FG 410358 RO
STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO. FG 410358 RO
: DISTRICT RENT OFFICE
DOCKET NO. DK 410018 RP
Classic Properties, L.P., (L 3118034 RT)
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On July 26, 1991, the above-named petitioner filed a Petition for
Administrative Review of an order issued on July 3, 1991, by the Rent
Administrator, concerning the housing accommodations known as Apartment
7J at 2 Horatio Street, New York, New York, wherein the Administrator
determined the fair market rent 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.
In the herein-appealed order, the Rent Administrator, after affording
the current owner the opportunity to address the tenants' fair market
rent appeal on the merits in accordance with a July 26, 1989 Supreme
Court Order, determined that the Administrator's order previously issued
on November 3, 1986 should be affirmed, and that excess rent totalling
$38,740.90 (through September 30, 1986) had been collected.
In its petition, the owner contends that the tenants' fair market rent
appeal was untimely; that the owner provided full comparability data,
which the Division failed to use; that the Administrator erroneously
failed to grant it a rent increase for vacancy improvements; and that
the Administrator failed to serve a Summary Notice upon the owner, thus
depriving it of due process. With the petition, the current owner
resubmits a photocopy of documentation supporting its allegation that
vacancy improvements had been made by the prior owner. That
documentation had been first submitted by the then owner during
processing of the tenant's objection filed under Docket Number 001423,
which included a fair market rent appeal which was subsequently
dismissed as untimely filed.
The tenants did not raise any substantive objections to the owner's
petition for administrative review in their response.
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The Commissioner is of the opinion that the petition for administrative
review should be granted in part, and that the order of the
Administrator should be modified.
Section 2522.4 of the Rent Stabilization Code provides, in pertinent
part, that for dwelling units for which there has been an increase in
dwelling space or the installation of new equipment or improvements, the
monthly stabilization rent shall be increased by 1/40th of the total
cost of such added dwelling space, equipment or improvements.
The Commissioner finds that the Administrator erred in omitting from his
computations vacancy improvements which had been adequately documented
by a prior owner in the tenants' objection proceeding under Docket No.
001423. Accordingly, the legal regulated rent of $461.48, per month, as
found by the Administrator, is increased by $279.64, per month,
representing 1/40 of the sum expended for vacancy improvements,
totalling $11,185.81. The revised rent calculation chart is attached,
and hereby is made a part of this order. The total excess rent
collected through September 30, 1986 is $29,993.80, including excess
Concerning the timeliness of the tenants' fair market rent appeal: the
issue of timeliness was determined in a previous petition for
administrative review (AL 410317 RO). The subsequent court order did
not disturb the decision of the Commissioner with regard to timeliness.
The Commissioner finds no basis for reconsidering the issue in this
With regard to the comparability data provided by the owner: the owner
has failed to supply the requisite documentation of proof of service of
either the Initial Apartment Registration or the Notice of Initial Legal
Registered Rent on the first stabilized tenants of those apartments
which it indicated were to be utilized as comparables, rendering them
unusable. Consequently, the tenant's fair market rent was correctly
determined on the basis of the special guidelines order promulgated by
the New York City Rent Guidelines Board.
Concerning the allegation of the owner that the failure of the
Administrator to serve a summary notice denied the owner due process in
that it deprived the owner of the "opportunity to comment and urge the
Administrator to accept the comparables offered": the owner, on appeal,
was given full notice that certain documentation was required; was
granted several extensions of time in which to provide such information;
and, nevertheless, failed to provide the requisite information.
Accordingly, no denial of due process has taken place.
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
FG 410358 RO
hereby is, granted in part, and, that the order of the Rent
Administrator be, and the same hereby is, modified to the extent
hereinabove indicated. The total amount of excess rent owed to the
tenants is $29,993.80, through September 30, 1986.
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner