DOCKET NUMBERS: CF 410089-RT & EA 410152-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
APPEAL OF DOCKET NOS.:CF 410089-RT &
: EA 410152-RO
ALEXANDRA STACY DRO DOCKET NOS.: 052322/CF
& STAHL ASSOCIATES PETITIONER : 410089-RT
ORDER AND OPINION TERMINATING ONE PROCEEDING AND
REMANDING ONE PROCEEDING ON APPEAL
The abovenamed petitioners, tenant and owner, filed timely Petitions for
Administrative Review against orders issued on May 26, 1988 and December
22, 1989 by the Rent Administrator of the Tenant Objection Unit concerning
the housing accommodations known as 405 East 54th Street, Apartment 12N,
The Commissioner deems it appropriate to consolidate the petitions for
The first stabilization tenant of the subject apartment, Alexandra Stacy,
filed an Objection to the Apartment Registration on or about November 28,
1984, alleging she did not receive a copy of the registration.
On May 26, 1988 the Administrator issued the first of the herein appealed
orders (052322) terminating the proceeding on the grounds that the tenant
had not been in occupancy on April 1, 1984 and the owner was not required
to serve a copy of the 1984 registration (RR-1) on her.
The tenant filed a petition (CF 410089-RT) against the Administrator's
order alleging that she had never received a DC-2 Notice and that she was
entitled to a fair market rent appeal.
On September 20, 1989 the Administrator issued a notice reopening the
proceeding on the grounds that Ms Stacy, as the first stabilized tenant,
was entitled to receive a DC-2 Notice and a copy of the registration and
sending the owner a Fair Market Rent answering package advising of its
rights to submit comparability data.
On December 22, 1989 the Administrator issued the second herein appealed
order (052322/CF 410089-RT) establishing an initial fair market rent of
$744.40, computed on the 1984 controlled maximum rent of $628.93 plus an
$18.37 fuel cost adjustment plus 15% pursuant to Special Guideline 16.
The Administrator then updated the rent to reflect 3 subsequent renewal
DOCKET NUMBERS: CF 410089-RT 7 EA 410152-RO
leases and established a final rent of $894.47 as of November 1, 1988 to
October 31, 1989, which represented a reduction of $1208.36 from the
tenant's renewal lease rent of $2,102.83. The Administrator further
ordered a refund of $67,684.88 in excess rent and a rollback of all future
rents in accord with those established therein.
The order further stated that the owner had failed to submit competent
In its petition (EA 410152-RO) against the3 second order the owner, among
other things, alleges that the tenant's original objection was untimely
and incomplete; and that the owner did, in fact, submit comparability data
in response to the Administrator's notice on or about October 9, 1989
submitting a certified mail receipt and, among other things, a Schedule 1.
Comparability Data (RN 2522.3) listing 4 apartments within the building
and 6 outside the building which it urges should have been taken into
The Commissioner is of the opinion that the proceeding with respect to
the tenant's petition (CF 410089-RT) should be terminated and the
proceeding with respect to the owner's petition (EA 410152-RO) should be
remanded for further processing.
The subsequent actions of the Rent Administrator have effectively rendered
the tenant's petition moot and accordingly that proceeding should be
With respect to the owner's petition, it is undisputed that this was the
first stabilized tenant and she was not served with a DC-2 Notice and
registration. Since she was never served there is no question of
timeliness. The Commissioner finds that the owner was adequately put on
notice and the matter properly treated as a air market rent appeal.
However, the Commissioner is further of the opinion that the owner has
established that it did, in fact, timely submit comparability data which
somehow did not reach the record and was not considered in determining the
fair market rent.
The Commissioner, accordingly, further finds that the matter should be
remanded in order that comparability be considered, on notice to both
parties, and the rent redetermined accordingly.
The Commissioner notes that the filing of the owner's petition
automatically stayed the Administrator's order insofar as it directed a
refund of excess rent or permitted the tenant to deduct same from the
rent. That automatic stay is continued until a new order is issued on
In view of the large rent reduction ordered by the Administrator and to
minimize hardships on the parties, including the possibility of
substantial arrears if the owner is successful on remand, the Commissioner
finds that the prospective rent reduction of $1208.36 ordered by the
Administrator as abovenoted should be reduced by a half and an interim
rent of $1498.65 ($894.47 + half of $1208.36) plus adjustments for any
DOCKET NUMBERS: CF 410089-RT & EA 410152-RO
leases executed subsequent to October 31, 1989 be established as of the
first rent payment date occurring after 30 days from the date of issuance
Until that time the tenant may continue paying rent in accord with the
Administrator's order. Any arrears resulting herefrom are stayed until a
new order is issued on remand in which order the Administrator may also
provide for installment payment of arrears if necessary.
THEREFORE, pursuant to the Rent Stabilization Law and Code, it is
ORDERED, that the proceeding under CF 410089-RT be, and the same hereby
is, terminated and that the petition under EA 410152-RO be, and the same
hereby is, granted to the extent of remanding the proceeding to the Rent
Administrator for further processing in accord herewith. The order of the
Administrator is stayed as above set forth.