FG 610326-RT

                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEALS OF                              DOCKET NO.:   
                                                  FG              610326-RT
               STEVE MLINARZ,                    RENT ADMINISTRATOR'S  
          c/o  CLASSIC REALTY & MGMT. CORP.,     DOCKET NO.: 
                                                 EH 610042-HW
                                   PETITIONER     PREMISES: 1419 Jesup Ave.
          ----------------------------------x     Bronx, New York


          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:

          FG 610326-RT

                    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-
                    quired services.

          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,
          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.


                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner

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