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

          APPEAL OF                               DOCKET NO.:              
                 WIENER REALTY COMPANY,
                                                  RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                   PETITIONER     CJ430112HW        


          On May 25, 1989, the above-named petitioner-owner filed a petition 
          for administrative review (PAR) of an order issued on May 15, 1989, 
          by the Rent Administrator, concerning the housing accommodations 
          known as 301 East 38th Street, New York, New York, apartments 6-C 
          and 15-I, wherein the Administrator determined that a reduction in 
          rent was warranted based upon a reduction in services.  The Rent 
          Administrator also directed full restoration of 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 reduced 
          the rent of the subject apartments.

          On October 22, 1988, the tenants filed a complaint alleging that 
          the owner, among other things, was not providing hot-water ser- 

          The owner filed an answer to the complaint alleging that massive 
          renovations have been completed to improve the level of service in 
          the subject building and that all service items have been cor- 


          A Division of Housing and Community Renewal (DHCR) inspection 
          conducted on April 13, 1989, revealed that, although the heat and 
          hot water was adequate for all other complaining tenants, the 
          kitchen hot water temperature in apartments 6-C and 15-I was 

          On appeal, the petitioner-owner asserted, in pertinent part, that 
          all service deficiencies noted in the tenants' complaint including 
          heat and hot-water were corrected in all apartments.

          The petition was served on the tenants on September 25, 1989, but 
          the tenants failed to file answer to the petition.

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

          Pursuant to Section 2523.4(a) of the Rent Stabilization Code, a 
          tenant may apply to the Division of Housing and Community Renewal 
          (DHCR) for a reduction of the legal regulated rent to 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 heat 
          and hot water.

          For rent controlled tenants, Section 2202.16 of the Rent and 
          Eviction Regulations provides that a finding that an owner failed 
          to maintain services may result in an order of decrease in maximum 
          rent, in an amount determined by the discretion of the Rent Admin- 

          Housing Maintenance Code regulations relating to supply of hot 
          water provide as follows:

               Section 27-2031 Supply of hot water when required:  
               Except as otherwise provided in this article, every bath, 
               shower, washbasin and sink in any dwelling unit in a 
               multiple dwelling. . . . . . . . . . shall be supplied at 
               all times (between the hours of six a.m. and midnight) 
               with hot water at a constant minimum temperature of 120@ 
               Fahrenheit from a central source constructed in accord- 
               ance with provisions of the building code and the 
               regulations of the department.


          A review of the file clearly shows that the owner failed to provide 
          hot water services for apartment 6-C and 15-I.  

          The inspection report finding inadequate hot water services 
          confirms the tenants' complaints that the owner failed to meet the 
          standard set forth in Section 27-2031 of the Housing Maintenance 

          The owner did not submit any evidence that the deficiencies noted 
          on the inspector's report were completed in a workmanlike manner at 
          the time of the DHCR's inspection or at any time prior to the 
          issuance of the Administrator's order.

          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 April 13, 1989, and that 
          pursuant to Section 2523.4(a) of the Code and Section 2203.16 of 
          the Rent and Eviction Regulations the Administrator was mandated to 
          reduce the rent upon determining that the owner had failed to 
          maintain services.

          The Commissioner notes that owner's claim on appeal that the 
          inspection of April 13, 1989, found heat and hot-water services 
          adequately provided is correct as it pertains to all apartments 
          other than apartments 6-C and 15-I.  As to these apartments, the 
          inspection report specifically stated that the services in question 
          were inadequate.

          Accordingly, the Commissioner finds that the owner has offered 
          insufficient reason to disturb the Rent Administrator's determina- 

          Upon a restoration of services the owner may separately apply for 
          a rent restoration.

          As regards the rent stabilized tenants 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 and Evic- 
          tion Regulations for New York City, and the Rent Stabilization Law 
          and Code, it is

          ORDERED, that the owner's petition be, and the same hereby is, 
          denied, and the Rent Administrator's order be, and the same hereby, 


          is affirmed.


                                                JOSEPH A. D'AGOSTA
                                                Deputy Commissioner          

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