GB 410297 RO
                                   STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO. GB 410297 RO

                                              :  DISTRICT RENT OFFICE
               207 East 14th Street Realty,      DOCKET NO. AB 410214-R
                                                 TENANT: Melissa Gibson       
                                   PETITIONER : 


          On February 4, 1992, the above-named petitioner-owner timely refiled 
          a Petition for Administrative Review against an order issued on 
          September 26, 1991, by the District Rent Administrator, Gertz Plaza, 
          Jamaica, New York, concerning the housing accommodations known as   
          207 East 14th Street, New York, New York, Apartment No. 3A, wherein 
          the District Rent 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. 

          Subsequent thereto, the petitioner owner filed  petition in the 
          Supreme Court pursuant to Article 78 of the Civil Practice Law and 
          Rules requesting that the "deemed denial" of the petitioner's 
          administrative appeal be annulled.  By stipulation dated July 30, 
          1992, the Article 78 proceeding was withdrawn on condition that the 
          DHCR render a determination of the petitioner's appeal within ninety 
          days of July 31, 1992.

          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 of a fair 
          market rent appeal application by the tenant.  The tenant took 
          occupancy pursuant to a sub-lease commencing October 1, 1985 and 
          expiring May 31, 1987 at a monthly rent of $795.00.

          In answer to the application, the owner stated that the prime tenant 
          was Lahien Ouzidone who took occupancy pursuant to a lease 
          commencing on May 1, 1985 and expiring on May 31, 1987 at a monthly 
          rental of $795.00.  The owner alleged that the prime tenant was 
          served with a notice of initial legal regulated rent (DC-2 notice), 
          but failed to submit it.

          GB 410297 RO

          In the order under appeal herein, the District Rent Administrator 
          adjusted the initial legal regulated rent by establishing a fair 
          market rent of $231.00 per month effective May 1, 1985, the 
          commencement date of the initial rent stabilized lease; established 
          the lawful stabilized rent for the complainant tenant at $231.00 per 
          month effective October 1, 1985; and directed the owner to refund to 
          the tenant all excess rent.  The Administrator noted that the 
          complainant tenant had vacated the subject apartment prior to March 
          15, 1987.

          In this petition, the owner contends that the District Rent 
          Administrator's Order is incorrect and should be modified because 
          the Administrator called the subtenant an assignee and a subtenant 
          cannot file a fair market rent appeal.  The owner submitted a copy 
          of a DC-2 notice addressed to the prime tenant and an affidavit from 
          Ms. Ouzidone stating that she received the DC-2 notice.  The owner 
          also submitted some bills for improvements and fuel data for 1982.  
          The owner that stated he was unable to submit these bills previously 
          because of an illness.  The owner submits a bill indicating he was 
          in the hospital from November 7, 1991 through November 11, 1991.

          The Commissioner is of the opinion that this petition should be 
          denied.  The owner is correct that the complainant tenant was a 
          subtenant.  However, there is nothing in the Rent Stabilization Law 
          and Code which prohibits a subtenant from filing a fair market rent 
          appeal and challenging the prime tenant's rent.  The record in this 
          case indicates that the owner did not submit the DC-2 form and 
          affidavit from the prime tenant, Ms. Ouzidone, to the Administrator 
          and cannot submit such documentation for the first time on the PAR 

          In addition, the Commissioner cannot consider bills for improvements 
          allegedly performed that were submitted for the first time on the 
          PAR level.  The owner offers no reason why these bills were not 
          submitted to the Administrator, nor is it an adequate excuse that 
          one member of the ownership was in the hospital for five days in 
          1991.  The fuel data submitted by the owner does not indicate that 
          the owner was entitled to any increase in rent. 

          The owner is directed to refund the excess rent collected to the 
          tenant.  The owner is cautioned to adjust subsequent rents to an 
          amount no greater than that determined by the Rent Administrator's 
          order plus any lawful increases, and to register any adjusted rents 
          with this order and opinion being given as the explanation for the 

          A copy of this order and opinion is being sent to the current 
          occupant of the subject apartment.

          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          it is

          ORDERED, that this petition be, and the same hereby is, denied and 
          the District Rent Administrator's order be and the same hereby is, 

          GB 410297 RO


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner



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