FF 510357-RO
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
APPEALS OF DOCKET NO.:
FF 510357-RO
M.S.C.T. REALTY CORP.
by: JACK FERRANTI, PRES. RENT ADMINISTRATOR'S
DOCKET NO.:
PETITIONER DI 530086-B
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
IN PART
On June 25, 1991, the above-named owner filed a petition for
administrative review of an order issued on April 24, 1991, by a
Rent Administrator concerning various housing accommodations in
the building known as 623 West 136th Street, New York, New York,
wherein rents were reduced due to a diminution of service. The
Commissioner deems this petition timely filed because the current
owner had not been served with a copy of the Rent Administrator's
order.
The Commissioner has reviewed all of the evidence in the record
and has carefully considered that portion relevant to the issues
raised by the petition for review.
On September 29, 1989 the stabilized tenant of Apartment 8 filed
an application for a rent reduction based on the owner's alleged
failure to maintain services alleging six items of building wide
services which were inadequate.
On December 1, 1989, one of the former owners interposed an
answer to the tenant's complaint wherein it denied the tenant's
allegations.
On July 2, 1990 a physical inspection of the subject building was
carried out by the Division of Housing and Community Renewal
(DHCR). The inspector, in his report, noted that the floors,
steps, and yard of the subject property were dirty.
On October 29, 1990 another physical inspection of the subject
building was carried out by the Division of Housing and
Community Renewal (DHCR). The inspector, in his report, noted
that the complained of conditions in the public areas were as
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alleged by the tenant and that there was an accumulation of
garbage under the steps in the yard.
On March 11, 1991 another physical inspection of the subject
building was carried out by the Division of Housing and
Community Renewal (DHCR). The inspector, in his report, noted
that the complained of condition in the public areas of the
building were as alleged by the tenant but that the yard had been
cleaned.
On April 24, 1991, the Rent Administrator issued the order here
under review, finding that a diminution of services had occurred
and reducing the complaining tenant's rent to the level in effect
prior to the last rent guideline increase which commenced before
the effective date of the rent reduction. The Rent Administrator
further ordered a six dollar ($6.00) reduction in the monthly
rentals of two rent controlled tenants in the building.
In its petition for administrative review the current owner
requests reversal of the Rent Administrator's order alleging
inter alia, that it purchased the building In Rem from the City
of New York on April 3, 1991 and that it was not able to obtain
any information regarding pending DHCR complaints. It is further
alleged that the City of New York was the owner of the building
at the time of the March 11, 1991 inspection and that since the
petitioner's ownership began on April 3, 1991 the building's
public areas have been kept clean. The current owner asserts
that a private owner should not be penalized for the City's
failure to comply with its own building maintenance standards.
After careful consideration the Commissioner is of the opinion
that this petition should be granted in part.
The Commissioner notes that the Rent Administrator reduced the
rents of two rent-controlled tenants, neither of whom were
signatories to the complaint. No rent controlled tenants signed
the complaint and the stabilized tenant who did sign the com-
plaint did not allege that any other tenants were joining in the
complaint. Accordingly, the owners of the building were not on
notice of the fact that the tenant's complaint concerned any
other tenants. This lack of notice to the owner of joinder of
additional parties was a denial of due process and the six dollar
reduction in the monthly rentals of the tenants of apartments 6
and 7 must be revoked.
In regard to the rent reduction ordered for the stabilized tenant
of apartment 8 the Commissioner finds that it should be affirmed.
The record indicates that prior to the March 11, 1991 inspection
cited by the owner, two previous inspections had corroborated the
tenant's allegations regarding the public areas. It is further
noted that the owner has not established the period of time when
the building was in rem but it is clear from the record that it
was privately owned when the complaint was filed and again when
the order was issued. Moreover, the conditions for which the
rent was reduced are in public areas and would have been readily
visible upon physical inspection of the premises by a prospective
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purchaser. Further as a prospective purchaser of an in rem
property, the petitioner could have secured authorization from
the City to obtain information regarding pending DHCR proceed-
ings.
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 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.
The Commissioner finds that the administrator properly based his
determination on the entire record; including the results of the
on-site physical inspections conducted on July 2 and October 29,
1990 and on March 11, 1991 and that pursuant to 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.
If there are arrears due to the owner as a result of the issuance
of this order and opinion, the tenants of apartments 6 and 7 may
pay off such arrears in six equal monthly installments beginning
with the first rent payment date after the issuance of this
order.
This Order and Opinion is issued without prejudice to the owner's
rights as they may pertain to an application to the Division for
a restoration of rent based upon the restoration of services.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, and the Rent & Eviction Regulations for New York City,
it is,
ORDERED, that this petition be, and the same hereby is, granted
in part and that the Rent Administrator's order be, and the same
hereby is, modified to the extent f revoking the rent reduc-
tions which were ordered for apartments 6 and 7. In all other
respects the Rent Administrator's order is affirmed.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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