BL110366RO


                                  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.  BL110366RO
                                              :  DRO DOCKET NO. 038112
          A.HABER MGMT. CORP.                    TENANT:  J. DEUTSCH

                                PETITIONER    : 
          ------------------------------------X                             
            ORDER AND OPINION REMANDING PROCEEDING FOR FURTHER PROCESSING

               On December 15, 1987 , the above-named petitioner-owner filed 
          a Petition for Administrative Review against an order issued on     
          November 10, 1987 by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 109-20 Queens Boulevard, Queens, New York, apartment no. 
          3C, wherein the 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 Administrative Appeal is being determined pursuant to the 
          provisions of Section 2522.3 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 issues raised by the administrative appeal.  

               This proceeding was commenced by the tenant's filing on 
          November 16, 1984 an objection to the initial registered rent in 
          which the tenant stated among other things that she had moved to the 
          subject apartment on August 1, 1984 at a monthly rental of $650.00 
          and that said rent was not the legal rent.

               In response to the complaint, the owner stated that the 
          apartment was vacancy decontrolled on July 1,1984 and the tenant was 
          the first rent stabilized tenant and that the stabilized rent 
          included an allowance for improvements made to the subject 
          apartment.

               In Order Number 038112, the Rent Administrator determined the 
          fair market rent of the subject apartment at $375.88 effective 
          August 1, l984, the date of the commencement of the initial rent 
          stabilized lease, solely on the basis of the special fair market 
          rent guidelines order.  

               In this petition, the owner contends in substance that the Rent 
          Administrator's order is incorrect and should be modified because 1) 
          the rent established therein does not include a rent increase for 







          BL110366RO

          apartment improvements;  2)  the Rent Administrator failed to 
          consider the owner's submission for a comparability study; and 3) 
          the Rent Administrator used an incorrect figure as the maximum rent.

                In answer to the petition, the tenant contends that the Rent 
          Administrator's order is correct and should be upheld.  

               The Commissioner is of the opinion that this proceeding should 
          be remanded.  

               Section 2522.3(e) of the Rent Stabilization Code provides in 
          pertinent part that in determining Fair Market Rent Appeals, 
          consideration shall be given to the applicable guidelines 
          promulgated for such purposes by the Rent Guidelines Board and to 
          rents generally prevailing for substantially similar housing 
          accvommodations in buildings located in the same area as the housing 
          accommodation involved.  The rents for these comparable housing 
          accvommodations may be considered where such rents are:

                    1) Legal regulated rents, for which the time to file a 
               Fair Market Rent appeal has expired and no Fair Market Rent 
               Appeal is pending, or the Fair Market Rent Appeal has finally 
               been 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.

               In the instant case, the owner was not afforded an opportunity 
          to submit post July 1, 1974 comparability data as outlined above.  
          Accordingly, the proceeding must be remanded to allow such a 
          submission.  The tenant should then be given an opportunity to 
          comment on any submission by the owner.  

               Review of the record confirms that the owner submitted 
          documentation, i.e. invoices and cancelled checks in support of its 
          claim for a rent increase based on apartment improvements
          and that the tenant commented thereon.  However, the Administrator's 
          order did not indicate whether any consideration had been given to 
          the improvements claim.  Upon remand, the Rent Administrator should 
          give consideration to whether the alleged improvements warrant a 
          rent increase as claimed by the owner.  

               Further the Rent Administrator should determine whether the 
          correct maximum base rent rate was used and whether the owner was 
          entiutled to a fuel cost adjustment pursuant to the special fair 
          market rent guideline.
               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 for further processing in 
          accordance with this order and opinion.  The automatic stay of so 
          much of the Rent Administrator's order as directed a refund is 


          BL110366RO

          hereby continued until a new order is issued upon remand.



          ISSUED
                                                                        
                                          LULA M. ANDERSON
                                          Deputy Commissioner




                     




































    

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