AR Docket Nos. DE 430265-RO, et al.
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 NOS.: DE 430265-RO;
EE 530058-RO;
EI 530061-RO;
EE 520128-RT;
EE 510191-RT;
PINEHURST PARTNERS EE 520146-RT;
AND EL 520223-RT;
VARIOUS TENANTS, FD 520095-RT
DISTRICT RENT ADMINISTRATOR'S
DOCKET NOS.: ZCH 530032-B;
ZDG 530150-OR;
ZDF 530117-B;
ZEE 530225-OR;
ZDD 530045-B;
ZEE 530078-OR
PETITIONERS
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AMENDED ORDER AND OPINION GRANTING OWNER'S AND TENANTS'PETITION
FOR ADMINISTRATIVE REVIEW, IN PART, AND MODIFYING ADMINISTRATOR'S
ORDERS IN RELATED DOCKET NUMBERS FOLLOWING REOPENING
AND RECONSIDERATION
This order is issued pursuant to the Commissioner's determination
dated November 4, 1991 granting the owner's request for reopening
and reconsideration of the above captioned Administrative Review
Order and Opinion dated September 20, 1991.
During the course of processing, several overlapping orders,
resolving the tenants' service complaints and the owner's rent
restoration applications, were issued, and were appealed by,
respectively, the owner and the tenants.
A PAR order issued on May 7, 1991 which attempted to resolve the
various PAR proceedings (Dockets Nos. DE-430265-RO; EF-520128-RT;
EE-510191-RT; EE-520146-RT; EE-530058-RO; EI-530061-RO) by
reviewing the history of the physical inspections made during
processing of the overlapping and conflicting service complaint
orders and rent restoration order. The order determined that the
last physical inspection on November 21, 1990 and the last rent
reduction order should be controlling as to all prior outstanding
orders and modified the Administrator's order to reinstate the
AR Docket Nos. DE 430265-RO, et al.
initial monthly rent reductions for both stabilized and controlled
tenants. On September 20, 1991, an amended order was issued, upon
the tenants' request, to include PAR Docket Nos. EL-520223-RT and
FD-520095-RT.
In the instant determination, considered pursuant to the owner's
request for reopening and reconsideration, the Commissioner is of
the opinion that the owner's and tenants' petitions should be
granted in part as more fully set forth below.
The owner's Petition for Administrative Review (PAR) under Docket
No. DF-430265-RO challenges the service reduction order issued on
April 27, 1989 under Docket No. CH-530032-B, which reduced the
tenants' rents for controlled tenants effective May 1, 1989 and
for stabilized tenants effective October 1, 1988, based on an
inspection conducted on February 22, 1989 that confirmed a lack of
storage space, an inoperative front door knob, peeling paint and
plaster in the public areas and an inoperative elevator. In the
appeal the owner argues that storage space was discontinued at the
direction of the Fire Department, and that, therefore, the
Administrator was constrained from ordering the owner to restore
the service and to impose rent reductions, that the condition of
the front doors was the result of vandalism, that the peeling
paint and plaster did not constitute decreased services and did
not affect all tenants, and that new elevator equipment was being
installed on the date of inspection, accounting for the
inoperative elevator.
The tenants' Petitions for Administrative Review under Docket Nos.
EE-520128-RT, EE-520146-RT and EE 510191-RT challenge the rent
restoration order issued on April 20, 1990, under Docket No.
DG-530150-OR, restoring rents previously reduced under the Docket
No. CH-530032-B. Rents were restored for controlled tenants
effective May 1, 1990 and for stabilized tenants effective
November 1, 1989, based on the report of an inspection held on
January 16, 1990 that indicated that there was a storage space in
the basement, that the front door was self closing and had a door
knob, that there was no evidence of peeling paint and plaster in
the public areas and that the elevator was working properly. In
the appeal the tenants allege that, in fact, storage space is
neither available nor accessible to the tenants.
The owner's Petition for Administrative Review under Docket No.
EE-530058-RO challenges the rent reduction order issued March 28,
1990 under Docket No. DF-530117-B which reduced the rents for
controlled tenants effective April 1, 1990 and for stabilized
tenants effective August 1, 1989, because storage space was not
being provided although the owner was previously ordered to
restore the service. The owner's answer below, dated November 27,
1989, had stated that the owner was in the process of preparing
one room in the basement that would be acceptable to the Fire
AR Docket Nos. DE 430265-RO, et al.
Department. However, on appeal, the owner argues that the
Administrator was constrained from determining that storage space
was a required service because the owner had discontinued the
service at the direction of the Fire Department.
