BG 420377-RO
                                    STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                               DOCKET NO.:   
                                                  BG 420377-RO             
                 KEPASI REALTY CORP.,
                                                  RENT ADMINISTRATOR'S
                                                  DOCKET NO.:    
                                  PETITIONER      BC 420019-RP 


          On June 17, 1987 the above-named petitioner owner filed a petition 
          for administrative review against an order issued on June 10, 1987 
          by a Rent Administrator concerning the housing accommodation known 
          as Apt. 4-F, 313 West 100th Street, New York, New York, wherein the 
          Administrator ordered that the maximum collectible rent for the 
          subject apartment be reduced by $41.00 per month based on a finding 
          that the landlord had failed to provide furniture and furnishings.

          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.

          The tenant commenced this proceeding by filing an application for 
          a decrease in rent on February 20, 1986 in which he stated that the 
          apartment, which is registered as furnished, is unfurnished.

          In answer to the complaint, the landlord asserted that the apart- 
          ment is registered as "not furnished" but advised that if this had 
          been changed, the landlord was willing to supply furniture.

          The tenant responded on August 26, 1986, explaining that when he 
          first rented the apartment twenty years ago, it was furnished but 
          as the furnishings wore out, they were replaced by the tenant with 
          the knowledge and consent of the then owner.  The tenant added that 
          since 1972, all the furniture is his.

          After a physical inspection of the apartment on August 26, 1986, 
          confirmed that all the furniture belongs to the tenant, the 
          Administrator issued an order on January 30, 1987 denying the 
          tenant's rent reduction application.

          BG 420377-RO

          The Administrator reopened the proceeding on April 1, 1987, and on 
          June 10, 1987 the order appealed herein was issued reducing the 
          rent by $41.00 per month based on the landlord's failure to provide 

          In the petition for administrative review, the owner asserts that 
          the Administrator incorrectly determined that furniture is included 
          in the rent since the 1943 registration card does not list furni- 
          ture as an included service, and the tenant's claim that the 
          "Notice of Maximum Rent" states that the maximum rent includes 
          furniture is not supported by any documentary evidence.

          After careful consideration of the evidence of record, the Commis- 
          sioner is of the opinion that the petition should be granted.

          Although the original rent registration card for the subject 
          premises, dated November 24, 1943, does indicate that furniture was 
          not among the services and equipment provided to the subject 
          apartment, the Division's records reveal that on April 24, 1946, 
          the then owner was granted an increase in the maximum rent based on 
          a change in the apartment from unfurnished to fully furnished.

          The Administrator's determination that the furniture is a required 
          service was therefore correct.

          The Commissioner finds, however, that the rent reduction ordered by 
          the Administrator is not warranted and should be revoked.

          Section 2202.16 of the Rent and Eviction Regulations authorizes a 
          rent reduction based on a finding that an owner has failed to 
          maintain services required to be provided.  

          Such a finding is not warranted in this case where the tenant has 
          acted to replace the furniture himself without affording the owner 
          an opportunity to do so and where the owner has repeatedly 
          expressed a willingness to supply furniture once it is confirmed 
          that this is a required service.

          An owner should not be penalized with a rent reduction for not 
          providing a service when a demand for the service was never made 
          and the tenant has made it impossible for the owner to restore the 

          If the tenant wishes to have furniture provided by the owner, a 
          demand for such should be made, indicating specific items to be 
          replaced, and if the owner refuses, a rent reduction may be 
          warranted upon application by the tenant.

          BG 420377-RO

          The owner may apply to the Division for permission to decrease the 
          furniture required to be provided, pursuant to Section 2202.21 of 
          the Rent and Eviction Regulations.

          THEREFORE, in accordance with the Rent and Eviction Regulations for 
          New York City,  it is,

          ORDERED, that this petition be, and the same hereby is, granted and 
          the Rent Administrator's order be, and the same hereby is, revoked. 


                                                JOSEPH A. D'AGOSTA
                                                Acting Deputy Commissioner


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