STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:
HEW-BURG REALTY CORP.,
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On September 14, 1989, the above-named petitioner-owner filed a
petition for administrative review of an order issued on August 28,
1989, by the Rent Administrator, concerning the housing accommoda-
tion known as 1779 81st Street, Brooklyn, New York, various tenants
wherein the Administrator determined that the rent for rent stabi-
lized apartments should be reduced to the level in effect prior to
the last rent guideline increase which commenced before the effec-
tive 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 $7.00 per month based upon a
diminution of services. The Rent Administrator's order was based
upon an inspection held on August 7, 1989, which revealed that
there was peeling paint and plaster in the public hallways and that
the courtyard drain was clogged..
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 appeal, the petitioner-owner asserted that the tenant-repre-
sentative mistakenly stated an incorrect zip code in the owner's
mailing address and that consequently, it was not given a fair
opportunity to participate in the proceeding; that the only reason
it was made aware of the reduction order was because the tenants
called the matter to its attention and that all service conditions
After a careful consideration of the entire evidence of record the
Commissioner is of the opinion that the administrative appeal
should be denied.
Section 2202.16 of the Rent and Eviction Regulations provides that
an owner's failure to maintain essential services may result in an
order of decrease in maximum rent, in an amount determined by the
discretion of the Rent Administrator.
Essential services are defined by Section 2200.3 to include
repairs, decorating, and maintenance.
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 re-
pairs, decorating, and maintenance.
The Commissioner has considered the petitioner's argument that it
received inadequate notice of the proceedings below and rejects it.
On January 3, 1989, a Notice and Transmittal of Tenants' Complaint
was mailed to the owner and the record demonstrates that the owner
answered on January 22, 1989 and was a full participant below.
Nearly seven months had elapsed from the time a copy of the ten-
ants' complaint was mailed to the owner to the time the Rent
Administrator's order was issued, on August 28, 1989.
The record before the Commissioner clearly shows that the owner has
not submitted any evidence that the deficiencies noted on the
inspector's report were completed in a workmanlike manner at the
time of the DHCR 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 August 7, 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
Accordingly, the Commissioner finds that the owner has offered
insufficient reason to disturb the Rent Administrator's determi-
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 that the Administrator's order be, and the same hereby
This Order and Opinion is issued without prejudice to the owner's
right to file the appropriate application with the Division for
restoration of rent based upon a restoration of services, if the
facts so warrant.
JOSEPH A. D'AGOSTA