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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.: DD530095RO
KENNETH DIAMONDSTONE
RENT ADMINISTRATOR'S
DOCKET NO.: CC410078B
PETITIONER
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On April 17, 1989 the above-named petitioner-owner filed a petition
for administrative review (PAR) of an order issued on March 14,
1989, by the Rent Administrator, concerning the housing accommo-
dation known as 609 West 186th Street, New York, N.Y., wherein the
Administrator reduced the rent of rent controlled and rent stabi-
lized tenants upon a finding of a decrease in services building
wide.
The Commissioner has reviewed all of the evidence in the record and
has carefully considered that portion of the record relevant to the
issues raised by the administrative appeal.
This proceeding was commenced by the filing of a complaint of
decrease in services by the tenants. A copy of the tenants'
complaint was served on the record owner who responded in an answer
dated June 20, 1988 that all conditions in the tenants' complaint
had been corrected. Thereafter, on November 4, 1988, an inspection
was conducted by a Division employee which confirmed some of the
complained of conditions, resulting in the order hereunder review.
In the PAR, the owner contends that he was never served with notice
of the tenants' complaint and had no opportunity to respond; that
the complaints do not constitute rent impairing violations; that
the order is erroneously retroactive to a date prior to his
ownership; that the lag between the date of inspection and the
issuance date of the order prejudices the owner who was prevented
from taking corrective measures sooner; that the items listed in
the rent reduction order are minor or cosmetic in nature; and, that
the rent reductions are an abuse of discretion.
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After careful consideration, the Commissioner is of the opinion
that the petition should be denied.
The Administrator correctly served the prior owner who filed an
answer to the complaint. Section 2527.3 of the Rent Stabilization
Code requires that service be made on the person named as the owner
in the last filed registration statement, as well as the party
specified as the owner on the complaint. Where a notice of change
in identity has been filed, then service must be made on the person
named as owner in such notice. Notice served in this manner shall
constitute notice to the person who is then the owner. The
registration filed with this Division as of April 1, 1988 indicates
D.& E. Eshaghian as the owner of the premises. The owner's
response to the Division's notice is dated June 20, 1988, which
according to the petitioner is after the date the petitioner
assumed ownership. Division records reveal no notice of the change
of ownerships prior to the filing of the registration of April 1,
1989.
The Administrator correctly set the effective date of the order as
of June 1, 1988, for the rent stabilized tenants. The effective
date is the first day of the month following service on the owner
of the tenant's complaint. The Administrator served the tenants'
complaint on the owner on May 20, 1988. In addition, rent
reductions based on service decreases are not allocated between a
current and a former owner. The current owner is liable for the
entire retroactive amount, notwithstanding it did not own the
building during all or part of the retroactive period.
Section 2523.4 of the Rent Stabilization Code provides in pertinent
part that a tenant may apply to the Division for a reduction of the
legal regulated rent to the level in effect prior to the most
recent guidelines adjustment, and the Division shall so reduce the
rent for the period for which it is found that the owner failed to
maintain required services. Required services are defined in
Section 2520.6 (r) and, in relevant part include repairs, decorat-
ing and maintenance, the furnishing of light, heat, hot and cold
water, elevator services, janitorial services and removal of
refuse.
A parallel provision applicable to the rent controlled tenants is
Section 2202.16 of the Rent and Eviction Regulations which
similarly provides in pertinent part, that if the landlord fails to
maintain services, the Administrator may order a decrease in the
maximum rent in an amount which the Administrator in his discretion
may determine.
In the instant case, the evidence of record, which includes the
results of the physical inspection conducted at the subject
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premises, reveals that the landlord failed to maintain services.
Accordingly, the Commissioner finds that the Rent Administrator's
determination that the landlord had failed to maintain services was
warranted and that the Administrator properly reduced the tenants'
rents.
THEREFORE, in accordance with the City Rent Law, the Rent and
Eviction Regulations, the Rent Stabilization Law and Code and the
Emergency Tenant Protection Act of 1974, it is
ORDERED, that this petition be, and the same hereby is, denied, and
that the Rent Administrator's order be, and the same hereby is,
affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
DEPUTY COMMISSIONER
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