FG 420257 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 420257 RO
                                              :  DRO DOCKET NO.ZFE 420168-R
               LEON S. POLL                     

                                PETITIONER    : 


               On July 24, 1991, the above-named petitioner-landlord filed a 
          Petition for Administrative Review against an order issued on June 
          21, 1991, by the Rent  Administrator,  92-31  Union  Hall  Street,
          Jamaica, New York, concerning the housing accommodations known  as
          240 West End Avenue, New York, New York, Apartment No. 16A.

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

               The issue herein is whether  the  maximum  collectible  rents
          (MCR) of the subject apartment were correctly determined.

               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  initiated  on  May  17,  1991,  by  the
          tenant's filing of a rent overcharge complaint.

               The Rent Administrator's order, appealed herein,  listed  the
          monthly MCR rates for the subject apartment as  $882.38  effective
          January 1, 1989, $948.56 effective January 1,  1990,  and  $952.17
          effective January 1, 1991 not including any fuel cost  adjustments
          for which the landlord may have filed and may have  been  eligible
          to collect.

               This order was based upon an examination of the rent  records
          for the subject apartment.  Such records disclosed  that  in  both
          1989 and 1991 the MCR rate reached the  maximum  base  rent  (MBR)
          rate in less than a full 7 1/2% MBR increase  so  that  for  those
          years, the landlord was not entitled to receive a full 7 1/2%  MBR

               In this petition, the landlord alleges in substance that  the
          monthly MCR rates for the subject apartment are $917.77  effective
          January 1, 1989, $986.60 effective January 1, 1990,  and  $1034.33
          effective January 1, 1991.

          FG 420257 RO

               The Commissioner is of the opinion that this petition  should
          be denied.

               An examination of the rent records in  this  case,  including
          MBR records from 1972 to the present, discloses that  the  January
          1, 1989, January 1, 1990, and January 1, 1991  monthly  MCR  rates
          for the subject apartment were correctly determined.  Accordingly, 
          the Rent Administrator's order was warranted.

               The landlord apparently based his calculations on his listing 
          of the 1987 adjusted  MBR  rate  as  $764.60  (correct  unadjusted
          figure is $749.47 adjusted to $759.47)  which  the  landlord  then
          increased to $957.71  as  the  adjusted  1988  MBR  rate  (correct
          unadjusted figure is $872.38 adjusted to $882.38).  Since the  MBR
          cycle increase  from  1986-87  to  1988-89  was  16.4%  above  the
          unadjusted rate of $749.47 to $872.38 and then adjusted by  $10.00
          to $882.38 due to a service increase, the landlord's increase from 
          $764.60 to $957.71 is clearly incorrect.  It  is  noted  that  the
          landlord in the order appealed herein was credited with  a  $29.58
          increase in the MCR due to a labor cost adjustment pursuant to  an
          earlier order effective March 1, 1987 under docket  ZLC-000050-AC,
          but in said earlier order it was stated that the  MBR  rate  would
          not be increased due to the labor cost adjustment.  In addition as 
          noted by the Rent Administrator in some of the years  in  question
          the landlord was correctly not given a full 7  1/2%  MBR  increase
          because in order to effectuate this full increase, the  MCR  would
          have to exceed the MBR and this is not permissible.

               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, denied,  and,  that  the  order  of  the  Rent
          Administrator be, and the same hereby is, affirmed.


                                          ELLIOT SANDER
                                          Deputy Commissioner


          FG 420257 RO


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