CC110240RO
                
                                  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.CC110240RO
                                              :    DRO DOCKET NO.AH110247R
              Time Equities Inc.,                  TENANT:William Pumphrey

                               PETITIONER     :
          ------------------------------------X

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


          On March 7, 1988 the above-named petitioner-owner filed a Petition 
          for Administrative Review against an order issued on February  1,
          1988 by a Rent Administrator, 92-31 Union Hall Street, Jamaica, New 
          York, concerning the housing accommodations known as Apartment No. 
          6E, 104-25 195th Street St. Albans, New York,  wherein  the  Rent
          Administrator determined that  the  owner  had  overcharged  this
          tenant.

          The Administrative Appeal is being  determined  pursuant  to  the
          provisions of Section 2526.1 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 
          issue raised by the administrative appeal.

          This proceeding was commenced by the tenant's filing  of  a  rent
          overcharge complaint on August 26, 1986.  The tenant had  assumed
          occupancy on June 1, 1979, pursuant to a two year lease at a rent 
          of $230.00 per month.

          In its answer, the current  owner  submitted  the  complete  rent
          history as well as an MCI order, Docket Number QCS000249-OM, issued 
          on August 1, 1986.

          In Order Number AH110247R, the Rent Administrator determined that 
          the tenant had been overcharged $12.37, including excess security 
          and interest.  The overcharge was found in  the  two  year  lease
          commencing June 1, 1986, which listed a rent of $320.05; the lawful 
          stabilized rent was $319.50.














          CC110240RO


          In this petition, the owner contends in substance that  the  Rent
          Administrator miscalculated the MCI increase by  using  the  rent
          charged on April 1, 1984 ($269.10) as the base rent instead of the 
          rent on September 1, 1984 ($287.94), as directed in the MCI order. 
          The owner also states that the prior owner improperly  failed  to
          collect the MCI increase.

          The tenant's reply states that the Administrator properly used the 
          1984 registration because the tenant did not receive a copy of the 
          registration in 1986, or for the two years after.

          In response, the current owner states that although the prior owner 
          had filed 1986 and 1987 registrations with the DHCR, no proof  of
          mailing to the tenant was found in its files.  Therefore, the owner 
          was sending copies of both registrations  to  the  tenant  again.
          Enclosed with the answer is a copy of a U.S. Postal Service receipt 
          for certified mail delivery to the tenant, dated June 16, 1988.

          The Commissioner is of the opinion that this petition  should  be
          granted.

          The Rent Administrator's calculation  of  the  MCI  increase  was
          incorrect because it improperly based the increase on the  lawful
          rent charged on April 1, 1984 instead of on  September  1,  1984,
          which was the base rent that was specified in the MCI order.

          This results in a permanent MCI increase  of  $12.58  instead  of
          $11.76 (MCI increase of 4.37% of September 1, 1984 rent of $287.94= 
          $12.58), and a lawful stabilized rent of $332.08 ($319.50 + $12.58) 
          effective September 1, 1986; to  which  is  added  the  temporary
          increase of $17.28 (6% of September 1, 1984 rent of $287.94), for 
          a collectible rent of $349.36 for the period from September 1, 1986 
          to September 1, 1987.  For the period from September 1,  1987  to
          August 31, 1988, the temporary increase is reduced to $1.61 (0.56% 
          of the September  1,  1984  rent  of  $287.94),  resulting  in  a
          collectible rent of $321.11 for that period.  Although the  owner
          states in the petition that the prior owner failed to collect the 
          MCI increase, the record indicates that the tenant was charged the 
          permanent MCI increase and arrears.

          It is noted that an overcharge of $0.55 per month remains for the 
          period from June to August, 1986, for a total of $1.65.

          Finally, the tenant's claim that the owner was not entitled to  a
          rent increase because  he  did  not  receive  the  1986  or  1987
          registration statements will not be considered by the Commissioner 
          because the tenant did not file  a  petition  for  administrative
          review. 









          CC110240RO





          A copy of this order will be sent to the current occupant of  the
          subject apartment.

          THEREFORE,  in  accordance  with  the  provisions  of  the   Rent
          Stabilization Law and code, it is

          ORDERED, that this petition for administrative review be, and the 
          same  hereby  is  granted  and,  that  the  order  of  the   Rent
          Administrator be, and the same hereby is, modified in  accordance
          with this order and opinion.



          ISSUED:




                                                                            
                                                      JOSEPH A. D'AGOSTA
                                                      Deputy Commissioner






           
               






    

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