DI 410152 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
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IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: DI 410152 RO
LONDON TERRACE ASSOCIATES, DRO DOCKET NO.:L 3111432 RT
TENANT: CAPUTO AND ROSE
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN PART
On February 7, 1989, the above-named petitioner-owner timely
refiled a Petition for Administrative Review against an order
issued on February 4, 1988, by the Rent Administrator, Gertz Plaza,
Jamaica, New York, concerning the housing accommodations known as
410 West 24th Street, New York, New York Apartment No. 10J, wherein
the Rent Administrator determined that the owner had overcharged
the 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 originally commenced in March 1984 by the
filing of a rent overcharge complaint by the tenant. In an answer
to the complaint, filed in October 1987, the owner submitted a
complete set of leases for the subject apartment. In May 1986 the
owner had submitted a rental history for the subject apartment in
another proceeding (docket 026702 involving a tenant's objection to
the rent registration in which the tenant's fair market rent appeal
was dismissed) and such rental history included copies of bills and
cancelled checks for improvements made in the subject apartment
during a vacancy period in 1980 and a copy of a Division of Housing
and Community Renewal's (DHCR's) order granting a rent increase for
a Major Capital Improvement (MCI) rent increase in 1983.
DI 410152 RO
In Order Number CDR 32,575, the Rent Administrator determined that
the tenant had been overcharged in the amount of $399.80 and
directed the owner to refund such overcharge to the tenant.
In this petition, the owner contends in substance that there is no
rent overcharge in that the Rent Administrator failed to consider
rent increases for the apartment improvements and the MCI in
calculating the rents of the subject apartment and also didn't
credit the owner with electrical inclusion allowances.
The Commissioner is of the opinion that this petition should be
granted.
An examination of the records in this case and the proceeding under
docket 026702 which the Commissioner deems appropriate to consider
herein discloses that the owner is correct in its contention that
it was not credited with a rent increase for apartment improvements
- new refrigerator, new stove, new sink and new cabinets installed
in 1980 at a total cost of $761.89. The owner was entitled to a
rent increase of $19.05 for such installation - 1/40th of the total
cost. Further the owner was entitled to a rent increase of $5.11
under docket OM 4062 for a MCI or .67% of the June 1982 rent of
$762.00. However, the owner incorrectly took a rent increase of
$5.75 (.67% of the August 15, 1982 rent of $858.80) so that a small
rent overcharge remains. Further the record shows that electricity
is included in the rent of the subject apartment and that the owner
was not credited with electrical inclusion allowances to which it
was entitled.
Taking the aforementioned factors into account, the Commissioner
has recalculated the lawful stabilization rents and the amount of
the rent overcharge. The lawful stabilization rents and the amount
of the rent overcharge are set forth on the amended rent
calculation chart attached hereto and made a part hereof.
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.
Because this determination concerns lawful rents only through the
date of September 30, 1987 used in the Administrator's Order being
appealed, the owner is cautioned to adjust subsequent rents to an
amount no greater than that determined by this order plus any
lawful increases and to register any adjusted rents with this Order
and Opinion being given as the explanation for the adjustment.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
DI 410152 RO
ORDERED, that this petition for administrative review be, and the
same hereby is, granted in part, and that the order of the Rent
Administrator be, and the same hereby is, modified in accordance
with this Order and Opinion. The amount of the rent overcharge
through September 30, 1987 is $40.79.
ISSUED
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner
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