DL530058RO
STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
GERTZ PLAZA
92-31 UNION HALL STREET
JAMAICA, NY 11433
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IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: DL530058RO
Stellar Management Co. Inc.,
RENT ADMINISTRATOR'S
DOCKET NO.: CL530040B
PETITIONER
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On December 15, 1989, the above-named petitioner-owner timely re-
filed a petition for administrative review (PAR) of an order issued
on October 5, 1989, by the Rent Administrator, concerning the
housing accommodations known as 1306 St. Nicholas Avenue, New York,
N.Y., various apartments, wherein the Administrator determined that
a reduction in rent was warranted based upon a reduction in
services.
The Rent Administrator also directed full restoration of services.
The Commissioner has reviewed all the evidence in the record and
has carefully considered that portion of the record relevant to the
issues raised by the administrative appeal.
The issue herein is whether the Rent Administrator properly reduced
the rent of various rent regulated apartments in the subject
building.
On December 19, 1988, the tenants filed a complaint alleging that
the owner failed to maintain services. On December 29, 1988, the
Division mailed a copy of the complaint to the owner. The record
does not contain any response to the complaint from the owner.
A DHCR inspection conducted on September 28, 1989, revealed that
although a number of services specified in the complaint were being
maintained, the entrance to the courtyard had been sealed off in
the lobby and, therefore, access could not be gained to ascertain
if the guard rails were missing or broken. The inspection further
showed that a box had been installed which sealed off the ground
floor windows.
DL530058RO
On appeal, the petitioner-owner asserted, in pertinent part, that
the guard rails in the courtyard were not broken or missing and
that the box placed against the ground floor windows was installed
to keep out undesirables. The petitioner further asserted that the
box was subsequently removed.
The petition was served on the tenants on March 26, 1990.
After a careful consideration of the entire evidence of record the
Commissioner is of the opinion that the administrative appeal
should be denied.
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 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
repairs and maintenance.
For rent controlled tenants, Section 2202.16 of the Rent and
Eviction regulations provides that a finding that an owner failed
to maintain essential services may result in an order of decrease
in maximum rent, in an amount determined by the Rent Administrator,
to reflect the decreased rental value because of the decrease in
services.
The inspection conducted on September 28, 1989, demonstrated that
the owner failed to maintain services in the public areas of the
building.
The Commissioner finds that the Administrator properly based the
determination on the entire record, including the results of the
on-site physical inspection conducted on September 28, 1989, and
that pursuant to Section 2523.4(a) of the Code and Section 2202.16
of the Rent and Eviction Regulations, a rent reduction was
warranted.
The Commissioner notes that although the owner was properly served
with a copy of the complaint, on December 29, 1988, the owner
failed to interpose any answer to the complaint.
The Commissioner finds, therefore, that the petitioner having
failed to raise any issue whatsoever while the proceeding was
pending before the Rent Administrator, it may not now raise issues
for the first time on administrative appeal.
DL530058RO
As regards the Rent Stabilized tenants, the automatic stay of the
retroactive rent abatement that resulted from the filing of this
petition is vacated upon issuance of this Order and Opinion.
The record shows that the owner's application for rent restoration
was denied by the Rent Administrator, on August 22, 1990, under
Docket No. DJ430155OR.
Upon a restoration of services the owner may separately re-apply
for a rent restoration.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code and the Rent and Eviction Regulations
for New York City, it is
ORDERED, that the owner's petition be, and the same hereby is,
denied, and the Rent Administrator's order be, and the same hereby
is, affirmed.
ISSUED:
LULA M. ANDERSON
Deputy Commissioner
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