ADM. REVIEW DOCKET NO.: DC 410262 RO
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.:
DC 410262 RO
:
RENT ADMINISTRATOR'S
DOCKET NO.:
CF 410001 B
McALPIN HOTEL
BY GRENADIER REALTY
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN ACCORDANCE WITH PRIOR DEPUTY COMMISSIONER'S ORDER
REVOKING RENT REDUCTION ORDER
On March 14, 1989, the above-named petitioner-owner filed a
petition for administrative review of an order issued on March 3,
1989, by the Rent Administrator, concerning the housing
accommodation known as 50 West 34th Street, New York, New York,
also known as the McAlpin Hotel, wherein the Administrator
determined the tenant's complaint of building wide service
decreases.
The challenged order under Docket No. CF 410001-B directed
rent reductions based on inspections conducted on November 23, 1988
and December 20, 1988 that also reflected that two (2) of the six
(6) elevators were out of service due to renovation.
The November 23, 1988 inspection report also cited torn
wallpaper due to vandalism and some minor loose hallway molding,
but that work was in progress to install new wall covering. The
December 20, 1988 inspection report cited no wallpaper defects but
was silent as to the wall molding. Other complaints of decreased
services were found to have been addressed or were not
substantiated.
ADM. REVIEW DOCKET NO.: DC 410262 RO
On December 23, 1992, the Deputy Commissioner issued an order
per Docket Nos. DC 430263 RO/DC 410535 RO/DC 430315, wherein the
Commissioner granted the owner's administrative appeals requesting
that the rent reduction granted per Docket No. CF 420001 B, the
order herein under appeal, as well as the rent reduction granted
per Docket No. CF 430058 be revoked.
The Commissioner found that the owner had established that the
elevator interruptions were due to a modernization project at a
substantial cost to the owner, albeit pursuant to an order of the
Court independent of these proceedings, and concurred that the work
was scheduled in stages so as to maintain adequate elevator service
at all times.
The Commissioner also pointed out that the inspectors reported
that the elevators that were operating were not defective, and that
adequate elevator service was being maintained by four (4)
elevators while the two (2) other units that served the same areas
were being upgraded.
The Commissioner further noted that service interruptions
arising in the course of maintenance and upgrading are not, absent
other factors, sufficient grounds for imposing rent reductions
normally imposed when maintenance and repairs are lacking or
inadequate. Based on a finding that the owner had undertaken a
major elevator project to modernize the equipment, the Commissioner
concluded that the owner should not have been penalized because two
(2) units were inoperative due to the upgrading.
The Commissioner also revoked the loose molding condition as
a basis for rent reduction. The Commissioner pointed out that
while the December 20, 1988 inspection per Docket No. CF 410001-B
was silent concerning the minor loose hallway wall molding reported
per the November 23, 1988 inspection, as the hallway renovations
under way on November 23, 1988 had been completed by December 20,
1988, the record suggested the loose molding condition was also
corrected. It was further noted that there was no indication in
the record that any tenants were adversely affected.
The petition herein names only one tenant, rent stabilized,
not included by the owner in the related appeals.
In accordance with the Commissioner's findings in the December
23, 1992 order, the owner's appeal is hereby granted. The rent
reduction granted to rent stabilized tenants per Docket No. CF
410001 B is hereby revoked. In fact, only one rent stabilized
tenant is indicated in the appeal and below, the registered
occupant of Apartment No. 15C3.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
ADM. REVIEW DOCKET NO.: DC 410262 RO
ORDERED, that this petition be granted, and that rent
reductions granted by the Administrator hereby are revoked as per
the Commissioner's order of December 23, 1992. Any arrears due the
owner from the tenant(s) as a result of this order may be paid in
equal monthly installments over the course of the next twelve (12)
months.
ISSUED:
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner
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