STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO. BG 410155-RO
: DISTRICT RENT OFFICE
DOCKET NO. L-3112971-R
TENANT: Adrienne Hale
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On July 7, 1987, the above-named petitioner-owner filed a Petition for
Administrative Review against an order issued on June 3, 1987, by a Rent
Administrator concerning the housing accommodations known as 336 East
30th Street, New York, New York, Apartment No. 4A, wherein the 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 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 issue herein is whether the Rent Administrator's order was
The applicable sections of the Law are Section 26-516 of the Rent
Stabilization Law and Section 2526.1(a) of the current Rent
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 March 25, 1984
of a rent overcharge complaint by the tenant, in which she stated that
she had commenced occupancy in September, 1978 at a rent of $390.00 per
month. The tenant also stated that she entered into a 3 year renewal
lease commencing on September 1, 1980, at a monthly rent of $465.00,
including an $8.00 per month fuel passalong charge.
The owner was served with a complaint, and directed to submit a complete
rent history from the base date.
The owner submitted copies of all required leases, as well as
documentation of the cost of new equipment. The owner stated that the
tenant's three year renewal lease commencing on September 1, 1980
included a fuel passalong charge.
In Order Number L 3112971-R, the Rent Administrator determined that the
tenant had been overcharged in the amount of $1,315.91, including
interest and excess security.
In its petition, dated July 7, 1987, the owner protests the omission of
"any and all" applicable fuel passalong charges from the order.
The tenant's answer states that since the fuel passalong charges are not
supposed to merge with the base rent, their omission is not relevant.
The Commissioner is of the opinion that this petition should be granted
The record shows that the two year lease effective September 1, 1978 set
the rent at $390.00. The Administrator correctly found an $8.48 per
month overcharge based on the allowances in Guidelines 10 and 10a.
However, fuel passalong increases were granted by the Rent Guidelines
Board in Guidelines Orders 10b, 10c and 10d which were not included by
the Administrator. The owner is therefore correct that the rent
calculation chart should have included these increases, thereby reducing
overcharges for the remainder of the lease term. However, since none of
these later increases could be added to the base rent for calculation of
the next lease, and were to be discontinued as of the expiration of the
existing lease, the amount of overcharges calculated for the two
remaining lease terms in the Administrator's order is unchanged.
Regarding the $8.00 fuel sucharge which was included in the tenant's
September 1, 1980 lease commencing under Guideline 12, there was no fuel
sucharge granted by the Rent Guidelines Board for that guideline.
Therefore no fuel surcharge has been allowed for that lease term.
The Commissioner has recalculated the interest on overcharges collected
on and after April 1, 1984 in accordance with current interest
calculation methods. With the inclusion of the aforementioned fuel
surcharges and the recalculation of interest, total overcharges are
reduced to $1,193.28 from $1,315.91 as follows:
Lease term: 9/1/78 to 8/31/80
(9/1/78 to 2/25/79): $8.48 x 6 mos. = $50.88
10b (3/1/79 to 12/31/79): .85 x 10 mos. = 8.50
10c (1/1/80 to 8/31/80): no overcharge 0.00
Lease term: 9/1/80 to 8/31/83 unchanged $670.32
Lease term: 9/1/83 to 8/31/86
(9/1/83 to 3/31/84) unchanged $76.86
(4/1/84 to 8/31/86) unchanged $318.42
interest (new calculation method) $57.32
TOTAL OVERCHARGES $1,193.28
A copy of this order and opinion is being sent to the current occupant
of the subject apartment.
THEREFORE, in accordance with the Rent Stabilization Law and Code, it is
ORDERED, that the owner's petition be, and the same hereby is, granted
in part, and that the Rent Administrator's order be and the same hereby
is, modified in accordance with this Order and Opinion.
JOSEPH A. D'AGOSTA