In the Matter of the Application of Laurie Sagalyn
Loft Board Order #113
Laurie Sagalyn, a residential tenant of the third floor unit at 65 Greene Street, filed a rent adjustment application with the Loft Board on November 29, 1983.
On January 13, 1984 Samuel Landau filed an answer to Sagalyn's application.
ISSUE:
The issue raised by the applicant is that she has been overcharged in her rent by the owner: while owner claims that applicant has been properly charged pursuant to the Loft Board Interim Rent Guideline.
PROCEEDINGS BEFORE THE LOFT BOARD:
On February 16, 1984 an informal conference was held on this application and it was attended by Samuel Landau, Laurie Sagalyn and John Evans, counsel to Sagalyn.
At this conference, the following facts were established: the applicant, Sagalyn, entered into a two year-lease for her space at 65 Greene Street with the owner, Landau, on November 15, 1980. The lease was to end on November 14, 1982. A rider attached to this lease provided an option for the tenant to renew her lease for an additional year ending on November 14, 1983. Clause 27 of the rider provided for the tenant to pay: first, 1/5 of any increase in oil costs based on a three year average of 9700 gallons and a price of 94.4 cents per gallon, and second, 1/5 of any increase in real estate taxes over the 1980-1981 level, In addition, Clause 40 of the rider also provides for tenant to give landlord sixty [60] days prior written notice of exercise her option to renew the lease.
Sagalyn stated that she signed the option to renew the lease not knowing that she had an option, under Article 7-C, not to sign a lease renewal. She also stated that, although her notification to Landau to exercise her option to stay in the loft for another year was dated September 1, 1982 it really was not hand delivered to him until around early January 1983 and that she had back dated it to comply with the sixty 160] day requirement stated in the rider. She claimed that since such notice was not delivered until after the Loft Board rent guidelines were promulgated, it should have not validity and the renewal should be unenforceable.
Sagalyn explained that after receiving Landau's January 18, 1983 note of the terms of the renewal lease she realized that each party had a different interpretation of the provisions in the rider. In her application to the Board, Sagalyn requests that her new rent be computed on her $550 base rent plus 9% increase, pursuant to the rent guidelines, instead of Mr. Landau's computation which uses the $550 base, plus oil and taxes escalators, included in the third year renewal option, plus the 7% increase.
Landau stated that the rent being charged to Sagalyn is correct and in accordance with the Board's guidelines. He denied that Sagalyn delivered her September 1, 1982 renewal option not to him in January, 1983 and stated that he received such note toward the end of November or the first two weeks in December 1982. In addition, he stated that on November 15, 1982 Sagalyn began to pay her rent for $550.00 as an indication that she was planning to stay in the loft. In addition, he stated that Sagalyn paid him the $996.82 due as result of the escalator terms of the renewal lease shortly after the start of 1983 and has continued to pay her rent throughout all of 1983.
Since the parties did not reach agreement as to the facts in their dispute, the hearing officer determined that he would conduct a hearing on the matter. On April 12, 1984 a communication was sent to the parties informing them of a need for a hearing on this application. Mr. Landau contacted the hearing officer by phone shortly thereafter and informed him that he would be available as needed. Miss Sagalyn responded on July 9, from Milano, Italy, stating that she had been traveling in Europe since April: that she did not know when she would be returning from Europe, and instead of dragging this matter further she wished to pass on the hearing and agreed to pay the rent increase as demanded by the owner.
OPINION:
The Loft Board accepts the applicant's request to end her rent adjustment application pending before the Board.
ORDER:
The Loft Board grants the applicants request to withdraw with prejudice her rent dispute application docketed TA-0006.
Dated: August 29, 1984