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. BI210252RO
: DRO DOCKET NO.K3103387T
GARY WASHINGTON TENANT: SHIRLEEN FOXWORTH
PETITIONER :
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On September 30, 1987, the above-named petitioner-owner filed
a Petition for Administrative Review against an order issued on
September 9, 1987, by the Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York, concerning the housing accommodations
known as 1233 St. John's Place, Brooklyn, New York, Apartment No.
1A, wherein the Rent Administrator determined that the tenant had
been overcharged.
The Administrative Appeal is being determined pursuant to the
provisions of Section 2520.11(e) of the Rent Stabilization Code.
The issue herein is whether the Rent Administrator's order was
warranted.
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 tenant's filing
of a fair market rent appeal in March 1984. The tenant stated that
she first moved to the subject apartment in 1983.
In answer to the complaint, the owner stated in substance that
the subject premises was not subject to the Rent Stabilization Law
and Code because it was purchased at a New York City Auction in 1978
at which time it was completely renovated using private funds. In
support of this contention, the owner submitted copies of a 1972
maximum base rent order for the subject premises showing it to have
been constructed in 1916 and to have contained 20 apartments in
1972; a copy of a contractor's cost statement dated October 23, 1984
stating that the cost of the proposed work on the subject premises
would be $100,000 and a copy of the new certificate of occupancy for
the subject premises dated March 5, 1985 showing the subject
premises to contain 16 housing units on four floors. Said
certificate of occupancy listed the completion date as December 11,
1984. The owner also submitted a copy of a mortgage note dated
March 1, 1985 in which the owner promised to pay the contracting
company $130,000.
BI210252RO
In docket number CDR 31,342, the Rent Administrator dismissed
the tenant's fair market rent appeal on the basis that the subject
apartment was substantially altered to the extent that it was not in
existence in its present form at the time the first stabilized
tenant (a prior tenant to the complaining tenant herein) took
occupancy so that the owner was entitled to charge a first rent
which is not subject to appeal. However the Rent Administrator then
determined that the subject apartment was subject to rent
stabilization and that a rent overcharge of $314.00 had occurred
during the occupancy of the complaining tenant.
In this petition, the owner alleges in substance that the
subject premises are not subject to rent regulation because of the
gut renovation done when the subject premises was vacant. The owner
further states that all interior walls and floors were removed; that
new walls, floors, new kitchens, new bathrooms, new plumbing, new
wiring and new insulation were installed; and that the cost of the
renovations was over $100,000. In support of his contentions, the
owner submitted a copy of the renovation contract marked paid and
dated July 8, 1978.
The Commissioner is of the opinion that this petition should be
denied.
The record indicates that the complaining tenant vacated the
subject premises in January, 1984 and that the renovation work was
not completed until the end of 1984. Accordingly, it cannot be
considered that the subject premises was substantially rehabilitated
at the time that the subject apartment was occupied by the
complaining tenant. Therefore, the Rent Administrator's order
finding a rent overcharge was warranted.
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, denied, and, that the order of the Rent
Administrator be, and the same hereby is, affirmed.
ISSUED
JOSEPH A. D'AGOSTA
Deputy Commissioner
BI210252RO
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