well as answer forms
and rent forms to be filled out, was sent to the owner along with
instructions to submit copies of all leases of the subject
apartment from its base date.
On March 23, 1987, the owner submitted a complete set of leases
for the apartment commencing January 1, 1979. The owner also
submitted copies of leases for two other apartments in the
subject building for the same time period as the tenant's initial
lease as comparables.
On October 20, 1987, the Administrator issued the order here
under review. Finding that the owner had not submitted necessary
data, the Administrator determined the tenant's fair market rent
solely on the basis of a special guidelines order, established
the fair market rent at $322.46, and directed the owner to refund
$9,519.74 in excess rent and security.
BK 410283 RO
In its appeal, the owner contends:
1) the tenant's complaint is jurisdictionally
defective and should have been rejected by
the Rent Administrator because the tenant
failed to meet the pleading requirements
imposed by Code Section 2522.3 (b);
2) the petitioner was not notified of the
requirements under the new Code and should be
permitted to submit proper comparability
data; and
3) the Administrator's failure to follow
standard Agency procedure and forward a
summary notice which would have advised the
owner that Special Guidelines would be the
sole basis of the Fair Market Rent prejudiced
the owner. The owner seeks to revoke the
Administrator's order.
The tenant contends that:
1) she filed a fair market rent appeal because
she believed her initial rent was
substantially higher than rents for similar
apartments in the same neighborhood;
2) the owner had failed to give her either a
report of statutory decontrol or a rent
history for the subject apartment; and
3) it appears that the rent for the subject
apartment is considerably higher than the
average rent for other apartments in the
subject building.
The Commissioner is of the opinion that this petition should be
granted to the extent of remanding the proceeding.
With respect to the petitioner's contention that the tenant's
complaint was jurisdictionally defective, the Commissioner notes
that Code Section 2522.3 imposes a minimum pleading requirement
which is met, as in the instant case, by the allegation that the
initial legal registered rent exceeds the fair market rent.
As regards the alleged lack of notification by the Agency, the
Commissioner notes that the owner should have been given an
opportunity to submit updated comparability data in accordance
with the requirements pursuant to Code Section 2522.3(e). A
review of the record reveals that the owner was not informed of
the changes in the requirements for submission of updated
comparability data. Accordingly, the Commissioner finds that the
proceeding should be remanded to the Administrator for further
processing to permit the owner to submit comparability data and
to redetermine the fair market rent, if necessary.
THEREFORE, in accordance with the Rent Stabilization Law and
BK 410283 RO
Code, it is
ORDERED, that this petition be, and the same hereby is, granted
to the extent of remanding this proceeding to the Rent
Administrator for further processing in accordance with this
Order and Opinion. The automatic stay of so much of the Rent
Administrator's order as directed a refund is hereby continued
until a new order is issued upon remand. However, the
Administrator's determination as to the rent is not stayed and
shall remain in effect, except for any adjustments pursuant to
lease renewals and other lawful increases, until the
Administrator issues a new Order upon remand.
ISSUED:
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JOSEPH A. D'AGOSTA
Deputy Commissioner
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