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
APPEALS OF DOCKET NO.:
STEVE MLINARZ, RENT ADMINISTRATOR'S
c/o CLASSIC REALTY & MGMT. CORP., DOCKET NO.:
PETITIONER PREMISES: 1419 Jesup Ave.
----------------------------------x Bronx, New York
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
The above-named owner filed a timely petition for administrative
review of an order concerning the above-referenced premises
wherein the rents of the regulated tenants were reduced due to a
diminution of services.
The tenants filed an application for rent reductions based on the
owner's alleged failure to maintain services alleging, inter
alia, that hot water in the building was inadequate.
The owner was served with a copy of the tenants' complaint on
September 5, 1990, October 2, 1990, and on October 16,1990, and
failed to interpose an answer thereto.
On October 26, 1990, a physical inspection of the subject prem-
ises was carried out by the Division of Housing and Community
Renewal (DHCR). The inspector reported that certain complained of
conditions were as alleged by the tenants.
On June 19, 1991, the Rent Administrator issued the order here
under review, finding that a diminution of serviced had occurred
and reducing the tenants' rents to the levels in effect prior to
the last rent guideline increases which commenced before the
effective date of the rent reductions. The rent controll d ten-
ant's monthly rental was reduced by seven and one-half per cent.
In his petition the owner requests reversal of the Rent Adminis-
trator's order and alleges that a new owner took over the
building on July 1, 1991 and that hot water is being adequately
The Commissioner has carefully considered that portion of the
record relevant to the issues raised by the petition and is of
the opinion that this petition should be denied.
Section 2523.4 (a) of the Rent Stabilization Code provides:
A tenant may apply to the DHCR for a reduc-
tion 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 re-
Required services are defined in Section 2520.6(r) to include re
pairs and maintenance, including heat and hot water.
The Commissioner finds that the Rent Administrator properly based
the determination on the entire record; including the results of
the on - site physical inspection conducted on October 26, 1990
and that pursuant to Section 2523.4(a) of the Code, the Rent
Administrator was mandated to reduce the rents upon determining
that the owner had failed to maintain services.
Section 2202.16 of the Rent and Eviction Regulations provides
that if the owner fails to maintain services, the Rent Adminis-
trator may order a decrease in the maximum rent in an amount
which the Rent Administrator, in his discretion, may determine.
The record in the instant case reveals that the tenants com-
plained about certain conditions at the premises and a physical
inspection of the premises confirmed that these conditions indeed
existed. The Commissioner further notes that a new owner takes
title subject to the duties and liabilities of its predecessor in
Accordingly, the Commissioner finds that the Rent Administrator
properly determined that the owner had not corrected conditions
and for this reason rent reductions are warranted.
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 rents based upon the restoration of services.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, and the Rent and Evictions Regulations for New York City,
ORDERED, that this petition be, and the same hereby is, denied
and that the Rent Administrator's order be, and the same hereby
JOSEPH A. D'AGOSTA