ADM. REVIEW DOCKET NOS. BJ 130151 RO AND EG 130189 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. BJ  130151  RO
                                                          and EG 130189 RO
                                              :         DISTRICT        RENT
                                                 ADMINISTRATOR'S DOCKET 
                                                 NOS. AJ - 130037 - B and 
                                                      DH      130101      OR
           PROVIDENT                  OPERATING                  CORPORATION
                       
                                 PETITIONER  :  
          ------------------------------------X 


               ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE
               REVIEW IN DOCKET NO. BJ 130151 RO AND DENYING PETITION
                FOR ADMINISTRATIVE REVIEW IN DOCKET NO. EG 130189 RO

               On  October  28,  1987,  the  above-named  landlord  filed  a
          petition for administrative review of an order issued  October  6,
          1987  by  the  Rent  Administrator,  concerning  various   housing
          accommodations in the premises known as 98-41 65th Avenue, Queens, 
          New York, wherein  the  Rent  Administrator  determined  that  the
          landlord had failed to maintain certain services  and  accordingly
          reduced the rent of the subject accommodations.  On July 20, 1990, 
          the above-named  landlord  filed  a  petition  for  administrative
          review of an order issued by the Administrator on June  15,  1990,
          wherein  the  Administrator  denied  the   landlord's   subsequent
          application for restoration of the rents. 

               Since the petitions involve common questions of law and fact, 
          the  Commissioner  deems  it  appropriate   to   consolidate   the
          proceedings for disposition herein. 

               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 appeals.

               The original proceeding was initiated by several tenants,  by
          the filing of a building-wide services complaint.  

               The complaint alleged that:

                    1) the elevator jumps when inner door closes,
                       controller does not work, and inspection 
                       certificate missing from the elevator;    



                    2) the vestibule and all the floors need
                       painting and plastering; 






          ADM. REVIEW DOCKET NOS. BJ 130151 RO AND EG 130189 RO
                    3) there is insufficient outside lighting;
                    4) the basement doors have broken locks;
                    5) the roof over the garage is dangerous
                       to walk on because there are cracks and   
                       broken cement; and 
                    6) the intercom system doesn't work properly.

               In the landlord's answer it was alleged that the elevator was 
          working properly; that the  public  areas  of  the  building  were
          cleaned daily, and peeling plaster had  been  repaired;  that  new
          exterior lighting fixtures were installed  a  week  earlier;  that
          basement door locks were  maintained  and  were  in  good  working
          order; that the garage  roof  were  not  a  part  of  the  subject
          premises, and the garage was not an essential service, and that if 
          a tenant was having trouble  hearing  the  intercom,  the  owner's
          service company would look into the matter.   

               On January 15,  1987  an  inspection  was  conducted  at  the
          subject building.  Such inspection revealed the following  service
          defects:

               1) Plaster and paint were peeling from the sixth floor
                  hall ceiling;    
               2) basement doors did not close properly, making locks
                  ineffective;
               3) garage ceiling and walls were water stained; and 
               4) the front sidewalk was uneven and broken in spots.   

               On  October  6,  1987,  the  Administrator  issued  an  order
          determining that services decreases had occurred  in  the  subject
          premises and reducing the rent by $13.00 per month, per  apartment
          for the complaining rent-controlled tenants.  

               The landlord's petition (Docket No.  BJ  130151  RO)  asserts
          that the $3.00 of the decrease which was based on the condition of 
          the garage should be rescinded since the garage is  not  connected
          to the subject building; that it is not managed by  the  landlord;
          that garage facilities  are  not  a  required  service;  that  the
          garage's condition does not affect the tenants' occupancy of their 
          apartments, and that the tenants'  complaint  does  not  list  the
          interior condition of the garage as a service defect.

               The Commissioner  is  of  the  opinion  that  the  landlord's
          petition (Docket No. BJ 130151 RO) should be granted.

               The  Commissioner  notes  that  the  defects  found  by   the
          Administrator concerning the  interior  of  the  garage  were  not
          listed in  the  tenants'  service  complaint.   The  tenants  only
          complained about alleged difficulty in walking on the roof of  the
          garage due to cracks and  broken  cement,  but  the  Administrator
          determined that the  garage  ceiling  and  walls  were  defective,
          neither of which were listed in the tenants' complaint.


