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.: BF 110276-RO
                                         :  
                                            DRO DOCKET NO.: 36764
       SAUL MILLER
                           PETITIONER    : 
     ------------------------------------X                             


         ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW AND
              REMANDING PROCEEDING TO THE DISTRICT RENT ADMINISTRATOR


     On June 12, 1987, the above-named petitioner-owner filed  a  Petition  for
     Administrative Review of an order issued on May 26, 1987 by  the  District
     Rent Administrator, 10 Columbus Circle,  New  York,  New  York  concerning
     housing accommodations known as  Apartment  5D,  67-70  Yellowstone  Blvd,
     Forest Hills, New York wherein the District Rent Administrator  determined
     the fair market rent pursuant to 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 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.

     This proceeding was originally commenced by the filing of  a  fair  market
     rent appeal by the tenant.  The tenant took occupancy pursuant to a  lease
     commencing September 1, 1984 and expiring August 31,  1986  at  a  monthly
     rent of $725.00.

     The tenant advised during the proceeding before the Administrator that  he
     had vacated the subject apartment.

     In the order under appeal herein, the District Rent Administrator adjusted 
     the initial legal regulated rent by establishing a  fair  market  rent  of
     $471.03 effective September 1, 1984, the commencement date of the  initial
     rent stabilized lease, and directed the owner to refund excess rent in the 
     amounts of  $6,349.25.   The  Administrator  stated  that  the  owner  had
     submitted comparable rents,  but  did  not  use  any  of  the  data  in  a
     comparability study.

     In  this  petition,  the  owner  contends  that  it   submitted   to   the
     Administrator rent records for the entire building from 1974.   The  owner
     alleges that  the  D  and  Y  lines  of  apartments  should  be  used  for
     comparability purposes.  The owner states  that  it  previously  submitted
     bills and checks for  new  equipment  and  that  it  is  resubmitting  the
     documentation with its petition.  







          DOCKET NUMBER: BF 110216-RO
     The owner also asserts  that  Guideline  16,  which  is  utilized  in  the
     Administrator's order, calls for 20% above the Maximum  Base  Rent  (MBR),
     plus 7 and 1/2% vacancy allowance, plus 9% for a 2 year lease.

     In answer, the tenant states that a new refrigerator was installed in  the
     subject apartment, but that the  owner  has  submitted  invoices  for  two
     refrigerators, one of which is for a different apartment.  The tenant also 
     requests that treble damages be awarded.

     The Commissioner is of the opinion that this petition should be granted.

     Pursuant to  Sections  2522.3(e)  and  9f)  the  Rent  Stabilization  Code
     effective May 1, 1987, for fair market rent appeals filed after  April  1,
     19884, comparability will be determined based on the following:

               (e)...(1)  Legal regulated rents, for which the time
                     to file a Fair Market Rent Appeal has expired 
                     and no Fair Market Rent Appeal is then pending,
                     or the Fair Market Rent Appeal has been finally
                     determined, charged pursuant to a lease      
                     commencing within a 4 year period prior to, or a
                     one year period subsequent to, the commencement
                     date of the initial lease for the housing 
                     accommodation involved; and

                    (2)  At the owner's option, market rents in      
                    effect for other comparable housing 
                    accommodations on the date of the initial lease
                    for the housing accommodation involved as 
                    submitted by the owner

               (f)  Where the rents of the comparable housing 
                    accommodations being considered are legal
                    regulated rents, for which the time to file a
                    Fair Market Rent Appeal has expired, and such
                    rents are charged pursuant to a lease ending
                    more than 1 year prior to the commencement 
                    date of the initial lease for the subject
                    housing accommodation, such rents shall be
                    updated by guidelines increases for 1 year
                    renewal leases, commencing with the expiration
                    of the initial lease for the comparable
                    housing accommodations to a date within 12
                    months prior to the renting of the housing
                    accommodations involved.

     The Commissioner finds that in this case the owner  was  not  afforded  an
     opportunity to submit comparability data pursuant to the  requirements  of
     the current Rent Stabilization Code.  Therefore,  the  Commissioner  finds
     that the proceeding should be remanded to the  Administrator  for  further
     processing  in  order  to  afford  the  owner  an  opportunity  to  submit
     comparability data pursuant to the requirements of the current  code.   It
     is noted that the owner failed to submit with its comparability submission 
     proof of service of a DC-2 notice or apartment registration form  for  the
     comparable apartments.







          DOCKET NUMBER: BF 110216-RO
     The owner alleges that it submitted documentation of improvements  to  the
     subject  apartment  to  the  Administrator.    The   tenant   acknowledges
     installation of a refrigerator, but challenges  a  second  invoice  for  a
     refrigerator  which  is  for  a  different  apartment.   On  remand,   the
     Administrator should consider the documentation of improvements  submitted
     by the owner, except for the invoice for a  refrigerator  which  does  not
     apply to the subject apartment.

     The Commissioner further finds that the Administrator incorrectly utilized 
     Special Fair Market Rent Guideline Number 16 instead of Special  Guideline
     15 in this  case.   Special  Guideline  16  applies  to  first  stabilized
     tenancies commencing between October 1, 1984 and September 31,  1985.   In
     this case, the applicant's initial lease commenced September 1, 1984,  and
     the appropriate guideline is Special Guideline  15,  applicable  to  first
     stabilized tenancies commencing between October 1, 1983 and September  30,
     1984.  Pursuant to Special Guideline 15, the sum of the 1982 MBR  and  the
     fuel cost adjustment is increased  by  20%.   The  vacancy  allowance  and
     standard  guideline  increase  are  applicable  to  previously  stabilized
     apartments and are not included  in  the  special  guideline  utilized  to
     establish first stabilized rents.  On  remand,  the  Administrator  should
     recalculate  the  special  guideline  portion  of  the  fair  market  rent
     calculation based on Special Guideline 15.

     Regarding the  tenant's  request  that  treble  damages  be  imposed,  the
     Commissioner finds that since  the  tenant  failed  to  raise  this  issue
     affirmatively by timely filing a petition for administrative  review,  the
     raising of this issue in an answer to the owner's petition cannot  operate
     as a proper challenge to the Administrator's order.  However, it is  noted
     that treble damages are not awarded in  fair  market  rent  appeal  cases.
     (Accord: ART 2020-L and ARL 2023-L).

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

     ORDERED, that this petition be and the  same  hereby  is  granted  to  the
     extent of remanding this proceeding to the District Rent Administrator for 
     further processing  in  accordance  with  this  order  and  opinion.   The
     automatic stay of so much of the District 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 of the rent is  not
     stayed and  shall  remain  in  full  force  and  effect,  except  for  any
     adjustments pursuant to lease renewals, until the Administrator  issues  a
     new order upon remand.  A copy of this order and opinion is being sent  to
     the current occupant of the subject apartment.

     ISSUED:



                                                                   
                                             ELLIOT SANDER
                                           Deputy Commissioner




                                                 
    

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