FG 220278 RO

                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO. FG 220278 RO
                                              :  DRO DOCKET NO.ZFC-220135-R
               SAUL PERLSTEIN                     

                                PETITIONER    : 

               On July 25, 1991, the above-named petitioner-landlord timely 
          refiled a Petition for Administrative Review against an order issued 
          on June 14, 1991, by the Rent Administrator, 92-31 Union Hall 
          Street, Jamaica, New York, concerning the housing accommodations 
          known as 1353 41st Street, Brooklyn, New York, Apartment No. 2nd 
          Floor, wherein the Rent Administrator listed the 
          monthly maximum collectible rent for the four room subject 
          apartment as $58.93 effective November 27, 1968.

          The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2202.7 of the Rent and Eviction Regulations 
          for New York City.

          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 1991 by the 
          tenant filling a rent overcharge complaint in which the tenant 
          stated in substance that he originally moved to the subject 
          apartment in July 1954 at a rent of $250.00 per month and that on 
          June 4, 1989, the rent was increased to $500.00 per month even 
          though the subject apartment was rent controlled.

          In answer to the tenant's complaint, the landlord stated in 
          substance that the complaint should be dismissed because the 
          tenant's wife was an owner of the subject premises who had sold 
          her interest in the subject premises.  In support of such 
          contention, the landlord submitted a copy of an insurance 
          certificate dated January 25, 1989 which indicated that the 
          tenant's wife Jean DePaola inherited a 1/12th interest in the 
          subject premises on December 3, 1982 upon the death of her parents 
          Dominick and Mary Madorma and that Jean DePaola sold her interest 
          in the subject premises to Vincent Madorma on December 21, 1984.  

          FG 220278 RO
          In addition, the landlord submitted a copy of a satisfaction of a 
          mortgage for the subject premises indicating that Dominick and 
          Mary Madorma and Vincent Madorma had taken out a mortgage for the 
          subject premises on June 9, 1970, and that such mortgage had been 
          satisfied on October 17, 1984.

          In reply to the landlord's answer, the tenants Rudolph and 
          Jean DePaola stated in substance that Rudolph DePaola was never an 
          owner of the subject premises and should therefore still be 
          considered a rent controlled tenant and that Jean DePaola denies 
          being the owner of the subject premises and denies ever receiving 
          a deed to the subject premises.

          Rent records for the subject apartment disclose that on June 
          14, 1990, under docket ZDE-220014-AD, the Rent Administrator 
          issued an order voiding the Landlord's Report of Statutory 
          Decontrol and that no appeal was taken from this order.

          In Order Number ZFG-220135-R, under appeal herein, the Rent 
          Administrator determined that the monthly maximum collectible 
          rent was $58.93 effective November 27, 1968.  Such rental amount 
          was based on an examination of the rent registration card for the 
          subject apartment which indicated that this was the last rent 
          listed for the subject apartment; and that the then landlords of 
          the subject premises had not applied for any maximum base rent 
          increases for the subject apartment from 1972 onwards.

          In this petition, including a supplemental petition, the 
          landlord alleges in substance that the Landlord's Report of 
          Statutory Decontrol should not have been voided since Jean DePaola 
          was an owner of the subject premises; that the prior owners to 
          Jean DePaola for many years were her parents and that pursuant to 
          Section 2202.7 of the Rent and Eviction Regulations, this 
          represented unique or peculiar circumstances which should have 
          been taken into account in determining the maximum rent of the 
          subject apartment; that the maximum rent should have been set in 
          accordance with the rents of comparable housing accommodations 
          pursuant to Section 2202.22 of the Rent and Eviction Regulations 
          and that the rent should be increased in accordance with annual 
          maximum base rent increases.

          The Commissioner is of the opinion that this petition should 
          be granted in part.

          At the outset, the record reveals that the landlord did not 
          file a Petition for Administrative Review against the order 
          issued on June 14, 1990 which voided the Landlord's Report of 
          Statutory Decontrol.  Therefore such order is final and cannot be 
          collaterally attacked in the proceeding herein.

          Turning to the merits, the setting of the monthly maximum 
          collectible rent at $58.93 effective November 27, 1968, Section 

          2202.7 of the Rent and Eviction Regulations for New York City 
          provides in pertinent part that the Administrator may grant an 
          appropriate adjustment of a maximum rent where he finds that the 
          presence of unique or peculiar circumstances materially affecting 

          FG 220278 RO
          the maximum rent has resulted in a maximum rent which is 
          substantially lower than rents generally prevailing in the same 
          area for substantially similar housing accommodations.

          A monthly maximum collectible rent of $58.93 for a four room 
          apartment at 1353 41st Street in Brooklyn from November 27, 1968 
          to the present is a maximum rent substantially lower than the 
          rents generally prevailing in that area for substantially similar 
          housing accommodations.  The record in this case discloses that 
          since at least 1970 the subject premises has been owned by 
          relatives of one of the tenants herein (for a time such tenant was 
          a part owner of the subject premises); and that since 1968 no 
          landlord has applied for any type of rent increase for the subject 
          apartment until the present landlord acquired ownership.  Rather 
          the tenants herein since 1954 have continuously paid a monthly 
          rent of $250.00 for the subject apartment rather than the $58.93 
          registered rent.  The Commissioner is of the opinion that the 
          ownership by relatives of one of the tenants and the failure to 
          apply for appropriate rent increases since 1968 amounts to unique 
          or peculiar circumstances pursuant to Section 2202.7.  The 
          Commissioner is further of the opinion that pursuant to the 
          longstanding practice of the tenants herein to pay a rent of 
          $250.00 per month, that the setting of the monthly maximum 
          collectible rent at $250.00 effective November 27, 1968 up through 
          June 14, 1991 (the issuance date of the Rent Administrator's 
          order) would be appropriate with said amount including all maximum 
          base rent increases, fuel cost adjustments, major capital 
          improvement rent increases and rent increases for any improvements 
          made within the subject apartment up through June 14, 1991.  The 
          landlord would then be eligible to apply for 1992-93 maximum base 
          rent increases and maximum base rent increases for cycles 
          subsequent to 1992-93; to apply for fuel cost adjustments for 1992 
          and thereafter; and to apply for rent increases for any apartment 
          improvements and / or major capital improvements first installed 
          in 1992 of thereafter but not for any period prior thereto. 

          With regard to the landlord's contention that Section 2202.22 
          of the Rent and Eviction Regulations is applicable, it is noted 
          that such section applies only in cases where the maximum rent or 
          any fact necessary to the determination of the maximum rent is in 
          dispute between the landlord and tenant, or is in doubt or is not 
          known.  In this case, the maximum rent was known so that Section 
          2202.22 is not applicable.

          THEREFORE, in accordance with the provisions of the Rent and 
          Eviction Regulations for New York City, it is

          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 to show a 
          monthly maximum collectible rent for the subject apartment of 

          FG 220278 RO
          $250.00 from November 27, 1968 up through June 14, 1991 including 
          all maximum base rent increases, fuel cost adjustments, apartment 
          improvements and major capital improvement rent increases 
          appropriate prior to June 14, 1991.  The tenants may pay any 
          arrears in rent, if any, arising as a result of this order in 
          twenty four equal monthly installments.


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner



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