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

          APPEAL OF                             DOCKET NO.: FB430110RO 
                                                RENT ADMINISTRATOR'S
                                                DOCKET NO.: DG430031B        
               Algin Management Co.,         


               On January 30, 1991, the above-named petitioner-owner timely 
          refiled a petition for administrative review of an order issued on 
          November 27, 1990, by the Rent Administrator, concerning the 
          housing accommodations known as 132 East 96th Street, New York, 
          N.Y., various apartments, wherein the Administrator determined that 
          the maximum legal rent for rent controlled apartment's should be 
          reduced by $8.00 per month based upon a diminution of services and 
          that the rent of rent stabilized apartments should be reduced by an 
          amount equal to the most recent quideline adjustment.  The Rent 
          Administrator's order was based upon an inspection held on March 5, 
          1990, which disclosed that although some service items had been 
          corrected; one service item had not.  The inspection of March 5, 
          1990, revealed that the fourth floor ceiling and roof landing 
          evidenced peeling paint and plaster.

               A notice was sent to the owner on August 3, 1989, with a copy 
          of the tenants' complaint and on August 25, 1989, the owner 
          answered alleging that all needed repairs will be made.

               The Commissioner has reviewed all of the evidence in the 
          record and has carefully considered that portion of the record 
          relevant to the issue raised by the administrative appeal.

               The issue herein is whether the Rent Administrator properly 
          reduced the rents of various rent controlled apartments in the 
          subject building.

               On appeal, the petitioner-owner asserted that at the time of 
          the DHCR's inspection, most repairs were corrected and that the one 
          condition which remained was an isolated occurrence and is 
          considered a part of ordinary maintenance which is minor in nature 


          and unworthy of a building-wide rent reduction.

               The petition was served on the tenants on February 27, 1991.

               After a careful consideration of the entire evidence of record 
          the Commissioner is of the opinion that the administrative appeal 
          should be denied.

               Section 2202.16 of the Rent and Eviction Regulations provides 
          that an owner's failure to maintain services may result in an order 
          of decrease in maximum rent, in an amount determined by the 
          discretion of the Rent Administrator.

               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 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 and essential services are defined in Section 
          2520.6(r) and Section 2200.3(b) to include repairs and maintenance.

               A review of the record before the Commissioner clearly shows 
          that the owner did not submit any evidence that the deficiency 
          noted in the inspection of March 5, 1990, had been corrected before 
          the issuance of the appealed order.

               The owner's claim on appeal that repairs were in progress is 
          not material insofar as it had ample opportunity to make all 
          repairs in a workmanlike manner, but it had failed to completely do 
          so before the issuance of the Rent Administrator's order.

               The Commissioner has also considered and rejects petitioner's 
          claims on appeal that the condition found below is a part of 
          ordinary maintenance, minor in nature and not a rent reducing item.  
          Peeling paint and plaster on the public hallway ceiling and landing 
          is a building-wide service deficiency worthy of the owner's 
          attention.  This deficiency should have been immediately corrected.  
          Clearly, the condition found was not a minor item that occurs 
          normally despite ongoing maintenance or which would be addressed as 
          part of periodic maintenance.

               The Commissioner finds that the Administrator properly based 
          his determination on the entire record, including the results of 
          the on-site physical inspection conducted on March 5, 1990, and 
          that pursuant to Section 2203.16 of the Rent and Eviction 
          Regulations and Section 2523.4(a) of the Rent Stabilization Code 
          the Administrator was authorized to reduce the rent upon 
          determining that the owner had failed to maintain services.
               Accordingly, the Commissioner finds that the owner has offered 
          insufficient reason to disturb the Rent Administrator's 



               THEREFORE, in accordance with the provisions of the Rent and 
          Eviction Regulations for New York City and the Rent Stabilization 
          Law and Code, 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.

               The owner may separately apply for a rent restoration.


                                                  Joseph A. D'Agosta         
                                                  Deputy Commissioner        



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