EH 410236-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.:
                                        EH 410236-RO;
          WEMBLY REALTY,
                                        DRO DOCKET NO.:
                        PETITIONER      BE 510523-R

----------------------------------x

  ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                                
                                
On  August  20,  1990, the above-named petitioner-owner  filed  a
Petition  for  Administrative Review against an order  issued  on
September  26,  1990  by a Rent Administrator concerning  housing
accommodations  known as Apartment 5-L at 305 West  45th  Street,
New  York,  New  York,  wherein the District  Rent  Administrator
determined  that  the owner had overcharged  the  tenant  in  the
amount of $320.05 including treble damages.

The   issue   in  this  appeal  is  whether  the  District   Rent
Administrator's order was warranted.

The applicable sections of the Law are Section 26-516 of the Rent
Stabilization  Law,  Section  2526.1(a)  of  the   current   Rent
Stabilization Code.

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 by the filing of a rent
overcharge  complaint by the tenant, in which he stated  that  he
had  commenced occupancy in November, 1985 at a rent  of  $356.89
per month.

The owner filed an initial registration statement for the subject
premises  effective April 1, 1984.  The registration  stated  the
legal rent as $289.58.


The  owner  was  served  with a copy of  the  complaint  and  was
directed  to submit a complete rent history from the  base  date,
including  copies  of all leases.  The owner complied  with  this
request.

In  an  Order  No.  BE  510523-R issued on August  15,  1990  the
District  Rent Administrator determined that the tenant had  been
overcharged  in the amount of $103.80 which with the addition  of
treble  damages and excess security of $8.65 amounted to a  total
overcharge  of  $320.05.  An overcharge of $8.65  per  month  was
found in the tenant's vacancy lease, as based on a lawful rent of
$348.24, instead of $356.89.

In  his petition, dated August 20, 1990, the owner contends  that
the  Administrator's order should be reversed due to an error  of
law and fact.  The petition notes that the tenant's vacancy lease
was  executed under Guidelines 17, which authorizes a $15.00  per
month supplement for rents which were less than $300.00 per month
on  September 30, 1985.  Since the registered rent on  that  date
was  $289.58, the owner contends that the Administrator's failure
to  include  the  supplement  in his calculations  was  erroneous
especially since the owner had specifically mentioned this to the
Administrator in his letter of July 9, 1990.  Furthermore, if for
some  reason  the  owner was not entitled to the supplement,  the
imposition of treble damages was improper because it  was  not  a
willful  overcharge.   Finally, the  owner  states  that  if  the
supplement  is  considered, as he maintains is proper  under  the
guidelines, that the tenant was actually undercharged.

The  Commissioner  is  of the opinion that the  owner's  petition
should be granted.

The  Administrator's calculations fail to include the  Guidelines
17  supplement of $15.00 per month for apartments for  which  the
lawful rent was less than $300.00 on September 30, 1985.  In  the
instant  case,  the  inclusion of the supplement  eliminates  the
$8.65 overcharge that was found in the order.  The lawful rent is
properly calculated as follows:


Rent on 09/30/85                                                                -
                                                       $ 289.58
 Plus Guidelines 17: 11.5%
 (4% guidelines & 7.5% vacancy allowance               -            33.30
                                                       $ 322.88
 Plus Supplement - not to exceed
 $334.50 for one-year vacancy lease          -            15.00
                                                       $ 334.50
       (Calculations cont'd.)


 Plus Improvements pursuant to
 Section 2522.4(a) and (4)                                            -         $
                                                       25.36

                                   Total          =            ($
                                                  359.86)
                                                       ========
                                                       
Rent actually charged                                                      -
                                                       $ 356.89



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 and that the Administrator's order be and the same hereby
is amended in accordance with this order and opinion.


ISSUED:




                                         ELLIOT SANDER
                                         Deputy Commissioner
    

TenantNet Home | TenantNet Forum | New York Tenant Information
DHCR Information | DHCR Decisions | Housing Court Decisions | New York Rent Laws
Disclaimer | Privacy Policy | Contact Us

Subscribe to our Mailing List!
Your Email      Full Name