DH410387RT
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.DH410387RT
QUINN AND MAGRADEY : DRO DOCKET NO.ZL3115712RT
PETITIONER :
------------------------------------X
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On August 29, 1989, the above-named petitioner-tenants filed a
Petition for Administrative Review against an order issued on July
26, 1989, by the Rent Administrator, 92-31 Union Hall Street,
Jamaica, New York, concerning the housing accommodations known as 17
West 71st Street, New York, New York, Apartment No. 9A, wherein the
Rent Administrator denied the tenants' fair market rent adjustment
application on the basis that the initial rent charged the tenants
did not exceed the fair market rent calculated pursuant to the
special fair market rent guideline promulgated by the New York City
Rent Guidelines Board for use in calculating fair market rent
appeals.
The Commissioner notes that this proceeding was filed prior to
April 1, 1984. Sections 2526.1 (a) (4) and 2521.1 (d) of the Rent
Stabilization Code (effective May 1, 1987) governing rent overcharge
and fair market rent proceedings provide that determination of these
matters be based upon the law or code provisions in effect on March
31, 1984. Therefore, unless otherwise indicated, reference to
Sections of the Rent Stabilization Code (Code) contained herein are
to the Code in effect on April 30, 1987.
The Administrative Appeal is being determined pursuant to the
provisions of Section 26-513 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 tenants' filing of a fair
market rent adjustment application and a rent overcharge complaint
in March, 1984. The tenants stated in substance that they moved to
the subject apartment on February 15, 1977 at a rental of $625.00
per month and that they were the first rent stabilized tenants to
occupy the subject apartment.
The owner submitted a rental history from the time the tenants
herein rented the subject apartment. An examination of rent records
DH410387RT
for the subject apartment discloses that the subject apartment had
been rent controlled immediately prior to occupancy by the tenants
herein.
In Order Number ZL3115712RT, the Rent Administrator determined
that the 1976 maximum base rent of the subject apartment was $545.95
and pursuant to Special Guidelines Order No. 8, must be adjusted by
an additional increase of 15% making a fair market rent of $628.99.
Since this amount exceeded the first negotiated rent of $625.00
charged the tenants herein, the tenants' fair market rent appeal was
dismissed by the Rent Administrator.
In this petition, the tenants allege in substance that the
prior tenant (they mention the last rent controlled tenant by name)
was paying a rent of less than $300.00 per month in 1976 so that
they do not understand why their rent was increased to over 110% of
such prior rent.
The Commissioner is of the opinion that this petition should be
denied.
The Rent Administrator correctly determined the fair market
rent on the basis of the 1976 maximum base rent of $546.95 increased
by 15% for a total of $628.99. Since this amount exceeds the
initial rent of $625.00 charged the tenants, the tenants' fair
market rent appeal was correctly dismissed. Contrary to the
tenants' contention on appeal, the fact that the rent controlled
tenant was actually paying a rent of less than $300.00 is not
relevant to the determination of the fair market rent herein since
the maximum base rent of $546.95 was greater than the rent the
controlled tenant was actually paying and the maximum base rent is
the figure that must be used in the calculation of the fair market
rent pursuant to Special Guideline No. 8. The maximum base rent is
determined on the basis of two year rent cycles and generally
represents the highest rent amount a rent controlled tenant could be
charged during such two year cycle but does not represent the actual
amount of rent a rent controlled tenant is paying which is generally
lower than the maximum base rent rate. Accordingly, the Rent
Administrator's order was warranted
DH410387RT
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, denied, and, that the order of the Rent
Administrator be, and the same hereby is, affirmed.
ISSUED
JOSEPH A. D'AGOSTA
Deputy Commissioner
|
