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

          APPEAL OF                             DOCKET NO.: CC430198RO  
                                                RENT ADMINISTRATOR'S         
                                                DOCKET NO.: BL430050HW     
                    Nostra Realty Corp.
          c\o Hi-Rise Realty Management Ltd.                                 



               The above-named owner filed a timely petition for 
          administrative review of an order issued on February 25, 1988 
          concerning the housing accommodations known as 845 West End Avenue, 
          New York, New York, wherein the Administrator determined that there 
          had been a decrease in services.

               The Commissioner has reviewed all the evidence in the record 
          and has carefully considered that portion of the record relevant to 
          the issues raised by the petition.

               The tenants commenced this proceeding by filing a complaint on 
          December 8, 1987, asserting that the owner did not supply heat to 
          the premises between October 1, and November 8, 1987.

               In an answer, the owner established that a new burner and 
          boiler were installed during the period cited in the tenants' 
          complaint, noting that the installation was completed prior to 
          November 9, 1987.

               An inspection of the subject premises was conducted on January 
          25, 1988 by a member of the DHCR inspection staff.  On the 
          Administrator's instructions, the inspector measured both heat and 
          hot water. 


               Where access was obtained, the inspector reported inadequate 
          hot water in eighteen (18) apartments, and adequate hot water in 
          fourteen apartments.  The complaint of inadequate heat was not 
          confirmed.  Access was not obtained to forty seven (47) apartments.  
          Entries in inspection report also reflected that an individual 
          identifying himself as the president of the tenants' association 
          had called and left a message that services had been restored.  In 
          addition, in a written statement dated January 22, 1988, mailed 
          January 26, 1988, the Administrator was informed by the same tenant 
          that the condition in the complaint, presumably the lack of 
          adequate heat, had been resolved.

               Nevertheless, on February 25, 1988, the Administrator issued 
          three (3) sets of orders.  The Administrator granted rent 
          reductions to those tenants where the January 25, 1988 inspection 
          revealed inadequate hot water, primarily in the A,B, and C line 
          apartments, as well as one F line apartment.  The Administrator 
          also directed the owner to restore services.

               The Administrator denied rent reductions or terminated the 
          proceedings for those apartments where the inspection revealed that 
          heat and hot water services were adequate, or for which the tenants 
          failed to provide access for inspection on January 25, 1988.

               In the petition for administrative review, the owner argues, 
          in essence, that reducing the rent for some apartments based on 
          findings of inadequate hot water was inconsistent with findings of 
          adequate hot water for other apartments.  The owner also notes that 
          hot water was supplied to the tenants during the month-long 
          installation by temporary electric heaters.  Copies of the owner's 
          appeal were served on the tenants.

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

               The tenants' complaint below alleged lack of adequate heat.   
          The facts set forth therein established that heat was restored as 
          of November 9, 1987, which was prior to the date of the complaint.  
          The Administrator awarded rent reductions based on findings of 
          inadequate hot water, which was not alleged in the complaint.  
          However, the lack of notice to the owner of this condition is, 
          alone, sufficient to preclude rent reductions.  In addition, 
          entries in the inspector's report noting that the president of the 
          tenants' association had called and left a message that services 
          had been restored, and a signed statement by the same individual 
          confirming the telephone message, further compel that these rent 
          reductions be revoked.


               Rent arrears may be due the owner from the rent controlled 
          tenants as a result of this order.  The rent arrears shall be paid 
          in monthly installments which shall not exceed the amount of the 
          monthly rent reductions revoked herein.

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

               ORDERED, that this petition be, and the same hereby is, 
          granted, and that the Rent Administrator's orders directing that 
          services be restored and that rent reductions be granted to rent 
          controlled tenants, predicated on a finding of inadequate hot water 
          be, and the same hereby are, revoked.


                                                  Joseph A. D'Agosta         
                                                  Deputy Commissioner


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