BH210186RO

                                  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


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          IN THE MATTER OF THE ADMINISTRATIVE   ADMINISTRATIVE REVIEW
          APPEAL OF                             DOCKET NO.: BH210186RO
                                                  
                                                RENT ADMINISTRATOR'S
                  FARHAT REALTY CORP.           DOCKET NO.: AJ210266S      
                                                
                                                         
                                 PETITIONER  
          ----------------------------------x                      
                                                                       

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW     
                          
               On August 4, 1987, the above-named petitioner-owner filed a 
          petition for administrative review against an order issued on July 
          14, 1987 by the Rent Administrator, concerning the housing 
          accommodation known as 1577 Bushwick Avenue, Brooklyn, N.Y. Apt. 2, 
          wherein the Administrator reduced the rent based on a finding that 
          the owner had failed to provide or maintain services. The 
          determination was based on the findings of a DHCR inspection, which 
          was conducted on March 18, 1987.  The Rent Administrator also 
          directed restoration of all services.

               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 issue herein is whether the Rent Administrator properly 
          issued the order which found that a diminution of service had 
          occurred.

               This proceeding was commenced when the tenant filed a 
          complaint on September 30, 1986 in which several items requiring 
          repairs were listed.

               In answer to the complaint, the owner stated that the subject 
          apartment is located in a two family house and is not subject to 
          regulation.  A certificate of occupancy confirming this fact was 
          submitted.

               In the petition for administrative review, the owner again 
          asserts that the building is a two family dwelling and not subject 
          to regulation.













          BH210186RO

               In answer to the petition, the tenant asserts that the subject 
          building is combined with two other buildings to constitute a 
          horizontal multiple dwelling, sharing a common boiler and water and 
          sewage line, and occupied by six or more families.

               After a careful consideration of the entire evidence of record 
          the Commissioner is of the opinion that the administrative appeal 
          should be denied.

               The Commissioner has considered the petitioner's contention 
          that the subject apartment is located in a two family house and 
          that the DHCR lacks jurisdiction to consider the tenant's complaint 
          and finds this argument to be without merit.

               A review of DHCR records shows that in an appeal filed by the 
          tenant, under Docket No. EL210252RT, involving the same owner and 
          premises, the Commissioner issued a determination on June 15, 1993, 
          which addressed the jurisdictional issue raised by the owner 
          herein.

               Based on a DHCR inspection conducted on behalf of the 
          Commissioner, on appeal in Docket No. EL210252RT, the Commissioner 
          found that the tenant's building (1577 Bushwick Avenue) is a 
          component of a horizontal multiple dwelling along with 1573 
          Bushwick Avenue and that based on a preponderance of the credible 
          evidence, apartment #2 at 1577 Bushwick Avenue is subject to 
          regulation under the Rent Stabilization Law and Code.  That same 
          decision determined that the subject apartment is contained in a 
          horizontal multiple dwelling containing eight residential units.

               A review of the record in the instant proceeding indisputably 
          shows that the complained-of-conditions and concomitant diminution 
          of service existed at the time of the Division of Housing and 
          Community Renewal (DHCR) inspection held on March 18, 1987, and at 
          the time of the issuance of the Rent Administrator's order on July 
          14, 1987.

               Pursuant to Section 2523.4 of the Rent Stabilization Code, 

                    "A tenant may apply to the DHCR for a reduction of 
                    the legal regulated rent at 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.

               The owner had in excess of eight months from the date of 
          service of the tenant's complaint until the issuance of the 
          Administrator's order to investigate the tenant's complaint and to 
          make the necessary repairs, but failed to do so.






          BH210186RO


               The Commissioner finds that the Administrator properly based 
          his determination on the entire record including the results of the 
          on-site physical inspection conducted on March 18, 1987 and that 
          pursuant to Section 2523.4(a) of the Code, the Administrator was 
          mandated to reduce the rent upon determining that the owner had 
          failed to maintain services.

               Accordingly, based on a preponderance of the evidence the 
          Commissioner finds that the owner has offered insufficient reason 
          to disturb the Administrator's determination and that the 
          Administrator properly based his determination on the entire 
          record, including the results of the on-site inspection conducted 
          in the subject apartment.

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

               The automatic stay of the retroactive rent abatement that 
          resulted by the filing of this petition is vacated upon issuance of 
          this order and opinion.

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

               ORDERED, that this petition be, and the same hereby is, 
          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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