CA 410131 RO
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.: CA 410131 RO
REGENCY JOINT VENTURE,
DRO DOCKET NO.: L 3113428 R
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On January 19, 1988, the above-named petitioner filed a Petition
for Administrative Review against an order issued on December 24,
1987, by the District Rent Administrator, 10 Columbus Circle, New
York, New York, concerning housing accommodations known as
Apartment 28C at 245 East 63rd Street, New York, New York wherein
the District Rent Administrator determined that the tenant had
been overcharged.
The Commissioner notes that this proceeding was initiated prior
to April 1, 1984. Sections 2526.1(a)(4) and 2521.1(d) of the
Rent Stabilization Code (effective May 1, 1987) governing rent
overcharge and fair market rent proceedings provide that
determination of these matters be based upon the law or code
provisions in effect on March 31, 1984. Therefore, unless
otherwise indicated, reference to Sections of the Rent
Stabilization Code (Code) contained herein are to the Code in
effect on April 30, 1987.
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 a rent
overcharge complaint 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 December 1,
1983 and expiring January 30, 1985 at monthly rent of $980.51.
The owner was served with a copy of the complaint and was
requested to submit rent records to proved the lawfulness of the
rent being charged. The owner submitted the required rent
records.
In Order Number CDR 32,201, the District Rent Administrator
established the lawful stabilized rent for the tenant's initial
lease at $951.37 and directed the owner to refund overcharges in
the amount of $771.95, including interest on the overcharge
CA 410131 RO
collected on or after April 1, 1984.
In this petition, the owner contends that the Rent Administrator
failed to include a vacancy allowance for the tenant's initial
lease commencing December 1, 1983; that the owner was entitled to
a 10% vacancy allowance for that lease under Guideline 15, and
that the tenant was not overcharged.
The Commissioner is of the opinion that this petition should be
granted.
Rent Guideline Board Order Number 15, applicable to leases
commencing between October 1, 1983 and September 30, 1984,
provides for a 15% vacancy allowance where no vacancy allowances
have been charged since July 1, 1975, a 10% vacancy allowance
where a vacancy allowance was last charged between July 1, 1975
and June 30, 1979, a 5% vacancy allowance where vacancy
allowances totalling more than 0% but less than 15% were charged
since July 1, 1979, and no vacancy allowance where vacancy
allowances totaling 15% or more were charged since July 1, 1979.
In this case, prior to the tenant's initial lease commencing
December 1, 1983 under Guideline 15, a vacancy allowance was last
charged for the subject apartment between July 1, 1975 and June
30, 1979. The owner was therefore entitled to a 10% vacancy
allowance for the tenant's initial lease.
Recalculation of the lawful stabilized rent to include the
correct vacancy allowance for the tenant's initial lease
indicates that the tenant was not overcharged.
Any arrears owed by the tenant as a result of this order may be
paid by the tenant in equal monthly installments over the course
of the next 12 months. If the tenant should vacate after the
issuance of this order or have already vacated, all arrears will
be payable immediately.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
ORDERED, that this petition be, and the same hereby is, granted
and that the District Rent Administrator's order be, and the same
hereby is, revoked, and it is determined that the tenant was not
overcharged.
ISSUED:
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ELLIOT SANDER
Deputy Commissioner
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