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 NO.CD210142RO
: DRO DOCKET NO.049245
MONTGOMERY APARTMENTS ASSOCIATES TENANT: HECTOR MANZANET
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On April 20, 1988, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on March
29, 1988, by the Rent Administrator, 92-31 Union Hall Street,
Jamaica, New York, concerning the housing accommodations known as
822 Ocean Avenue, Brooklyn, New York, Apartment No.6H wherein the
Administrator determined that the owner had collected an overcharge.
The Administrative Appeal is being determined pursuant to the
provisions of Section 2522.3 of the Rent Stabilization Code.
The issue herein is whether the Rent Administrator's order was
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.
The tenant commenced this proceeding in April 1984 by filing
a rent overcharge complaint.
In answer to the complaint, the owner stated that the subject
apartment had been decontrolled in 1976, that the rent charged at
that time was the fair market rent arrived at by using the special
guideline increase and averaging the amount with the average rent of
stabilized apartments in the same line.
In the order here under review, the Administrator established
the initial legal regulated rent at $168.95 effective February 1,
1977 and directed the owner to refund excess rent of $2600.88
including excess security.
In its appeal, the owner contends that the order is incorrect
and should be reversed because the initial rent charged upon
decontrol was less than could have been charged, using the special
guideline alone. Since all increases were according to the
guidelines, there was no further overcharge.
Although afforded the opportunity to do so, the tenant did not
reply to the petition.
The Commissioner is of the opinion that this petition should be
Review of DHCR records discloses that the 1976/77 Maximum Base
Rent (MBR) was $233.37. Special guidelines #8, in effect at the
time the subject apartment was rented to the first stabilized
tenant in February 1977, permitted a rent increase of 15% above the
1976 MBR. Applying the permitted percentage yields a rent equal to
$268.38. The evidence of record indicates that the first stabilized
rent was $200.00, well within the permissible rent to be charged.
Accordingly, the Commissioner finds that the Rent Administrator
erred and that there was no excess rent owed to the tenant.
If the owner has already complied with the Rent Administrator's
order and there are arrears due to the owner as a result of the
instant determination, the tenant is permitted to pay off the
arrears in 24 equal monthly installments. Should the tenant vacate
after the issuance of this order or have already vacated, said
arrears shall be payable immediately.
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 and that the order of the Rent Administrator be, and the
same hereby is, revoked.
JOSEPH A. D'AGOSTA