BC 410389 RO

                                    STATE OF NEW YORK
                              OFFICE OF RENT ADMINISTRATION
                                       GERTZ PLAZA
                                 92-31 UNION HALL STREET
                                 JAMAICA, NEW YORK 11433

            APPEAL OF                              DOCKET NO.:  BC 410389 RO

                   POLSIM CONSULTANTS, INC.,
                                                   DRO DOCKET NO.: L 3112659 R

                                                   TENANT: HENRY GIBSON         

                                         IN PART

            On April 20, 1987, the above-named petitioner-owner refiled a 
            Petition for Administrative Review against an order issued on 
            February 17, 1987, by a Rent Administrator concerning the housing 
            accommodations known as 239 East 81st Street, New York, New York, 
            Apartment No. 4D, wherein the Rent Administrator determined that 
            the owner had overcharged the tenant.

            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 
            provisions 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 Administrative Appeal is being determined pursuant to the 
            provisions of Section 20(C)(1) of the former Rent Stabilization 

            The issue herein is whether the Rent Administrator's order was 

            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.  

            The tenant originally commenced this proceeding by filing a 
            complaint of rent overcharge.  The owner was served with a copy of 

          BC 410389 RO

            the complaint and was directed to submit a complete rental history.  
            The owner was advised that if it claimed a rent increase for the 
            installation of new equipment, it was required to submit invoice(s) 
            showing the cost and date of installation.   

            In his/her order, the Rent Administrator established the legal 
            regulated rent, but only granted a partial rent increase for new 
            equipment.  The Administrator then determined a rent overcharge in 
            the amount of $1,624.52, including interest, which was reduced by 
            a refund of $545.09, for a balance of $1,079.43.

            In its petition, the owner asserts that because the new equipment 
            was installed on August 24, 1978 prior to commencement of the 
            October 1, 1978 lease , the increase for that equipment should have 
            been included in the base rent for that lease.  The owner also 
            claims that the Rent Administrator should have granted a rent 
            increase of $6.00 per month for a new refrigerator, which was 
            installed in February, 1980.

            The tenant did not respond to the petition.

            It is the opinion of the Commissioner that this petition should be 
            granted in part.

            Section 20C(1) of the former Rent Stabilization Code states as 

                 For dwelling units for which there has been since May 31, 
                 1968, or the date as of which required services are 
                 determined pursuant to Section 2(m) of this Code, an 
                 increase in dwelling space or the installation of new 
                 equipment or improvements in a particular dwelling unit 
                 other than a major capital improvement, the monthly 
                 stabilization rent for the dwelling unit shall be 
                 increased by 1/40th of the total cost for such added 
                 dwelling space, equipment or improvement, including the 
                 cost of installation thereof, provided however, that such 
                 increase shall not be collectible during the term of a 
                 lease then in effect or any renewal thereof except upon 
                 written consent of the tenant.

            The owner's contention that because the new equipment was installed 
            prior to the lease commencing on October 1, 1978, the Administrator 
            should have included the $31.11 increase in the base when 
            calculating the guidelines increase for that lease is not correct.  
            Guidelines 10 and 10a, the applicable guidelines, employ the base 
            rent in existence on June 30, 1978, which is prior to the equipment 
            installation.  Therefore, the Administrator properly added the 
            improvement allowance only after applying the guidelines increase 
            of 8 1/2% to the base.  It is noted that the owner did not add the 
            charge for the equipment until the commencement of the new 
            lease in October 1978.

          BC 410389 RO

            However, the record shows that the owner submitted proof of the 
            delivery of a new refrigerator in January, 1980, with the tenant's 
            consent, but that it was omitted from the Administrator's 
            calculations.  The owner resubmitted this documentation with the 
            petition, but the tenant did not respond.

            Finally the petitioner's assertion that it has refunded an 
            additional $89.17 to the tenant has not been denied, and such 
            amount will be deducted from the revised total.

            As a result of the $6.00 per month increase for the new 
            refrigerator, effective February, 1980, and the additional refund 
            of $89.17, total overcharges are reduced to $449.96, from 
            $1,079.43, as documented in the rent calculation chart affixed 
            hereto 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 (6) equal 
            monthly installments.  Should the tenant vacate after the issuance 
            of this order, said arrears shall be payable immediately.

            THEREFORE, in accordance with the provisions of the Rent 
            Stabilization Law and Code, it is

            ORDERED, that the 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.


                                              JOSEPH A. D'AGOSTA
                                              Deputy Commissioner


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