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. GD210128RO
: DRO DOCKET NO.ZFC210017RK
PARDALE BLDG CORP.
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On April 17, 1992, the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on March
25, 1992, by the Rent Administrator, 92-31 Union Hall Street,
Jamaica, New York, concerning the housing accommodations known as
1745 East 12th Street, garage space 7 (apt. 6B), Brooklyn, New York,
wherein the Rent Administrator determined that the owner had
overcharged the tenant for the garage space.
The Administrative Appeal is being determined pursuant to the
provisions of Section 2526.1 of the Rent Stabilization Code.
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 issue raised by the administrative appeal.
This proceeding was originally commenced by the filing in
February, 1985, of a rent overcharge complaint by the tenant
concerning the tenant's garage space. The tenant stated in
substance that she was given only one garage lease for a one month
period and that the owner refused to give her garage renewal leases
for one or two year periods similar to the apartment leases.
In response to the tenant's complaint, the owner stated in
substance that it raises the garage rents only when forced to do so
by rising costs. On December 30, 1986, the Rent Administrator
issued an order terminating the proceeding on the mistaken belief
that the matter had been resolved under docket K3105589R. However
that docket referred only to the tenant's overcharge complaint
concerning her apartment and the proceeding herein was reopened on
March 18, 1991, to consider the garage overcharge complaint. The
owner was again afforded an opportunity to respond to the tenant's
complaint of garage rent overcharge and informed in a final notice
of the possible imposition of treble damages if the preponderance of
the evidence indicated that the overcharge was willful.
In Order Number ZFC210017RK, the Rent Administrator determined
that from March 1, 1985 through March 31, 1992, the owner had
collected a garage rent overcharge of $3,351.16 including treble
damages. In such order, it was noted that the only an initial one
month lease had been executed and that thereafter the tenant
continued to pay garage rent on a monthly basis. Further in such
order the owner was given credit for garage rent increases pursuant
to deemed two year renewal leases.
In this petition, the owner contends in substance that the
policy of a month to month garage lease has been in effect since the
building was constructed and that the imposition of treble damages
was not warranted.
In answer to the owner's petition, the tenant stated in
substance that the Rent Administrator's order was warranted and that
she has now vacated the subject apartment.
The Commissioner is of the opinion that this petition should be
In the instant case, the evidence of record discloses that the
owner has provided the garage space and that such space is an
ancillary service subject to the Rent Stabilization Law and Code.
Pursuant to Section 2520.6(r) (4) (xi) of the Rent Stabilization
Code, any rent increase for such included ancillary service other
than the charge provided in the initial agreement with a tenant to
lease, rent or pay for such service, shall conform to the applicable
rent guidelines rate. In this case, the owner has refused to tender
to the tenant renewal leases for the garage space conforming to the
renewal terms and guideline increases allowed under the Rent
Stabilization Law and Code. Further the owner has not submitted
any evidence to show that its overcharge was not willful and
accordingly the imposition of treble damages was warranted. It is
further noted that based on the owner's refusal to offer garage
renewal leases, the Rent Administrator's order deeming two year
renewal leases was not correct since deeming leases is remedial in
nature and proper only where a tenant unreasonably refuses to renew
a lease. However in the absence of a petition for administrative
review filed by the tenant, no changes will be made in the Rent
Administrator's determination of deemed leases.
The owner is directed to reflect the findings and
determinations made in this order on all future registration
statements, including those for the current year if not already
filed, citing this order as the basis for the change. Registration
statements already on file, however, should not be amended to
reflect the findings and determinations made in this order. The
owner is further directed to adjust subsequent rents to an amount no
greater than that determined by this order plus any lawful
This order may, upon the expiration of the period in which the
owner may institute a proceeding pursuant to Article 78 of the Civil
Practice Law and Rules, be filed and enforced in the same
manner as a judgment. A copy of this order is being sent to the
current occupant of the subject apartment.
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 hereby is, denied, and, that the order of the Rent
Administrator be, and the same hereby is, affirmed.
JOSEPH A. D'AGOSTA