BD 410363 RO
                                  STATE OF NEW YORK
                      DIVISION OF HOUSING AND COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          -----------------------------------X
          IN THE MATTER OF THE ADMINISTRATIVE  ADMINISTRATIVE REVIEW
          APPEALS OF                           DOCKET NOS. BD 410363 RO
                                                       and BG 410218 RT
               Metropolitan Life Insurance
               Company and
               John R. Caldwell,               DISTRICT RENT 
                                               ADMINISTRATOR'S
                                               DOCKET NO. 038785
           
                                  PETITIONERS               
          -----------------------------------X

                   ORDER AND OPINION TERMINATING PROCEEDING UNDER
                             DOCKET NO. BD 410363 RO AND
               DENYING PETITION FOR ADMINISTRATIVE REVIEW UNDER DOCKET
                                  NO. BG 410218 RT

          On July 23, 1987, the above-named tenant  filed  a  petition  for
          administrative review of an order issued on June 23,  1987  by  a
          District Rent Administrator concerning the housing accommodations 
          known as Apartment 2D, 274 First Avenue, New York, New York.

          The Commissioner notes that the petition filed on April 7,  1987,
          under Docket No. BD 410363 RO, for review of an order  issued  on
          March 4, 1987, has been  rendered  moot  by  the  issuance  of  a
          corrected District Rent Administrator's order issued on June  23,
          1987.  

          The  appealed  order   of   the   District   Rent   Administrator
          determined, inter alia,  that  garage  parking  has  always  been
          provided by an independent contractor  not  affiliated  with  the
          owner, and that the  garage  parking  was  not  subject  to  rent
          stabilization.

          The Commissioner has reviewed all the evidence in the record  and
          has carefully considered that portion of the record  relevant  to
          the issues raised by the petition for review.

          The tenant commenced the original proceeding by filing  with  the
          Division a tenant's objection to the services registration  dated
          September 23, 1984.  In his objection  the  tenant,  among  other
          things, asserted, in substance, that the availability to  tenants
          only of  six  underground  garages  had  been  omitted  from  the
          Building Services Registration.

          In answer to the  tenant's  objection,  the  owner  asserted,  in
          substance and pertinent part, that garages were  not  a  required
          service existing on the base date but were provided to  users  by
          an unaffiliated independent contractor for a separate charge.

          On March 4, 1987 the District Rent Administrator issued an  order
          in which it was determined, among  other  things,  that  although






          BD 410363 RO
          certain facilities are provided by outside contractors or vendors 
          it  does  not  lessen  the  owner's  responsibility   for   their
          maintenance, and that they are services to which  the  tenant  is
          entitled.

          On  May  4,  1987  the  proceeding  was  reopened   for   further
          processing based on an irregularity in a vital matter.

          On June  17,  1987  the  District  Rent  Administrator  issued  a
          corrected order and determination  which  was  amended  by  order
          issued June 23, 1987.  In the  above  orders,  the  Administrator
          found among other things that the garage parking had always  been
          provided by an independent contractor and was not subject to rent 
          stabilization and need not be registered as a  service  with  the
          agency.

          In his petition for administrative review the tenant asserts,  in
          substance and pertinent part, that the original finding regarding 
          garages  in  the  March  4,  1987  order  should  not  have  been
          disturbed and that availability of the six  on-site  garages  and
          their maintenance should be designated as a required service  and
          these garage spaces contained therein should be made available to 
          tenants within thirty days of the tenants' written request.

          In answer to  the  tenant's  petition,  the  owner  contends,  in
          substance and pertinent part, that  it  is  not  responsible  for
          maintaining the garage service and  the  subject  tenant  is  not
          entitled to garage space.  The owner  further  asserts  that  the
          garage parking is not subject to  rent  stabilization  and  makes
          reference to several previously issued Administrator's orders  in
          which it was determined  that  garage  parking  for  the  subject
          premises is not subject  to  Rent  Stabilization  and  is  not  a
          required service.