               Since the tenants' complaint did not allege  defects  in  the
          ceiling and wall of the garage, the  landlord  had  no  notice  of
          those defects, and was never  given  an  opportunity  to  respond.
          Accordingly, the Commissioner finds that the landlord's  right  to
          due process was denied.  Therefore, the $3.00 per  month  decrease






          ADM. REVIEW DOCKET NOS. BJ 130151 RO AND EG 130189 RO
          in the tenants' rent due to the ceiling and  wall  of  the  garage
          should be revoked. 

               The owner filed an application to restore rent on August  21,
          1989, under Docket No. DH 130101 OR, on the grounds that the owner 
          had restored services for which the rent was reduced.

               On February 23, 1990  an  inspection  was  conducted  at  the
          subject premises.  Such inspection revealed that the defects found 
          by the Administrator were not corrected.

               In the order reviewed herein, the Rent  Administrator  denied
          the landlord's application for a restoration of rent.

               The landlord's petition (Docket No.  EG  130189  RO)  alleges
          that:

                    1) the tenants' complaint was about the 
                       basement doors giving access to the 
                       building, but the basement doors are 
                       for compactor rooms, boiler rooms, 
                       meter rooms and other rooms which are     
                       not for the use of the tenants, and 
                       access to these rooms is not a required   
                       service; 
                    2) the plastering and painting had been 
                       completed prior to the filing of the      
                       application, but there was a recurrence
                       of leak damage just prior to the rent 
                       agency's inspection of the subject   
                       premises, which has since been repaired;       
                       and, 
                    3) in the tenants' original complaint there
                       was no mention of the ceiling and walls 
                       inside the garage, yet that was a service
                       defect found by the Administrator in the  
                       original proceeding.

               The Commissioner  is  of  the  opinion  that  the  landlord's
          petition (Docket No. EG 130189 RO) should be denied.

               As already noted,  the  Administrator's  order  reducing  the
          tenants' rent by $3.00 per month due to defects inside the  garage
          has been found to be unwarranted.  Accordingly,  that  portion  of
          the landlord's petition pertaining to the garage has been rendered 
          moot.





               The landlord's assertion that the basement doors are not  for
          the use of the tenants and that they are not a required service is 
          not a proper issue to raise in a  proceeding  for  restoration  of
          rent.  It is an  issue  only  relevant  as  to  whether  the  rent
          reduction order was proper.  Also, the issue of the basement locks 
          which the petitioner raises for the first time upon administrative 
          review could have reasonably been raised in the proceeding  before
          the Rent Administrator.  As this issue was not raised  before  the






          ADM. REVIEW DOCKET NOS. BJ 130151 RO AND EG 130189 RO
          Rent Administrator, it is outside the scope of the  Commissioner's
          review and will not be considered in this proceeding.  

               As to the  landlord's  allegation  that  the  plastering  and
          painting were completed prior to the rent agency's inspection, but 
          leak damage caused a reappearance of this defect, the Commissioner 
          finds that the Rent Administrator properly relied upon the  report
          of the agency inspector, but  notes  that  this  order  is  issued
          without  prejudice  to  the  landlord's  right  to  file   another
          application for restoration of rents when all services  have  been
          restored.

               Moreover,  the  Commissioner  notes   that   the   landlord's
          assertion was refuted by the  tenants'  answers  before  the  Rent
          Administrator to the effect that the plastering and  painting  had
          not been done and that the plaster was bubbling.

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

               ORDERED, that the landlord's petition, under  Docket  No.  BJ
          130151 RO be, and the same hereby is, granted, and that the  order
          issued by the Rent Administrator on October 6, 1987  under  Docket
          No. AJ 130037 B be, and the same hereby is, modified, in that  the
          rent reduction for rent-controlled tenants  provided  for  therein
          be, and the same hereby is,  changed  from  $13.00  per  month  to
          $10.00  per  month  effective  on  the  first  rent  payment  date
          following October 6, 1987 and in that the  garage  conditions  be,
          and the same hereby are, deleted as one of the bases for the  rent
          reduction for the rent-controlled tenants; and it is     

               FURTHER ORDERED, that the landlord's petition,  under  Docket
          No. EG 130189 RO be, and the same hereby is, denied; and it is 

               FURTHER ORDERED, that the rent-controlled tenants  may  repay
          any arrears in rent arising as a result of this order in six equal 
          monthly installments commencing with the next rent payment date.

          ISSUED:



           
                                          ELLIOT                      SANDER
                                          Deputy Commissioner



                                          















          ADM. REVIEW DOCKET NOS. BJ 130151 RO AND EG 130189 RO





















    

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