DC 430263-RO;  DC 410535-RO;  DC 430355-RO
                                    STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEALS OF                              DOCKET NOS.:
                                                  DC 430263-RO;  
                                                  DC 410535-RO;
                                                  DC 430355-RO 
                   McALPIN HOTEL                  
              By GRENADIER REALTY,                RENT ADMINISTRATOR'S
                                                  DOCKET NOS.:
                                                  CE 430058-B
                                   PETITIONER     CF 410001-B       

                                RENT REDUCTION ORDERS           

          The above named petitioner-owner filed timely petitions for admin- 
          istrative review of orders issued on February 15, 1989, per Docket 
          No. CE 430058-B and on March 3, 1989 per Docket No. CF 410001-B, 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 tenants' 
          complaints of building-wide service decreases.

          The proceedings have been consolidated for disposition as they 
          involve common issues of law and fact.

          Among other items the tenants' complaints had alleged that the 
          elevators stopped on incorrect floors, that the elevators skipped 
          floors and that the doors were defective.

          The challenged order under Docket No. CE 430058-B directed rent 
          reductions based on the results of an inspection conducted on 
          December 21, 1988 that found two (2) of six (6) elevators, which 
          served all floors, out of service due to renovation. No defects 
          were reported for the four (4) elevators in operation.  A prior 
          inspection report dated November 17, 1988 indicated that new 
          elevators were being installed. Other complaints of decreased 
          service were not substantiated.

          DC 430263-RO;  DC 410535-RO;  DC 430355-RO

          The challenged order under Docket No. CF 410001-B also 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 

          In the appeals, as below, the owner points out 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 inde- 
          pendent of these proceedings, and noted that the work was scheduled 
          in stages so as to maintain adequate elevator service at all times.

          The record establishes that, when the inspectors visited the prem- 
          ises, the elevators that were operating were not defective.  Also 
          adequate elevator service was being maintained by four (4) eleva- 
          tors while the two (2) other units that served the same areas were 
          being upgraded.

          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.  The owner undertook a major elevator project 
          to modernize the equipment and should not have been penalized 
          because two (2) units were inoperative due to the upgrading.

          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.  However, as the hallway renova- 
          tions under way on November 23, 1988 had been completed by December 
          20, 1988, the record suggests the loose molding condition was also 
          corrected.  Consequently, it is likewise revoked as a basis for 
          rent reductions.  Moreover, there was no indication in the record 
          that any tenants were adversely affected.

          A third petition for administrative review filed by the owner, 
          inadvertently assigned Docket No. DC 410535-RO, is hereby termi- 
          nated as duplicative of the owner's administrative appeal under 
          Docket No. DC 430263-RO.

          DC 430263-RO;  DC 410535-RO;  DC 430355-RO

          Any arrears owed the owner by the tenants as a result of this order 
          may be paid by rent stabilized tenants over the course of the next 
          twelve (12) months, and by rent controlled tenants over the course 
          of the next three (3) months.

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

          ORDERED, that the owner's petitions per Docket Nos. DC 430263-RO 
          and DC 430355-RO be granted and that the Rent Administrator's 
          orders per Docket Nos. CE 430058-B and CF 410001-B be revoked.  It 
          is further

          ORDERED, that the owner's petition per Docket No. DC 410535-RO be 
          terminated as duplicative.


                                                JOSEPH A. D'AGOSTA
                                                Acting Deputy Commissioner


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