DI 210353 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



          ----------------------------------X
          IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW 
          APPEAL OF                               DOCKET NO.: DI 210353-RO

                 OCEAN REALTY COMPANY,
                                                  DISTRICT RENT ADMINISTRATOR'S
                                                  DOCKET NO.:  ZK 3108098-T
                                  PETITIONER
          ----------------------------------X                                   


          ORDER AND OPINION REMANDING PROCEEDING TO THE RENT ADMINISTRATOR 


          On September 28, 1989 the above-named  petitioner-owner  filed  a
          Petition  for  Administrative  Review  against  an  order  issued
          September 7, 1989 by a Rent Administrator concerning the  housing
          accommodation  known  as  Apartment  6A,  7100  Ridge  Boulevard,
          Brooklyn, New York.
           
          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.

          The original proceeding was initiated  by  the  first  stabilized
          tenant on July 23, 1985, by filing a  fair  market  rent  appeal.
          The tenant assumed occupancy on May 1, 1985  pursuant  to  a  two
          year lease at a rent of $525.00 per month.

          A copy of the complaint was served upon the owner  along  with  a
          notice advising the owner that the complaint was in reference  to
          fair market rent and rent overcharge.

          In Order Number K 3108098-T, issued on September 7, 1989 the Rent 
          Administrator  adjusted  the  initial  legal  regulated  rent  by
          establishing a fair market rent of $413.32 effective May 1, 1985, 
          the commencement  date  of  the  initial  stabilized  lease,  and
          determined that excess rent had been collected in the  amount  of
          $6,435.42, through September 30, 1989.


          In  its  petition  the  owner  contends  that  the  Administrator
          incorrectly stated that comparability data on similar  apartments
          had not been submitted by the owner, but that such data  actually
          was submitted.  Enclosed with the  petition  are  copies  of  the
          Division  f  Housing  and  Community  Renewal's  (DHCR's)   form-
          Schedule A listing the June 30, 1974 rents for the subject  line,
          which indicated that they were all rent controlled on that  date,
          and the listing of the June 30, 1974 rent for a  line  of  4-room
          apartments  in  another  building,  which  the  owner  claims  is
          comparable to the subject building.  The  second  list  indicated






          DI 210353 RO
          that one apartment was stabilized on that date. 

          The tenants'  answer  states,  inter  alia,  that  the  allegedly
          comparable building at 8701 Shore Road is not comparable  to  the
          subject-building and is located in a different neighborhood.

          The Commissioner is of the opinion that this proceeding should be 
          remanded to the Rent Administrator for a new determination.

          Pursuant to Section 2522.3(e) and 9f) the Rent Stabilization Code 
          effective May 1, 1987, for fair market rent appeals  filed  after
          April 1, 1984, comparability will  be  determined  based  on  the
          following:

               (e)...(1)  Legal  regulated  rents,  for  which
                         the time to file a Fair  Market  Rent
                         Appeal  has  expired  and   no   Fair
                         Market Rent Appeal is  then  pending,
                         or the Fair Market  Rent  Appeal  has
                         been  finally   determined,   charged
                         pursuant  to   a   lease   commencing
                         within a 4 year period prior  to,  or
                         a  one  year  period  subsequent  to,
                         the   commencement   date   of    the
                         initial   lease   for   the   housing
                         accommodation involved; and

                    (2)  At the owner's option, market  rents
                         in  effect  for   other   comparable
                         housing accommodations on  the  date
                         of  the  initial   lease   for   the
                         housing  accommodation  involved  as
                         submitted by the owner

               (f)       Where the  rents  of  the  comparable
                         housing     accommodations      being
                         considered   are   legal    regulated
                         rents, for which the time to  file  a
                         Fair   Market   Rent    Appeal    has
                         expired, and such rents  are  charged
                         pursuant  to  a  lease  ending   more
                         than   1   year    prior    to    the
                         commencement  date  of  the   initial
                         lease   for   the   subject   housing
                         accommodation, such  rents  shall  be
                         updated by guidelines  increases  for
                         1  year  renewal  leases,  commencing
                         with the expiration  of  the  initial
                         lease  for  the  comparable   housing
                         accommodations to a  date  within  12
                         months prior to the  renting  of  the
                         housing accommodations involved.

          The Commissioner finds that  in  this  case  the  owner  was  not
          afforded an opportunity to submit comparability data pursuant  to
          the  requirements  of  the  current  Rent   Stabilization   Code.
          Therefore, the Commissioner finds that the proceeding  should  be
          remanded to the Administrator for further processing in order  to
          afford the owner an  opportunity  to  submit  comparability  data






          DI 210353 RO
          pursuant to the requirements of the current code.  

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

          ORDERED, that the owner's petition be, and the  same  hereby  is,
          granted to  the  extent  of  remanding  this  proceeding  to  the
          District Rent Administrator for further processing in  accordance
          with this order and opinion.  The automatic stay of  so  much  of
          the District Rent Administrator's order as directed a  refund  is
          hereby continued  until  a  new  order  is  issued  upon  remand.
          However, the Administrator's determination as to the rent is  not
          stayed and shall remain in effect,  except  for  any  adjustments
          pursuant to lease renewals, until the Administrator issues a  new
          Order upon remand. 



          ISSUED:

                                                  ------------------------
                                                  JOSEPH A. D'AGOSTA
                                                  Acting Deputy Commissioner
    

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