Streg, Inc. v. Gabel

39 Misc. 2d 93, 240 N.Y.S.2d 303, 1962 N.Y. Misc. LEXIS 2239
CourtNew York Supreme Court
DecidedNovember 27, 1962
StatusPublished
Cited by4 cases

This text of 39 Misc. 2d 93 (Streg, Inc. v. Gabel) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Streg, Inc. v. Gabel, 39 Misc. 2d 93, 240 N.Y.S.2d 303, 1962 N.Y. Misc. LEXIS 2239 (N.Y. Super. Ct. 1962).

Opinion

Harold Tessler, J.

This article 78 proceeding seeks to review and thereupon annul the determination of the City Rent and Rehabilitation Administrator who by order dated July 5, 1962, revoked certain rent increases which had been granted by the Local Rent Administrator of the State Rent Administration on June 15, 1961.

On July 27, 1960, petitioner landlord applied, pursuant to subdivision 5 of section 33 of the State Rent and Eviction Regulations, for increases in the maximum rent of 120 apartments in the subject building on the ground that such increases were necessary to provide the allowable 6% net annual return based on the current assessed valuation of $785,000. The Local Rent Administrator found that the current assessed valuation of $785,000, equalized at the 1954 equalization rate of 85% was [95]*95$923,529.41 and that 6% of that sum was $55,411.76. Since the landlord’s net income in the test year ending June 30, 1960, amounted to $49,099.22, a rent adjustment of $6,312.54 was required to provide the allowable annual net return of 6%. Thereafter, a physical inspection of the premises was conducted, the report of which noted that the building-wide services were being adequately maintained, but that certain specified repairs were required in 15 apartments. It appears from the record that the landlord completed these required repairs, filed an affidavit of compliance and on June 15, 1961, as already noted (almost one year after the filing of the application) the Local Bent Administrator issued orders increasing each of the maximum rents of 87 apartments, effective as of that date.

Four protests were filed by the tenants from the aforementioned orders. Of these four protests, three were filed specifically by the tenants of apartments 2W, 3M and 5C; the fourth protest was filed on behalf of various other tenants ” by the attorney for the tenants’ group. None of these tenants is specifically identified anywhere in the record by either name or apartment number. It is to be noted that section 93 of the regulations requires that the name and post-office address of the tenant or representative filing the protest be given. The protesting tenants claim that essential services were not being maintained; that the afore-mentioned rent increases granted were unfair because other apartments were not increased; and that the landlord’s claimed payroll expense was not accurate.

On February 26, 1962, the State Bent Administrator issued an order remanding the proceeding to the local rent office, which order was revoked by him three days later, on March 1, 1962, upon a finding that said order had been erroneously issued on the assumption that the current equalized assessed valuation was used at the audit as the landlord’s basis of eligibility for the rent increase.

At this point it is to be noted that on May 1, 1962, the regulation and control of residential rents and evictions within the City of New York was transferred from the Temporary State Bent Commission to the City Bent and Behabilitation Administration, pursuant to chapter 21 of the Laws of 1962.

Section 33.5 of the City Bent, Eviction and Behabilitation Begulations, effective May 1, 1962, provides that the landlord’s basis of eligibility for an increase shall be the assessed valuation in effect at the time the application for such increase was filed, without application of the equalization rates.

By order dated July 5, 1962 (almost two years after the filing of the original application) the City Bent and Behabilitation [96]*96Administrator found that all of the tenants’ protests were without substance and denied the same. Nevertheless, the order further provided that all 87 orders of increase issued by the Local Bent Administrator (State), dated June 15, 1961, should be cancelled as of July 5,1962. The respondent applied de novo the new section 33.5 of the regulations, finding that the landlord earned an amount exceeding 6% during the test year and, consequently, no rent adjustment was required. The respondent stated that ‘ ‘ Section 118 of the City Bent, Eviction and Behabilitation Begulations requires that all protests pending on May 1, 1962, be determined in conformity with the provisions of the City Begulations. Therefore, since the instant protests were pending on May 1, 1962, they are being determined pursuant to the provisions of Section 33.5 of the City Bent, Eviction and Behabilitation Begulations. ’ ’

Petitioner contends, among other things, that the Administrator was without jurisdiction when she revoked the Local Bent Administrator’s orders after denying the tenants’ protests. Bespondent, on the other hand, maintains that she acted in conformity with the regulations then effective and was authorized, in the present posture of the protests, to consider the latter de novo and to apply the law and regulations then in effect.

In the court’s opinion the respondent’s application of section 118 of the regulations constitutes such a reaching as to result in an act entirely beyond the authority intended to be given the respondent by the above-mentioned section. There is nothing in section 118 that permits its application in such a manner as to warrant the de novo consideration of each and every prior act of the State Bent Administrator, whether or not the latter’s prior determinations are at issue in the protests then pending. It is my view that when the respondent denied the tenants’ protests, by order of July 5,1962 — and of necessity this denial had to occur before the act ” of revocation— that was the end of the matter, leaving nothing else for the respondent to take any additional action upon. The sole issue for determination before the respondent from the very beginning of the protest proceeding was the correctness or incorrectness of the adjustment (increase) orders issued June 15, 1961; in effect it was the responsibility of the respondent to determine whether those orders when issued were consistent and in conformity with the regulations and the law as it then existed. By its denial of the tenants’ protests the respondent determined that the above-mentioned orders were correct and in conformity with the regulations.

Section 11 of chapter 21 of the Laws of 1962 (State Enabling Act) and section Y41-14.0 of the City Bent and Behabilitation [97]*97Law (Administrative Code of City of New York, § Y41-14.0) provide that pending matters “ shall be transferred to, conducted by, and completed or determined by the city housing rent agency. In discharging such responsibilities the city housing rent agency shall act in conformity with the provisions of the state emergency housing rent control law, and the rules and regulations promulgated thereunder, governing such matters, applications or proceedings, unless at the time such action is taken, such state law, and the rules and regulations promulgated thereunder, have been amended or superseded by local laws, ordinances, rules or regulations adopted pursuant to subdivision five of this section, and in such event, in conformity therewith to the extent such local laws, ordinances, rules or regulations are made expressly applicable to such matters, applications or proceedings.”

The City Rent and Rehabilitation Law also provides, in pertinent part, as follows:

“ § Y41-5.0 General powers and duties of the city rent and rehabilitation administration.— a.

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Cite This Page — Counsel Stack

Bluebook (online)
39 Misc. 2d 93, 240 N.Y.S.2d 303, 1962 N.Y. Misc. LEXIS 2239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/streg-inc-v-gabel-nysupct-1962.