The tenants' Petition for Administrative Review under Docket No.
EL-520223-RT challenges the rent restoration order issued November
28, 1990 under Docket No. EE-530225-OR restoring the rents for
controlled tenants effective December 1, 1990 and for stabilized
tenants effective July 1, 1990 based on an October 26, 1990
inspection which reported a storage space in the basement. The
petitioners assert that the tenants are denied access to the
storage area.
The owner's Petition for Administrative Review under Docket No.
EI-530061-RO challenges the rent reduction order issued August 9,
1990 under Docket No. DD-530045-B which reduced the rents for
controlled tenants effective September 1, 1990, and for stabilized
tenants effective May 1, 1989 based on an inspection held on
November 20, 1989 which found the building entrance and vestibule
doors to be defective, in that the doors were not self closing and
the required (vestibule) door was not self locking. The
Administrator also determined, based on the owner's statements
that storage space had been discontinued because the Fire
Department found that the storage facilities constituted a fire
hazard and that the owner was in the process of preparing a room
that would be acceptable to the Fire Department, that the tenants
were being deprived of storage space service. On appeal the owner
argues that the Administrator's rent reduction order herein was
inconsistent with the decision under Docket No. DG-530150-OR which
restored rents effective November 1, 1989, previously reduced
under Docket No. CH-530032-B. The petitioner also argues that the
rent reduction for lack of storage space was improper as there had
been no finding that storage space was a required service for all
or some of the tenants.
The tenants' Petition for Administrative Review under Docket No.
FD-520095-RT challenges the rent restoration order issued March 6,
1991 under Docket No. EI-530078-OR restoring the rent for
controlled tenants effective April 1, 1991 and for stabilized
tenants effective February 1, 1991, based on an inspection held on
November 21, 1990, which revealed that the building vestibule door
was self-closing and self-locking, and that storage space was
provided in the basement. The owner was given the opportunity to
and did repair a loose vestibule door knob prior to the date the
order was issued.
The tenants challenge the order arguing that, while storage space
is provided, the tenants are denied access, as the tenants must go
through the superintendent, who does not live on the premises and
is frequently unavailable. The petitioners point out that an
AR Docket Nos. DE 430265-RO, et al.
inspection is inadequate to resolve the issue of access. The
petitioners also assert that the entrance and vestibule door
problems previously noted reoccur periodically.
Section 2520.6(r) of the Rent Stabilization Code defines required
services as those services furnished or required to be furnished
to the continuously stabilized housing tenants on May 31, 1968 and
all additional services provided or required to be provided
thereafter. Section 2200.3 of the Rent & Eviction Regulations,
defining essential services for controlled tenants, contains
similar provisions.
The record suggests that the owner provided storage space to
tenants in the past, and that no tenant was denied the service.
Accordingly, the storage space constitutes a building-wide service
which the owner is required to provide on request. Therefore, the
the owner's argument that the Administrator was constrained from
ordering the owner to reinstall the service and from imposing
rent reduction must be dismissed as being without logic or merit.
The fact that the Fire Department determined that the storage
facilities, as provided or utilized, did not comply with
applicable fire ordinances, did not operate to discontinue storage
space as a service provided to the tenants. Rather, it mandated
the owner to provide the service in conformity with the
regulations. While the owner need not provide the identical
space, the owner remains responsible to provide the service on the
same basis as before. The owner is correct that items that
represent a fire hazard may be removed.
Concerning the effective dates for imposing rent reductions and
rent restorations, rent-control provisions provide that rent
reductions may be granted to tenants for each reduction in service
prospectively as of the first date the rent is due following the
issuance of each order. Rent restorations likewise operate
prospectively. No more than one rent reduction may be authorized
for an identical condition previously enumerated and which is not
extinguished. The Administrator may grant partial rent
restorations to controlled tenants until all services are
restored.
For rent stabilized tenants, rent reductions and rent
restorations are effective the first rent payment date following
service of the complaint or application on the adverse party.
Where an order is already in effect for any service decrease no
further rent reduction is authorized. The owner may not demand
nor collect any rent increase from rent stabilized tenants until
the Administrator determines that all services are restored.
It is further noted that rent controlled tenants may be entitled
to rent reductions even if they did not sign the complaint.
AR Docket Nos. DE 430265-RO, et al.
Stabilized tenants can apply to the Administrator for rent
reductions.
