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. BH210173RO
: DRO DOCKET NO.77269G
TRUMP MANAGEMENT, INC. TENANT: S. & P. SPIEGEL
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On August 2, 1987, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on July
13, 1987, by the Rent Administrator, 92-31 Union Hall Street,
Jamaica, New York, concerning the housing accommodations known as
2650 Ocean Parkway, Brooklyn , New York, Apartment No. 11M, wherein
the Rent Administrator determined that the owner had overcharged the
The Administrative Appeal is being determined pursuant to the
provisions of Section 2520.6(r)(4)(xi) of the 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.
This proceeding was originally commenced by the tenants' filing
of a rent overcharge complaint in October, 1983, in which they
stated that they first moved to the subject apartment February 1,
1979 at a rental of $481.17 per month. Along with their complaint,
the tenants submitted a copy of their initial lease in which it was
stated that the rental includes "one unattended BH garage" and that
the tenants had deposited $5.00 for keys.
In answer to the tenants' complaint, the owner submitted a
complete rental history as required including copies of prior
leases. Said prior leases did not include a garage space as part of
In Order Number CDR 30,855, the Rent Administrator determined
that a rent overcharge of $2,192.36 had occurred and directed the
owner to refund such amount to the tenants and to also return the
$5.00 key deposit money. No allowance was made for the garage space
in the calculation of the rent overcharge.
In this petition, the owner alleges in substance that there was
no rent overcharge in that the Rent Administrator failed to credit
the owner for a parking space which was included in the tenants'
initial lease, but not included in the leases of prior tenants.
The Commissioner is of the opinion that this petition should be
Section 2520.6(r)(4)(xi) of the Rent Stabilization Code
provides in pertinent part that for ancillary services subject to
the provisions of the Rent Stabilization Code where there is a
separate charge for such service, any increase for such service
other than the charge provided in the initial agreement with a
tenant to lease, rent or pay for such service, shall conform to the
applicable rent guidelines rate.
In the instant case, the evidence of record discloses that
prior to occupancy by the tenant herein, there was no provision of
a garage space to prior tenants of the subject apartment.
Accordingly, the owner was entitled to an initial charge for the
garage space not subject to the rent guidelines but subject to the
guidelines rate for renewal leases. Therefore, the overcharge of
$32.58 per month found by the Rent Administrator in the tenants'
initial lease is not an overcharge but an allowance for the garage
space. It is noted that in the next lease, the rent including the
garage space was increased by the appropriate guideline amount for
a renewal lease so that no overcharge occurred. Therefore the Rent
Administrator's order finding a rent overcharge must be revoked
although the owner is still responsible for refunding the $5.00 key
If the owner has already complied with the Rent Administrator's
order and there are arrears due to the owner as a result of the
instant determination, the tenant is permitted to pay off the
arrears in twelve equal monthly installments. Should the tenant
vacate after issuance of this order or already have vacated, said
arrears shall be payable immediately.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that this petition for administrative review be, and
the same hereby is, granted, and, that the order of the Rent
Administrator be, and the same hereby is, revoked except that the
owner must refund the $5.00 key deposit.
JOSEPH A. D'AGOSTA