BI 630025 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.: 
                                                  BI 630025 RO
                                                  BI 630026 RO

               FORTY MARCY LTD.                   RENT
                                                  ADMINISTRATOR'S DOCKET 
                                                  NO.: AH 630021 B
                                  PETITIONER            
          ----------------------------------x


            ORDER AND OPINION GRANTING PETITIONS FOR ADMINISTRATIVE REVIEW   
                     IN PART AND MODIFYING RENT ADMINISTRATOR'S ORDER

               The above referenced administrative appeals have been 
          consolidated by the Commissioner because they are duplicates.

               The above named petitioner-owner filed timely Petitions for 
          Administrative Review against an order of the Rent Administrator 
          issued August 12, 1987. The order concerned various housing 
          accommodations located at 38 Marcy Place, Bronx, N.Y.  The 
          Administrator ordered a building-wide rent reduction for failure to 
          maintain required services.  

               The Commissioner has reviewed the record and carefully 
          considered that portion relevant to the issues raised by these 
          appeal.

               This proceeding was commenced on August 4, 1986 when one of 
          the 60 tenants filed of a Statement of Complaint of Decrease in 
          Building-Wide Services wherein the following services deficiencies 
          were complained of: removal of intercom with no replacement, no 
          front door lock, no superintendent on premises, unclean public 
          areas and defective mailboxes.

               The owner was served with a copy of the complaint and afforded 
          an opportunity to respond. The owner filed a response on September 
          23, 1986 and stated that there is a superintendent who maintains 
          the public areas, that there is a steel front door gate for 
          security and that there has never been an intercom system in the 
          building.  The owner did not address the issue of the mailboxes.
           
               The Administrator ordered a physical inspection of the subject 
          building.  The inspection was conducted on October 24, 1986 and 












          BI 630025 RO

          revealed that the intercom system was removed from the outside of 
          the building, that the front door lock was not working and that 
          several defective mailboxes were observed.  The inspector also 
          reported that the building employs a visiting superintendent and 
          that the hallways were clean at the time of the inspection.

               The Administrator issued the order here under review on August 
          27, 1987 and ordered a rent reduction of $13.00 per month for rent 
          controlled tenants and an amount equal to the most recent guideline 
          adjustment for rent stabilized tenants based on the report of the 
          inspector.

               On appeal the owner states that the Administrator issued an 
          order on June 24, 1987 bearing Docket No AA 600085 B wherein a 
          building-wide reduction was ordered for the tenants of 40 Marcy 
          Place.  The order reduced the rent of rent controlled tenants by 
          $9.00 per month. The rent of rent stabilized tenants was ordered 
          reduced by an amount equal to the most recent guideline adjustment 
          based on an inspector's report detailing a defective entrance door 
          and lack of intercom.  The owner states that 38 Marcy Place and 40 
          Marcy Place are the same building and, therefore, two rent 
          reductions have been ordered based on the same conditions 
          complained of.  The owner also states that new mailboxes are on 
          order.  The Commissioner notes that the order bearing Docket No. AA 
          600085 B was affirmed in an order issued by the Commissioner on 
          January 25, 1991 (see Docket No. BG 630222 RO).

               One tenant filed a response on December 18, 1987 but did not 
          address the issue of the two orders, except to state that both had 
          been issued and that the conditions described therein had not been 
          corrected.

               After careful review of the evidence in the record, the 
          Commissioner is of the opinion that the petition should be granted 
          in part and the order bearing Docket No. AH 630021 B should be 
          modified.

               It is apparent from the records in both this proceeding and 
          the proceeding bearing Docket No. AA 600085 B that the owner is 
          correct in that two rent reductions have been granted for the same 
          building based on findings of a defective intercom system and 
          defective front door lock.  The Commissioner notes, however, that 
          the instant order ordered a rent reduction for a rent stabilized 
          tenant who was not granted rent reduction by the order bearing 
          Docket No. AA 600085 B because he did not join in that proceeding.  
          The Administrator was correct to do this. 

               The Commissioner notes, however, that no rent controlled 
          tenant joined in the filing of this complaint.  The owner was never 
          put on notice that a rent reduction for rent controlled tenants was 
          a possible consequence of the complaint.  The Administrator's 
          ordering of a rent reduction for rent controlled tenants 






          BI 630025 RO

          constituted a due process denial.  Therefore, it was error for the 
          Administrator to order a $13.00 per month rent reduction.  The 
          $13.00 per month rent reduction ordered for rent controlled tenants 
          it revoked.  If the current owner has already complied with the 
          Administrator's order and arrears are due and owing by reason of 
          the Commissioner's determination herein, the tenants may pay off 
          said arrears in twenty four equal monthly installments. 

               The Commissioner notes that the owner has applied for rent 
          restoration and that said application was granted in an order 
          issued on March 6, 1992 (see Docket No. FE 630187 OR).

               THEREFORE, pursuant to the Rent Stabilization Law and Code and 
          Rent and Eviction Regulations for New York City it is

               ORDERED, that this petition be, and the same hereby is, 
          granted in part and that the Rent Administrator's order be, and the 
          same hereby is, modified in accordance with this order and opinion.

          ISSUED:



                                                                             
                                             JOSEPH A. D'AGOSTA
                                             Acting Deputy Commissioner






    

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