Concerning the lack of adequate storage space, the Commissioner
notes that the Administrator's April 20, 1990 order under Docket
No. DG-530150-OR restored rents for stabilized tenants effective
November 1, 1989. However, the owner's answer dated November 27,
1989 to the tenants' complaint under Docket No. DF-530117-B stated
that the owner was in the process of preparing one room in the
basement for storage that will be acceptable to the Fire
Department. The owner's statement in the contemporaneous
proceedings constituted an admission that, in fact, storage space
was not provided until after November 27, 1989. The January 16,
1990 inspection under Docket No. DG-530150-OR did reveal the
presence of a storage space, as well as a functioning elevator and
no evidence of peeling paint and plaster. Based on the complete
record of overlapping proceedings, the Administrator should have
terminated the rent reductions imposed effective October 1, 1988
for stabilized tenants, by the first rent payment date following
the January 16, 1990 inspection that corroborated the restoration
of storage space. The rent restoration date under Docket N . DG-
530150-OR is therefore amended to be effective February 1, 1990.
For rent controlled tenants, the effective date of the rent
reductions and the rent restorations, operate prospectively as of
the first rent payment date following the issuance of the orders.
Rent reductions were properly imposed effective May 1, 1989, and
the owner became entitled to rent restoration, effective May 1,
1990.
The tenants' objection that the availability or access to storage
space was restricted was not addressed. The proceedings are,
therefore, remanded to the Administrator to ascertain if access
and availability were restricted so as to constitute a reduction
in service in view of past practice. If the Administrator finds
disparity between past and present practices with regard to access
to and availability of storage space, further rent reductions may
be warranted subsequent to January 31, 1991 for rent stabilized
tenants, and subsequent to April 30, 1990 for rent-controlled
tenants.
Concerning the defective front door and vestibule door, the
Commissioner notes that t e November 20, 1989 inspection (DD-
530045-B) found the equipment to be defective. The
Administrator's order under Docket No. EI-530078-OR established
that most services had been restored at the time of the November
21, 1990 inspection; the owner was advised to and did repair a
loose vestibule door knob thereafter. Based on the November 21,
1990 inspection which revealed substantial repairs to have been
undertaken, the Administrator's order under Docket N . EI-530078-
OR is affirmed. As a result of the overlapping rent reduction
proceedings concerning storage space and defective entrance and
AR Docket Nos. DE 430265-RO, et al.
vestibule doors, rent reductions for stabilized tenants continued
through January 31, 1991.
The Commissioner affirms the Administrator's orders below which
imposed rent reductions for rent controlled tenants for defective
front door and vestibule door equipment effective May 1, 1989
through April 30, 1990 (CH-530032-B/DG-530150-OR), and from
September 1, 1990 through March 3 , 1991 (DD-530045-B/EE-530078-
OR). The records reveal no errors, and no overlap between the two
rent reduction periods for these services as to rent controlled
tenants.
With regard to the owner's suggestion that the condition of the
elevator and peeling paint and plaster in public areas, reported
below were not rent impairing violations, the Commissioner finds
that the Administrator properly determined that the both
controlled and stabilized tenants were entitled to rent
reductions. The Commissioner notes that defective conditions
continued to exist or had reoccurred five (5) months after the
tenants filed their initial complaints. The Commissioner rejects
the arguments that these services did not affect all tenants whose
rents were reduced. All tenants have the same rights to well
maintained, public area services. The conditions reported
constituted building-wide reductions of services, entitling
tenants to rent reductions.
In summary, the Commissioner notes that the rents were partially
and properly restored for rent controlled tenants during the
course of the proceedings. Rent reduction for stabilized tenants
continued effective October 1, 1988 through January 31, 1991, due
to overlapping rent reduction orders, until all services were
determined to have been restored.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, and the New York City Rent and
Eviction Regulations, it is
ORDERED, that the Administrator's orders finding defective
conditions as to the building entrance and vestibule doors, the
lack of storage space, inoperative elevator and peeling paint in
the public areas, and reducing rent accordingly be affirmed, as
provided above, and it is further
ORDERED, that the owner's petition for administrative review
under Docket Numbers DE-430265-RO, EE-530058-RO and EI-530061-RO
regarding the effective dates of rent reductions and rent
restorations be granted, in part, and the effective dates of the
rent restorations be modified for rent stabilized tenants, as
provided above, and it is further
AR Docket Nos. DE 430265-RO, et al.
ORDERED, that the tenants' petitions regarding the alleged
continued deprivation by the owner of access to storage space
(under Docket Numbers EE-520128-RT, EE-510191-RT, EE-520146-RT,
EL-520223-RT and FD-520095-RT) be granted to the extent of
remanding the matter to the Administrator for further
consideration, in accordance with the above.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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