Docket No. BK410229RT
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.: BK 410229RT
DISTRICT RENT
ADMINISTRATOR'S DOCKET
George H. Kessler NO.: 7MBC00088M(7M07508M)
PETITIONER
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
The Commissioner has reviewed all the evidence in the record
and has carefully considered that portion of the record relevant to
the issues raised by the petition. The subject premises of the
petition is 153 West 57th Street, Apt. 3C, New York, New York.
The issue in this proceeding is whether the Administrator's
order was correct.
On appeal, the tenant argues that the Administrator's order
finding that the owner is eligible for a 1986-87 Maximum Base Rent
(MBR) increase is incorrect. The tenant argues that the owner's
eligibility for a 1984-85 MBR increase was denied by the
Administrator. According to the tenant, had the 1984-85 MBR
increase been granted, the maximum collectable rent (MCR) would've
been $275.37. However, the tenant continues, since the 1984-85 MBR
increase was denied the actual MCR was $256.16. Neverthless, the
owner "illegally" stated the MCR as $275.37 in applying for the
1986-87 MBR increase. As evidence for his allegations, the tenant
includes with his petition a copy of an order allegally issued by
the Administrator on February 27, 1986 under the D.H.C.R. Docket
Number LC000189BC, which denies the establishment of 1984-85 MBR
because "claimant" has not submitted sufficient evidence that the
owner's rate of return on equity "exceeds or should exceed 8 1/2%
of the assessed value of the property."
The Commissioner is of the opinion that this proceeding should
be denied.
An examination of DHCR files reveals that the Administrator
granted the owner's eligibility to raise 1984/85 MBR rents under
Docket #LC000062RE on September 9, 1985. The Commissioner finds
Docket No. BK410229RT
that Administrator's order LC000189BC, which the tenant cites on
appeal in support of his contention that the owner was denied a
1984/85 MBR increase, did not despite its heading deny the owner
eligibility to increase 1984/85 MBRs. Rather, this order is
actually an order denying the tenant's challenge to that
eligibility on the grounds that:
"Claimant has not submitted sufficient documental
evidence that landlord's return of equity exceeds or
should exceed 8 1/2% of the assessed value of the
property."
The Commissioner can understand how the tenant may have been
misled into believing that the above-captioned order represented a
finding by the Administrator that the owner should be denied
eligibility to increase MBRs for the 1984/85 cycle at the subject
premises. An examination of the order nonetheless reveals that the
order was addressed only to the tenant. The Commissioner is of the
opinion that this order "Denying Establishment of 1984/85 Maximum
Base Rents" is an order denying tenant's challenge to the owner's
eligibility for a 1984/85 MBR increase, apparently on the grounds
that the "claimant", did not submit "sufficient documental
evidence" to support his claim at challenge that the owner's return
on equity was too great to permit it to receive eligibility to
raise the MBR.
The Commissioner notes that E.D.S. Management Corp., the owner
named in this proceeding, responded to the tenant's petition by
stating that it was no longer the owner of the subject premises.
As per DHCR records, the current owner of the subject premises is
153 W. 57th Associates.
THEREFORE, in accordance with the provisions of the Rent and
Eviction Regulations, 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
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