STATE OF NEW YORK
                          OFFICE OF RENT ADMINISTRATION
                                   GERTZ PLAZA
                             92-31 UNION HALL STREET
                             JAMAICA, NEW YORK 11433

      APPEAL OF                              DOCKET NO.CC410167RO
          Glenwood Management Corp.       :  DISTRICT RENT OFFICE
                                             DOCKET NO.L3110103R
                                             TENANT: Joseph Ancis             

                            PETITIONER    : 

                              AFTER RECONSIDERATION

      On March 14, 1988, the above-named petitioner-owner filed a Petition for 
      Administrative Review against an order issued on February 18, 1988, by 
      the Rent Administrator, 10 Columbus Circle New York, New York, 
      concerning the housing accommodations known as 1385 York Avenue, New 
      York, garage space Apartment No.17B, wherein the Rent Administrator 
      determined the lawful stabilization rent for the garage as of September 
      11, 1985 and directed the owner to refund $3294.29 including interest on 
      the overcharge occurring on or after April 1, 1984.

      Said appeal was denied by the Commissioner in an order issued on March 
      15, 1993.                                          

      Subsequent thereto, the owner filed a request for reconsideration which 
      was granted in an order issued on April 26, 1993.

      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 on February 22, 1984 when the tenant filed  
      a rent overcharge complaint in which he alleged that during a period of 
      only four apartment leases there had been nine garage rent increases. 
      The tenant requested that garage rent increases be made to coincide with 
      apartment rent increases.                                           

      In response, the owner asserted that it had recalculated the garage 
      leases to conform with apartment leases, that it had voluntarily reduced 
      the garage rent and that it had offered the tenant a refund in the 
      amount of $3,161.28.

      In reply, the tenant confirmed the rent reduction but stated that it had 
      rejected the owner's refund offer and preferred to wait for the DHCR 



      In Order Number CDR32,675, the Administrator established the lawful 
      stabilized garage rent at $126.55 plus applicable sales tax effective 
      September 1, 1985.              

      In the appeal, the owner contends that the Administrator's order should 
      be modified because the calculations used are unfair in that the 
      Administrator made no provision for equalizing the permissible rent 
      increase for 1982 and 1983.  The problem arises because the tenant 
      executed a three year renewal lease for the apartment in September 1982 
      but did not renew the garage until September 1983.  The ensuing garage 
      lease term was for only two years to make the termination date of both 
      terms coincide.  Because of significant differences in rates between 
      guidelines #13 and guidelines #14, the percentage increase for the 
      garage in 1983 is much lower than the percentage increase for the 
      apartment.  The owner contends that the garage rent should be increased 
      at the same rate as the apartment.  The owner further contends that the 
      tenant provided inaccurate information-which may represent fraud-in that 
      the tenant did not pay for the garage space for the period May 1, 1979 
      through September 1, 1983 and the overcharge should be recalculated in 
      view of this non-payment.

      The tenant contends that the owner knowingly and deliberately misled and 
      overcharged the tenant, attempting initially to conceal its garage 
      ownership by billing under different names, and that treble damages, 
      based upon the willfulness of the overcharge, should be imposed.  The 
      tenant submits cancelled checks showing payment to Glenwood Management 
      for garage rent for the entire period, placed in issue by the owner 
      except for September, 1982 through August 31, 1983, the period when the 
      tenant, as stated in the complaint, did not use the garage.

      In reply, the owner contends that the garage rent payment checks show 
      that the tenant paid for space in another garage managed by the owner 
      but did not pay for space in the particular garage.  Therefore, the 
      owner argues, the tenant should be unable to bring an overcharge 
      complaint concerning the instant garage and the overcharge found should 
      be modified.  In the interest of fairness, the owner contends, it should 
      be entitled to a rent increase for the garage space at either the same 
      percentage as the apartment or a one year vacancy increase under 
      guideline #13 for the year when the space was unoccupied by the tenant.  
      Alternatively, the owner contends that pursuant to the Rent 
      Stabilization Code, it was entitled to a free market rent in September 
      1983 when the tenant again began to use the garage facilities.

