BL 610184 RO
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
DOCKET NO.: BL 610184 RO
SAMVAK REALTY COMPANY BY
NICK KALAJ, DRO DOCKET NO.: B3100080R
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On December 28, 1987 the above-named petitioner-owner filed a
Petition for Administrative Review of an order issued on November
25, 1987 by the District Rent Administrator, concerning housing
accommodations known as Apartment 6B, 529 East 235th Street, Bronx,
New York, wherein the 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 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 originally commenced by the filing of an
overcharge complaint form by the tenant with the New York City
Conciliation and Appeals Board, one of the predecessor agencies to
the Division of Housing and Community Renewal (DHCR). The tenant
took occupancy pursuant to a lease commencing April 1, 1980 and
expiring March 31, 1982 at a monthly rent of $319.80.
In answer, the owner stated that the complainant tenant was the
first stabilized tenant to take occupancy after the death of the
rent controlled tenant.
BL 610184 RO
The owner submitted a copy of Landlord's Order of Maximum Base Rent
effective January 1, 1972, the 1979 Maximum Base Rent Master
Building Rent Schedule, and a rental history for the complaining
tenant from April 1, 1980 through the lease beginning April 1,
In the order herein appealed, the District Rent Administrator
adjusted the initial legal regulated rent by establishing a fair
market rent of $293.58 effective April 1, 1980, the commencement
date of the initial rent stabilized lease, and directed the owner
to refund to the tenant of excess rent in the amount of $655.50
through March 31, 1982.
In this petition, the owner contends that the District Rent
Administrator's Order is incorrect and should be modified because
the 1978 Maximum Base Rent (MBR) was $245.89, and not $244.65 as
stated by the Administrator; the Administrator should have used the
1980 MBR which was effective February 1, 1980, two months before
the complaining tenant took occupancy; the 1972 MBR contained an
error in room count which affects the rent; and the owner could
have charged 12% in addition to the 20% "vacancy factor" in the
complaining tenant's initial lease.
The Commissioner is of the opinion that this petition should be
granted in part.
With regard to the owner's contention that the 1980 Maximum Base
Rent rather than the 1978 Maximum Base Rent should have been used
in calculating the fair market rent, Special Fair Market Guidelines
Order No.11 provides that for apartments rented between July 1,
1979 and June 30, 1980 to a first stabilized tenant after vacancy
decontrol, the 1978 Maximum Base Rent should be used in calculating
the fair market rent. Since the subject apartment herein was
rented to the first stabilized tenant commencing April 1, 1980, the
Commissioner finds that it was proper to use the 1978 Maximum Base
Rent rather than the 1980 Maximum Base Rent in calculating the fair
The Commissioner further finds that the owner was not entitled to
a 12% increase in addition to the 20% special guideline for the
complaining tenant's initial lease. Pursuant to Guideline 11 the
12% increase only applies to two year initial stabilized leases of
previously stabilized apartments or renewals thereof and has no
application in the establishing of the initial stabilized rent
after vacancy decontrol.
BL 610184 RO
The owner asserts that an error in room count in the 1972 MBR has
resulted in a lower Maximum Base Rent than it should be entitled
to. However, the owner failed to file a challenge to the 1972 MBR
and may not do so in this proceeding.
As for the owner's assertion that a 1978 MBR figure of $245.89
should have been used by the Administrator rather than $244.65,
review of DHCR rent control records indicates that the owner was
entitled to an adjustment to the MBR not considered by the
Administrator, resulting in a 1978 MBR of at least $245.89.
Recalculation of the fair market rent utilizing a 1978 MBR of
$245.89 results in a fair market rent of $295.07 ($245.89 increased
by 20% pursuant to Special Guidelines Order Number 11).
The initial legal regulated rent is adjusted from $319.80 to
$295.07 effective April 1, 1980. The commencement date of the
initial rent stabilized lease. The total excess rent is $618.25
for the period from April 1, 1980 to March 31, 1982, including
The owner is directed to roll back the rent to the lawful
stabilized rent consistent with this decision and to refund or
fully credit against future rents over a period not exceeding six
months from the date of receipt of this order, the excess rent
collected by the owner.
In the event the owner does not take appropriate action to comply
within sixty (60) days from the date of this order, the tenant may
credit the excess rent collected by the owner against the next
month(s) rent until fully offset.
The owner is directed to reflect the findings and determinations
made in this order on all future registration statements, including
those for the current year if not already filed, citing this order
as the basis for the change. Registration statements already on
file, however, should not be amended to reflect the findings and
determinations made in this order.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
BL 610184 RO
ORDERED, that this petition be, and the same hereby is, granted in
part and that the District Rent Administrator's order be, and the
same hereby is, modified in accordance with this order and opinion.
JOSEPH A. D'AGOSTA