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

          APPEAL OF                              DOCKET NO.               
                                                 DG - 130269 - RO
                                                 D.R.O. DOCKET NO.           
                                                 CB - 130084 - B            

                IVY PROPERTIES, LTD.                                         

                              PETITIONER      : 


               On July 25, 1989, the above-named petitioner-owner filed an 
          Administrative Appeal against an order issued on June 20, 1989, by 
          the District Rent Administrator, 92-31 Union Hall Street, Jamaica, 
          New York, concerning the housing accommodations known as 141-25 
          Northern Boulevard, Flushing, New York, various apartments.

               The issue herein is whether the District Rent Administrator 
          properly reduced the regulated rents of various tenants in the 
          subject building on a building-wide basis.

               The District Rent Administrator's order, appealed herein, 
          found that a diminution of service had occurred and reduced the 
          rent of rent controlled apartments by $4.00 per month and further 
          reduced the rent of rent stabilized apartments to the level in 
          effect prior to the last rent guideline increase which commenced 
          before the effective date of the order.  This order was based upon 
          inspections, which showed that there is peeling paint and plaster 
          throughout the public hallways.

               On appeal, the petitioner-owner asserted in substance that the 
          tenants never complained of peeling paint and plaster throughout 
          the building and that is why it did not address the problem; that 
          the inspection report is inaccurate and that even if the inspection 
          report is accurate, the decrease in service is minor and the rent 
          reductions excessive.

          ADM. APPEAL DOCKET NO. DG - 130269 - RO

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

               A review of the record shows that the tenants filed a 
          Complaint of Decrease in Building-wide Services on February 18, 

               Inspections were held by the DHCR, on March 31, 1989 and April 
          28, 1989 and although the inspection reports show that the owner 
          rectified ten other complained-of conditions in the building, the 
          inspector found that there was peeling paint and plaster throughout 
          the public hallways. 

               The tenants' complaint filed with the District Rent 
          Administrator, on February 18, 1988, clearly shows that they, inter 
          alia, complained that the hallways have not been painted for more 
          than eight years.

               The owner filed an answer, dated March 29, 1988, to the 
          tenants' complaint and paragraph 8 of the answer stated that:

               "During the conversion process all the hallways will be 
          painted and wallpaper along the carpet will be installed.  The 
          first and part of the fifth floors are already completed."

               The Commissioner finds, therefore, that the petitioner's claim 
          that the tenants never complained about peeling paint and plaster 
          is not borne out by the record.

               Also, the owner's statement in paragraph 8 of its answer 
          demonstrates clearly that the owner was fully aware of the 
          painting-plaster problem from the beginning of the proceeding and 
          the statement constitutes an admission that the condition existed 
          prior to the DHCR inspection.

               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 which the District Rent Administrator 
          may determine.

          Pursuant to Section 2523.4(a) of the Rent Stabilization Code, 

               A tenant may apply to the DHCR for a reduction 
               of the legal regulated rent to the level in

          ADM. APPEAL DOCKET NO. DG - 130269 - RO

               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) of the Code to 
          include repairs and maintenance.

               The Commissioner finds that the Administrator properly based 
          his determination on the results of an impartial inspection which 
          bears greater probative value than the self-serving and unsupported 
          allegations of the owner; and that pursuant to Section 2202.16 of 
          the Rent and Eviction Regulations and Section 2523.4(a) of the 
          Code, the Administrator was mandated to reduce the rent upon 
          determining that the owner had failed to maintain services. 

               The inspector confirmed the existence of peeling paint and 
          plaster in the hallways and based on that inspection, the 
          Administrator was required to order a rent reduction.  For rent 
          stabilized tenants, the amount of rent reduction is not variable 
          but is always equal to the most recent guidelines adjustment, 
          regardless of the number or severity of the services not being 
          maintained.  For rent controlled tenants, the amount is within the 
          discretion of the Administrator and was appropriately established 
          herein at $4.00 per month. 
               This Order and Opinion is issued without prejudice to the 
          owner's right to file the appropriate application with the Division 
          for a restoration of rent based upon the restoration of services, 
          if the facts so warrant.

               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 this petition be and the same hereby is, denied, 
          and the Administrator's order be, and the same hereby is, affirmed.


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner



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