      The commissioner is of the opinion that this petition should be granted 
      in part.

      Pursuant to Code Section 2520.6(r)(3) an owner must provided those 
      ancillary services, including garage facilities, which it was providing 
      on the applicable base date.  Where an ancillary service is provided 
      pursuant to a lease or rental agreement separate and apart from the 
      lease or rental agreement for the housing accommodation, the tenant is 
      not required to renew the lease or rental agreement upon its expiration.  
      In the instant case, the tenant opted not to renew the garage lease in 
      1982 but, after a one year hiatus rerented garage facilities in 

      September 1983, with the attendant effect of changing the base date of 


      the ancillary service to September 1, 1983.

      Section 2520.6(r)(4)(xi) of the Code entitles an owner to charge a 
      market rent for an ancillary service in an inital agreement with a 
      tenant to lease such service.  Since the agreement in September 1983 
      was, in essence, an initial agreement, the owner could charge a market 
      rent ($193.50) for the lease term.  The record indicates that the owner 
      voluntarily reduced the rent, effective November 1, 1984, to $143.48, 
      thereby waiving the higher rent.  Accordingly, the Commissioner has 
      modified the Administrator's rent calculation chart to reflect the 
      corrections made herein.

      Lease term     Rent     Effective : Explanation: Lawful  : Overcharge
                     charged  Date                     Rent        -0-
      9/1/83-8/31/85:$193.50: 9/1/83      Base Rent    $193.50

                     $204.00  4/1/84      Owner raised $193.50   $10.50 X 7
                                          rent                   mos + 

                     $143.48  11/1/84     Owner        $143.48    -0-

      9/1/85-8/31/87 $156.40  9/1/85      Guideline    $156.40     -0-
                                          16: 9%
                                          for a 2

                                          through 8/31/82 = $1920.46

                                          9/1/83 - 8/31/87  $  75.71

                                          Total Overcharges $1996.17

      The lawful garage rent as of August 31, 1987 is $156.40.

      The Commissioner finds that the owner's allegation of tenant fraud is 
      entirely without merit.  The garage facilities provided herein is an 
      attended garage without assigned spaces.  The record shows that the 
      owner provided such facilities as a base date ancillary service from 
      September 1, 1973 through August 31, 1982 and then again from September 
      1, 1983 through August 31, 1987.  The evidence of record shows that the 
      tenant paid and the owner received payment for garage facilities 
      provided by the owner as a service ancillary to the tenant's rental of 
      a rent stabilized apartment for the time period claimed by the tenant.

      Since the tenant did not file his own Petition for Administrative 


      Review, his request for treble damages and additional relief cannot be 
      considered herein.

      The Commissioner has determined in this Order and Opinion that the owner 
      collected overcharges of $1996.17.  This order may, upon expiration of 
      the period for seeking review of this Order and Opinion pursuant to 
      Article Seventy-eight of the Civil Practice Law and Rules, be filed and 
      enforced as a judgment or not in excess of twenty percent per month of 
      the overcharge may be offset against any rent thereafter due the owner.  
      Where the tenant credits the overcharge, the tenant may add to the 
      overcharge, or where the tenant files this order as a judgment, the 
      County Clerk may add to the overcharge, interest at the rate payable on 
      a judgment pursuant to Section 5004 of the Civil Practice Law and Rules 
      from the issuance date of the Rent Administrator's order to the issuance 
      date of the Commissioner's order.

      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.  The owner is further directed to adjust subsequent rents to 
      an amount no greater than that determined by this order plus any lawful 

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

      ORDERED, that this petition be, and the same hereby is, granted in part 
      and the Rent Administrator's order be, and the same hereby is, modified 
      in accordance with this order and opinion.


                                        JOSEPH A. D'AGOSTA
                                        Deputy Commissioner

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