FJ 110180 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.: FJ 110180-RO
TERRACE REALTY PARTNERSHIP, DRO DOCKET NO.: ZDD-110047-RV
TENANTS: MARTIN AND ELAINE
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On October 9, 1991, the above-named petitioner-owner filed a
Petition for Administrative Review of an order issued on
September 27, 1991, by the District Rent Administrator, Jamaica,
New York, concerning the housing accommodation known as Apartment
FC-3 at 117-14 Union Turnpike, Kew Gardens, New York, wherein the
Administrator issued an Order directing the owner to issue the
tenants a renewal lease.
The issue herein is whether the Rent Administrator's Order was
The Commissioner has reviewed all of the evidence in the record
and has carefully considered that portion of the record relevant
to the issues raised by the administrative appeal.
This proceeding was commenced when the tenants filed a complaint
alleging the owner's failure to renew their lease.
In answer to the tenants' complaint, the owner contended in
substance that it should not have to issue a renewal lease to the
Einhorns who were subtenants of the prime tenant, Carol Tager.
Ms. Tager gave up the prime lease which expired on January 31,
1989. The subtenants have not paid any amount for use and
occupancy since February 1, 1989. The owner took the subtenants
to court in a holdover proceeding (L&T Index Number 54144/91).
That case was settled by stipulation before the Honorable Judge
Haber on March 4, 1991. In the stipulation the Einhorns agreed
that they were not rent stabilized tenants and that this
stipulation could be submitted to the Division of Housing and
Community Renewal (DHCR). Both parties to the stipulation were
represented by counsel. The owner submitted copies of the
stipulation of settlement, the sublease, the prime lease and a
letter from Ms. Tager giving up her rights to the prime lease.
The Administrator found that the Commissioner in Order Number
FJ 110180 RO
23,402 FTC dated August 8, 1991 had determined that the tenants
were rent stabilized tenants for the subject apartment and, based
thereon, the Administrator directed the owner to offer the
tenants a renewal lease upon payment of all rent arrears.
In this petition, the owner reiterates the arguments made before
The subtenants did not submit a response to the owner's petition.
The Commissioner is of the opinion that this petition should be
The record in the instant case reveals that the Einhorns
initially moved into the subject apartment as subtenants. The
subtenants remained in the subject apartment after the prime
tenant had given up her rights to the apartment. However, the
owner commenced a holdover proceeding wherein the subtenants
agreed inter alia that they had no rights as rent stabilized
tenants Order Number 23,402 FTC issued on August 8, 1991 was
inconsistent with the stipulation of settlement signed before
Judge Haber on March 4, 1991 insofar as is found the subtenants
to be rent stabilized tenants. The issue in Order Number 23,402
FTC was whether the owner was providing services. The issue of
services was properly before the Commissioner as the subject
apartment was subject to the rent stabilization law even through
no one raised the issue that the tenants themselves were not
stabilized. Accordingly, the Commissioner finds, based upon the
record, that the tenants are not rent stabilized based upon the
stipulation of settlement signed before Judge Haber, and the
fact that subtenants are not entitled to rent stabilized leases
in their own name.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
ORDERED, that this petition be, and the same hereby is, granted,
that the District Rent Administrator's order be, and the same
hereby is, revoked, and that the portion of Order Number 23,402
FTC wherein it was found that the subtenants were stabilized
tenants is hereby revoked.
JOSEPH A. D'AGOSTA
FJ 110180 RO
Acting Deputy Commissioner