ADM. REVIEW DOCKET NOS.: BB 410363 RO & BB 410364 RO

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

          APPEAL     OF                                   DOCKET      NOS.:
                                                 BB 410363 RO 
                                              :  BB 410364 RO
                                                 RENT       ADMINISTRATOR'S
                                                 DOCKET NO.: ZAH  430032  B
                SOUTHERN ASSOCIATES                                  

                              PETITIONER      : 


               On February 9, 1987 and February 20, 1987,  the  above-named
          owner filed petitions  for  administrative  review  of  an  order
          issued on February 4, 1987, by a  Rent  Administrator  concerning
          housing accommodations located at 203 East 38th Street, New York, 
          N.Y., wherein the Administrator found that certain  services  had
          not been maintained and ordered a rent reduction based thereon.

               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 on  August  15,  1986  by  the
          filing by the tenant of an application for  a  decrease  in  rent
          due to decreased building-wide services, alleging that there  was
          no light in the entrance hallway; peeling plaster and  paint,  no
          cleaning and cracked walls in the  hallways; broken steps on  the
          staircase; exposed electrical wires in the entrance hall;  broken
          door buzzer; no intercom; inadequate trash disposal and no  trash

               In its response, the  owner  denied  each  of  the  tenant's
          allegations, and alleged that the  tenant  improperly  filed  two
          complaints for the same items.

               On October 16, 1986 a physical  inspection  of  the  subject
          apartment  was  carried  out  by  the  Division  of  Housing  and
          Community Renewal (DHCR).  The inspector, in  his  report,  noted
          that the lights at the entrance of the building were burned out;
          that there were peeling  plaster  and  paint,  dirty  halls,  and
          cracked walls throughout the building's public areas; that  there
          were broken and loose stair steps throughout the staircase;  that
          the door buzzer and intercom were  inoperative;  and  that  there

          ADM. REVIEW DOCKET NOS.: BB 410363 RO & BB 410364 RO
          were no garbage cans for tenants' use.  

               On February 4, 1987 the Rent Administrator issued the  order
          here under review, finding that  a  diminution  of  services  had
          occurred and reducing the rent to the level in  effect  prior  to
          the last rent guideline  increases  which  commenced  before  the
          effective date of the rent reduction.  The Administrator included 
          five additional tenants as tenants affected by the order. 

               In  its  petitions  for  administrative  review,  the  owner
          resubmitted its answer in the proceeding below.  In the  petition
          under Docket No. BB 410363 RO, the  owner  included  as  affected
          parties   the   five   additional   tenants   included   in   the
          Administrator's order.  Both  petitions  have  been  consolidated
          herein for purposes of this determination.  

               The Commissioner is of  the  opinion  that  these  petitions
          should be denied.

               Pursuant to Section  2523.4(a)  of  the  Rent  Stabilization

               A tenant may apply to the DHCR for a reduction 
               of the legal regulated rent to the level in ef-
               fect prior to the most recent guidelines adjust-
               ment, and the DHCR shall so reduce the rent for
               the period for which it is found that the owner 
               has failed to maintain required services.

          Required services are defined in  Section  2520.6(r)  to  include
          repairs and maintenance.

               The Commissioner finds that the Administrator properly based 
          his determination on the entire record, including the results  of
          the on-site physical inspection conducted on October 16, 1986 and 
          that pursuant to Section 2523.4(a) of the Code, the Administrator 
          was mandated to reduce the rent upon determining that  the  owner
          had failed to maintain services.  The Commissioner finds that  no
          evidence to support disturbing the Administrator's  determination
          has been presented herein. 

               The Commissioner notes that by amended order, issued May  3,
          1990, the Administrator removed from inclusion in the  order  the
          five additional tenants, noting that they were tenants of another 
          building and had been improperly included in the order.

               The Commissioner notes  that  in  addition  to  the  instant
          complaint of building-wide service decreases, the tenant filed an 
          application for a decrease in rent due to decreased  services  in
          his apartment (AH 410135 S).  That individual  complaint  alleged
          the same building-wide service reductions, but added  allegations
          of service deficiencies within the apartment.  That complaint was 
          terminated based on the tenant's failure to provide access. 

               This order and opinion is issued without  prejudice  to  the
          owner's right to file an application  with  the  Division  for  a
          restoration of rent based upon the restoration  of  services,  if

          ADM. REVIEW DOCKET NOS.: BB 410363 RO & BB 410364 RO

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

               ORDERED, that these petitions be, and the same  hereby  are,
          denied, and that the Rent Administrator's order be, and the  same
          hereby is affirmed.


                                          ELLIOT SANDER
                                          Deputy Commissioner



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