CJ430009RO

                                  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
          APPEAL OF                               DOCKET NO.:  CJ430009RO
                                                  
          LEWIS MARKS C/O OMNIA PROPERTIES        RENT
          FOR 525 WEST END CORP.                  ADMINISTRATOR'S DOCKET 
                                                  NO.: BI420020B
                                  PETITIONER            
          ----------------------------------x


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
              AFTER REOPENING AND MODIFYING RENT ADMINISTRATOR'S ORDER

               On October 7, 1988 the above named petitioner-owner filed a 
          Petition for Administrative Review against an order of the Rent 
          Administrator issued September 2, 1988. The order concerned various 
          housing accommodations located at 525 West End Avenue, New York, 
          N.Y.  The Administrator directed restoration of services and 
          ordered a $2.00 per month rent reduction based on the owner's 
          failure to maintain essential services.

               The Commissioner issued an order on May 7, 1990, dismissing 
          the owner's petition as untimely.  The owner filed a request for 
          reconsideration of the Commissioner's order on May 18, 1990.  On 
          June 7, 1990 the Commissioner issued an order reopening this 
          proceeding for a determination on the merits.

               The Commissioner has reviewed the record and carefully 
          considered that portion relevant to the issues raised by this 
          appeal.

               This proceeding was commenced on September 30, 1987 by the  
          filing of a Statement of Complaint of Decrease in Building-Wide 
          Services by one rent controlled tenant wherein it was alleged that 
          the incinerators had been shut down by the owner and that the 
          hallway wallpaper was torn and dirty with the wallpaper on the 12th 
          floor stripped off for more than one year and never rehung.

               The owner was served with a copy of the complaint and afforded 
          an opportunity to respond. The owner filed a response on December 
          12, 1987 and stated that it had made ongoing repairs to the 
          incinerator and that the building maintenance staff had seen to the 
          removal of refuse during the periods that the incinerator was not 
          functioning.  With regard to the issue of the wallpaper, the owner 












          CJ430009RO

          stated that the 12th floor wallpaper had been removed because it 
          had deteriorated, that a decision regarding the refurbishment of 
          the public areas had yet to be made and that the painting 
          contractor for the building had been authorized to paint the 12th 
          floor public hall in the interim.

               On January 11, 1988 the Administrator sent the complaining 
          tenant a notice inquiring as to whether the items complained of had 
          been repaired.  The tenant replied on February 2, 1988 and, in sum, 
          stated that the incinerator had still not been restored on a 
          permanent basis and that the wallpaper on the 12th and 14th floors 
          had been fixed but the wallpaper on all other floors had not.
           
               The Administrator ordered a physical inspection of the subject 
          building.  The inspection was conducted on April 20, 1988 and 
          revealed that painting had not been completed for all public 
          hallways below the 12th floor.

               The Administrator issued the order here under review on 
          September 2, 1988 and ordered a $2.00 per month rent reduction for 
          all rent controlled tenants of the subject building.

               On appeal the owner states that it never received notice of 
          the complaint described above and that several tenants listed by 
          the Administrator as rent controlled are, in fact, rent stabilized.  
          The petition was served on the tenants on November 2, 1988. 

               Two tenants filed responses wherein they stated, in sum, that 
          the owner had not repainted the hallways in question and that the 
          petition should be denied.
           
               After careful review of the evidence in the record, the 
          Commissioner is of the opinion that the petition should be denied.

               The owner's statement that it never received notice of the 
          complaint is controverted by the fact that it filed a response on 
          December 12, 1987 wherein it stated that the twelfth floor hallway 
          would be painted and that a decision on painting or papering the 
          other public hallways was pending.

               With regard to the allegation regarding the tenants who are 
          entitled to the rent reduction, the Commissioner notes that the 
          complaining tenant herein is a rent controlled tenant.  Section 
          2202.16 of the Rent and Eviction Regulations authorizes the 
          Administrator to order a decrease of the maximum rent based on a 
          finding of failure to maintain services.  The rent reduction is to 
          be in an amount which the Administrator finds to be the reduction 
          in rental value of the housing accommodations because of the 
          decrease in services.  Essential services are defined in Section 
          2200.3 to include repairs, decorating and maintenance. Accordingly, 
          when a rent controlled tenant files a building-wide services 
          complaint, the maximum rent of the rent controlled tenants in the 






          CJ430009RO

          building is reduced to reflect the reduced rental value of the 
          apartments.  The Administrator correctly ordered a $2.00 per month 
          rent reduction for all rent controlled tenants in the building 
          based on the inspector's report.  

               The owner is correct, however, in stating that the 
          Administrator ordered a rent reduction for apartments where the 
          tenant in occupancy was rent stabilized and not rent controlled.  
          Accordingly, the Commissioner revokes the rent reduction for Apts. 
          2D, 3C, 3H, 3I, 4D, 4E, 5A, 5F, 6B, 6E, 6H, 6I, 7B, 7D, 8I, 8J, 
          10G, 12C and 12D.  If any tenant of these apartments owes arrears 
          by reason of the Commissioner's determination herein, the arrears 
          may be paid off in installments of $2.00 per month.  If any tenant 
          vacates the apartment or has previously vacated, the arrears are 
          due and payable immediately.  The order here under review is 
          affirmed as modified herein.

               The Commissioner notes that the owner's rent restoration 
          application (Docket No. EH430149OR) was granted on December 11, 
          1990.

               THEREFORE, pursuant to the Rent and Eviction Regulations for 
          New York City 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 as modified herein.

          ISSUED:



                                                                             
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner
                                   






    

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