          The Commissioner is of the  opinion  that  the  proceeding  under
          Docket No. BD  410363  RO  should  be  terminated  and  that  the
          tenant's petition, under  Docket  No.  BG  41028  RT,  should  be
          denied.

          Section 2527.8 of the Rent Stabilization Code provides  that  the
          agency may on its own  initiative  modify  or  revoke  any  order
          issued by it where the DHCR finds that such order was the  result
          of, among other things, irregularity in vital matters.

          The instant proceeding involves the reopening of an order (issued 
          March 4, 1987 under Docket No. 038785) due to an irregularity  in
          a vital matter, based on the fact that the  Administrator  failed
          to consider a service issue made a part of the tenant's  original
          complaint, for which a corrected order was  subsequently  issued.
          The record reveals that the parties had an  adequate  opportunity
          to respond to the reopening and therefore the principles  of  due
          process   were   satisfied.    Further,   the    District    Rent
          Administrator, upon the reopening of  this  proceeding,  had  the
          power to modify the order herein appealed.

          The Commissioner finds that  the  amended  June  23,  1987  order
          correctly determined that the garages need not be registered.  
          Section 2528.2 of the Rent Stabilization Code, effective  May  1,
          1987 requires the initial registration to include  "all  services






          BD 410363 RO
          provided for in the last lease or rental agreement,  provided  or
          required  to  be  provided  on  the  applicable  base  date,   or
          thereafter."

          Section 2520.6(r)(4)(xi) of Code, provides: 
               "(xi) A service defined in paragraph (3) of this subdivision 
               (r) for which there is or was a separate charge,  shall  not
               be subject to the provisions of this Code  where  no  common
               ownership between the operator of such service and the owner 
               exists or existed on the applicable base  date,  or  at  any
               time subsequent thereto, and such service is or was provided 
               on the applicable base date and at all times  thereafter  by
               an  independent  contractor  pursuant  to  a   contract   or
               agreement with the owner."
               (Emphasis Added)

          Paragraph (3) of subdivision (r),  defines  "Ancillary  Services"
          as:

               "That space and those required services not contained within 
               the individual housing accommodation  which  the  owner  was
               providing on the applicable base dates set forth below;  and
               any additional space and services provided or required to be 
               provided thereafter by applicable law.  These  may  include,
               but  are  not  limited  to,   garage   facilities,   laundry
               facilities, recreational facilities, and security."

          The applicable base date for building-wide services, pursuant  to
          Section 2520.6(r)()4)(iv), of the Rent  Stabilization  Code  with
          respect to all buildings within the  subject  premises  known  as
          Stuyvesant  Town,  is  May  29,  1974.   (All  buildings   within
          Stuyvesant Town became subject to the Rent Stabilization Law  and
          Section 423 of the Real Property Tax Law as of July 1, 1974).

          The Administrator found that parking is not a  required  service.
          Since the space now allocated for use as a garage by the  tenants
          of the subject premises has been  operated  as  a  garage  by  an
          independent contractor since  the  effective  stabilization  base
          date (July 1, 1974), the owner is not  obligated  to  provide  or
          maintain the garage spaces for the rent stabilized tenants. 

          Accordingly,  the  Commissioner  is  of  the  opinion  that   the
          petition for administrative review, under Docket No. 
          BG 410218 RT should be denied.

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

          ORDERED, that the proceeding under Docket No. BD  410363  RO  be,
          and the same hereby is, terminated in accordance with this  order
          and opinion; and it is

          FURTHER ORDERED, that the petition under Docket No. BG 410218  RT
          be,  and   the   same   hereby   is,   denied,   and   that   the
          Administrator's order be, and the same hereby is, affirmed. 

          ISSUED:
           
                                             JOSEPH A. D'AGOSTA






          BD 410363 RO
                                             Acting Deputy Commissioner



    

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