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

          APPEAL OF                              DOCKET NO.:              
                                                 RENT ADMINISTRATOR'S 
                                                 DOCKET NO.:
               ALAN R. BUSH/AMIET CORP.,         PREMISES:                   
                                                 421 West 162nd St.
                                                 Apt. 2-I
                                                 New York, NY

                              PETITIONER      : 


               The above-named owner timely filed a petition for 
          administrative review of an order issued on October 5, 1987 
          concerning the housing accommodations relating to the above- 
          described docket number known as Apt. 2-I, 421 West 162nd Street, 
          New York, New York, wherein the Administrator established the 
          tenant's rent at $1.00 per month as of July 7, 1987.

               The issue in this appeal is whether the Administrator's order 
          was warranted.

               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 this administrative appeal.  

          ADM. REVIEW DOCKET NO.: BK410289RO

               This proceeding was commenced on July 30, 1987 when the rent 
          stabilized tenant filed a complaint alleging numerous, serious 
          defective conditions in his apartment due to a recent fire in the 
          building.  The tenant sought a rent reduction.

               On August 11, 1987, the Division sent the owner a copy of the 
          tenant's complaint.

               In an answer dated on August 31, 1987, the owner stated that 
          a July 9, 1987 fire had occurred on the top floor at Apt. 5J; that 
          repairs are being performed, including the subject Apt. 2I; that 
          the tenant is using three rooms of the apartment, where damage is 
          slight or non-existent; and that the parties had agreed to pro-rate 
          the rent until repairs are finished. 

               An inspection of the subject apartment was conducted on August 
          31, 1987 by a staff member, who reported that a fire caused a 
          water-stained and peeling apartment hall ceiling; a cracked and 
          bulging living room ceiling; a missing light fixture in the living 
          room; missing walls; cracked and bulging front bedroom ceiling, 
          misaligned three inches by three inches; bathroom ceiling with hole 
          thirty-six inches by twelve inches; and water-stained, peeling 
          interior in the master bedroom closet.  The inspector also noted 
          that gas, electricity and hot and cold water were being provided; 
          and that the tenant remained in occupancy. 

               The Administrator's order established the rent at $1.00 per 
          month pursuant to Section 2522.6 of the Rent Stabilization Code, 
          and stated that based on the owner's failure to comply with the 
          requirements of Section 2522.4(d) the legal regulated rent of $1.00 
          was effective as of the date of the fire. 

               It is noted that the Administrator's order erroneously 
          reversed the mailing address of the owner with that of the tenant; 
          and that the subject Apt. 2I was in error listed as Apt. 2F.

               In the petition for administrative review, the owner submits 
          a signed statement from the tenant, that the tenant was able to use 
          3 of the 5 rooms in the apartment and had agreed to prorate the 
          rent; that the order incorrectly lists the apartment as 2F instead 
          of 2I and incorrectly reduces rent to $1.00 as if the tenant had 
          been forced to vacate.

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

               The sections of the Rent Stabilization Code cited in the 
          Administrator's order [2522.6 and 2522.4(d)] are applicable to the 

          ADM. REVIEW DOCKET NO.: BK410289RO

          situation where a tenant is forced to vacate an apartment because 
          it is legally uninhabitable.  The rent is established at $1.00 in 
          order to maintain the landlord/tenant relationship between the 
          parties until the tenant can resume possession.  In the instant 
          case, it is undisputed that the tenant continued to remain in 
          occupancy despite the defective conditions as described in the 
          foregoing August 31, 1987 inspection report.  In such 
          circumstances, establishing the rent at $1.00 per month is not 

               The applicable code sections are 2523.4 and 2520.6(r).  
          Section 2523.4 requires DHCR to order a rent reduction, upon 
          application by a tenant, to the level in effect prior to the most 
          recent guidelines adjustment, where it is found that the owner has 
          failed to maintain required services.  Required services are 
          defined by Section 2520.6(r) as that space and those services 
          provided or required to be provided on the applicable base date. 
          Based on the undisputed facts of this case that three of the five 
          rooms of the subject apartment were habitable, the rent should be 
          reduced effective September 1, 1987 the month after the owner was 
          served the tenant's complaint.   

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

               ORDERED, that this petition be, and the same hereby is, 
          granted, and that the Rent Administrator's order be, and the same 
          hereby is, modified to order a guideline reduction in the legal 
          regulated rent effective September 1, 1987, the month after the 
          owner was served the tenant's complaint.


                                          JOSEPH A. D'AGOSTA
                                          Deputy Commissioner



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