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
        APPEALS OF                          : Administrative Review Docket
                                              Nos.: BK-430351-RO/BK-430372-RO  
                                            :
             IRVING STERN,                    District Rent Administrator's
                                              Docket No.: AG-430087-B          
                                            :
                       PETITIONER
        ------------------------------------X



            ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW





             On November 1 and 10, 1987, the above-named owner filed Petitions 
        for Administrative Review of an order issued on October 8, 1987, by the 
        Rent Administrator concerning the housing accommodations known as  305 
        West 71st Street, New York, New York, various apartments, wherein rent 
        was reduced due to a diminution of service.

             The petitions have been consolidated for disposition as they 
        involve similar issues of law and fact.

             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. 

             This proceeding was commenced on July 30, 1986 by the rent 
        stabilized and rent controlled tenants filing a complaint of decreased 
        services building-wide, alleging, among other things, defective central 
        air conditioning and defective janitorial services.





                                         -1-













        Docket Nos. BK-430351-RO and BK-430372-RO


             On August 22, 1986, the Division sent the owner a copy of the 
        complaint and the owner interposed an answer, wherein he alleged, that 
        the central air conditioning was the subject of a pending "Application 
        for Modification of Services", and that the remaining complaints were 
        groundless.

             On October 14, 1986 and December 22, 1986 a physical inspection of 
        the subject apartment was carried out by the Division of Housing and 
        Community Renewal (DHCR).  The inspector, in his report, noted that the 
        complained of conditions were as alleged by the tenant.

             Subsequently, the Administrator issued an order on October 8, 
        1987, based on the reports of the physical inspections, reducing the 
        rent of the rent  stabilized tenants who joined in the complaint to the 
        level that was in effect prior to the last rent guideline increase, 
        effective September 1, 1986.  For all rent controlled tenants, the rent 
        was reduced by $7.00 per month effective, November 1, 1987.

             In his petition for administrative review the owner requests 
        revocation of the Administrator's order raising substantially the same 
        points articulated in his answer below. Attached to the owner's 
        petition are various photocopied documents which were submitted with 
        the owner's Application for Modification of Services.

             After careful consideration the Commissioner is of the opinion 
        that these petitions should be denied.

             The Commissioner notes that while the owner questions the finding 
        of fact the record clearly reflects those finding by virtue of DHCR 
        inspection which occurred on October 14, 1986 and December 22, 1986.  
        The Commissioner further notes that the owner's Application for 
        Modification of Services, which was denied by this Division, is not 
        relevant to the finding herein, that there is a failure to maintain 
        required services.

             Pursuant to Section 2523.4(a) of the Rent Stabilization Code, a 
        tenant may apply to the DHCR  for a reduction of the legal regulated 
        rent to the level in effect prior to the most recent guidelines 
        adjustment and the DHCR shall so reduce the rent for the period for 
        which it is found that the owner has failed to maintain required 
        services.

             Required services are defined in Section 2520.6(r) to include 
        repairs and maintenance.

             Section 2202.16 of the Rent and Eviction Regulations provides that 
        if the owner fails to maintain services, the Rent Administrator may 
        order a decrease in the maximum rent in an amount which the Rent 
        Administrator, in his discretion, may determine.

                                         -2-







        Docket Nos. BK-430351-RO and BK-430372-RO 



             The Commissioner finds that the Administrator properly based his 
        determination of the entire record, including the results of the on- 
        site physical inspections conducted on October 14, 1986 and December 
        22, 1986, that pursuant to Section 2523.4(a) of the Code and Section 
        2202.16 of the Rent and Eviciton Regulations, the rent reductions 
        ordered by the Administrator were warranted.


             Moreover, the owner had thirteen months from the date of service 
        of the tenants' complaint until the issuance of the Administrator's 
        order to investigate the tenants' complaints and to make the necessary 
        repairs, but failed to do so.

             Therefore, the Commissioner finds that the Administrator properly 
        relied on the results of the inspections, and that based thereon, the 
        Administrator properly determined that the owner had failed to maintain 
        services and properly reduced the tenant's rent.

             This Order and Opinion is issued without prejudice to the owner's 
        right to file the appropriate application with the Division for a 
        restoration of rent based upon the restoration of services, if the 
        facts so warrant.

             THEREFORE, in accordance with the Rent Stabilization Law and Code, 
        and the Rent and Eviction Regulations of New York City, it is 

             ORDERED, that these petitions be, and the same hereby are, denied 
        and that the Rent Administrator's order be, and the same hereby is, 
        affirmed.


        ISSUED:

                                                                               
                                                      JOSEPH A. D'AGOSTA
                                                      Deputy Commissioner












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