DF430044RO
                                  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.: DF430044RO 
                                                  
                                                RENT ADMINISTRATOR'S
                                                DOCKET NO.: CI430045B       
          Plaza Realty Investors,       
                                                
                                 PETITIONER  
          ----------------------------------x                      
                                                                       

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW     
                          

               On June 6, 1989, the above-named petitioner-owner filed a 
          petition for administrative review of an order issued on May 2, 
          1989, by the Rent Administrator, concerning the housing 
          accommodations known as 1476 Lexington Avenue, New York, N.Y., 
          various apartments, wherein the Administrator determined that the 
          rent for rent stabilized apartments should be reduced to the level 
          in effect prior to the last rent guideline increase which commenced 
          before the effective date of the order based upon a diminution of 
          services and further determined that the maximum legal rent for 
          rent controlled apartments should be reduced by $8.00 per month 
          based upon a diminution of services.  The Rent Administrator's 
          order was based upon an inspection held on February 17, 1989, which 
          disclosed that although several service items had been corrected, 
          some had not.  The inspection of February 17, 1989 revealed that 
          the front entrance door is warped; the bottom part of the floor is 
          missing and further that the public area hallway floors are stained 
          in some areas.

               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 various rent stabilized and rent controlled 
          apartments in the subject building.

               On appeal, the petitioner-owner asserted that at the time of 
          the DHCR's inspection most repairs were corrected and that those 
          conditions which remained were isolated occurrences and are 
          considered ordinary maintenance and that these same conditions were 
          minor in nature and not worthy of a rent reduction.  The owner 












          DF430044RO

          enclosed with the petition a photograph of the front door 
          purporting to show that it is not defective.

               The petition was served on the tenants on September 14, 1989.  
          Several tenants submitted answers claiming that the photograph is 
          misleading because it does not show the bottom portion which has a 
          large opening that has not been repaired.

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

               The tenants filed a Statement of Complaint of a decrease in 
          Building-Wide services on September 14, 1988.  

               On November 2, 1988, the owner filed an answer below alleging 
          that it is taking notice of the requested repairs and that 
          immediate arrangements for repair work will be effectuated.

               Section 2202.16 of the Rent and Eviction Regulations provides 
          that an owner's failure to maintain services may result in an order 
          of decrease in maximum rent, in an amount determined by the 
          discretion of the Rent Administrator.

               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 2200.3 of the Rent 
          and Eviction Regulations and Section 2520.6(r) of the Rent 
          Stabilization Code to include repairs and maintenance.

               A review of the record before the Commissioner clearly shows 
          that the owner did not submit any evidence that the deficiencies 
          noted in the inspection of February 17, 1989, had been corrected.

               The owner's claim on appeal that repairs were in progress is 
          not material insofar as it had ample opportunity to make all 
          repairs in a workmanlike manner, but had failed to completely do so 
          before the issuance of the Rent Administrator's order.

               The Commissioner has also considered and rejects petitioner's 
          claims on appeal that the conditions found below are ordinary 
          maintenance, minor in nature and not rent-reducing items.  A warped 
          front entrance door with a bottom piece of the door missing is a 
          service reduction worthy of the owner's attention as is stained 
          public hallways.  These deficiencies should have been immediately 
          corrected.  Clearly, the conditions found were not minor items that 
          occur normally despite ongoing maintenance or which would be 






          DF430044RO

          addressed as part of periodic maintenance.

               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 February 17, 1989, and 
          that pursuant to Section 2523.4 (a) of the Code and Section 2203.16 
          of the Rent and Eviction Regulations the rent reductions ordered by 
          the Administrator, based upon a rent determination that the owner 
          had failed to maintain services, were warranted.

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

               THEREFORE, in accordance with the provisions of the Rent and 
          Eviction 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 Rent Administrator's order be, and the same hereby is, 
          affirmed.

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


          ISSUED:                                    






                                                  ___________________        
                                                  Joseph A. D'Agosta         
                                                  Deputy Commissioner        
                                                 

                    






    

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