New York State Division of Housing and Community Renewal Office of Rent Administration Gertz Plaza, 92-31 Union Hall St. Jamaica, New York 11433 Public Information: (718)739-6400 POLICY STATEMENT 89-1 FAILURE TO MAINTAIN SERVICES; RENT REDUCTION/RESTORATION This policy statement is being issued to clarify DHCR's policies with respect to maintenance of services, for rent stabilized buildings or accommodations in New York City. RENT REDUCTION Section 26-514 of the Rent Stabilization Law, as amended by Chapter 403, Laws of 1983 (Omnibus Housing Act) provides, in pertinent part, as follows: In addition to any other remedy afforded by law, any tenant may apply to the state division of housing and community renewal, for a reduction in the rent to the level in effect prior to its most recent adjustment and for an order requiring services to be maintained as provided in this section, and the Commissioner shall so reduce the rent if it is found that the owner has failed to maintain such services... A substantially similar provision is contained in Section 2523.4 of the Rent Stabilization Code and it applies to all rent stabilized units including stabilized hotels. Essentially, a "required service" is one that was furnished on the base date or one required to be furnished by any state law or local law, ordinance or regulation applicable to the premises. These required services may include but are not limited to, repairs, decorating and maintenance, the furnishing of light, heat, hot and cold water, elevator services, janitorial services, and the removal of refuse. In addition to these required services, hotel stabilized tenants are entitled to receive maid service, linen service, furniture and furnishings, and staffed lobby, as part of their required services. Where a tenant files a complaint alleging the owner's failure to maintain services and where the owner disputes the allegation, an inspection of the premises is conducted to determine whether the owner has failed to maintain services. Where an inspector finds that required services nave not been maintained or are absent, DHCR will issue an order listing the specific services the owner failed to maintain, reducing the rent and directing the owner to restore the services. In addition, the owner will be ineligible for any rent increases for the affected unit or units until the date specified in a rent restoration order. The order will also include those items listed in the original complaint which were not found to exist by the inspector. However, if prior to an inspection the owner has restored the service(s) alleged in the tenant's complaint, there is generally no rent reduction ordered. Additionally, the rent will not be reduced upon a tenant complaint, or should be restored upon an owner's application, where there is a finding that a tenant failed to provide reasonable access. Whenever a DHCR inspector finds a diminution of service, the rent shall be reduced in accordance with the Code and law mentioned above. However there are limited instances where an item listed in a tenant's complaint is found to exist, but is only a deficiency that does not equal a reduction in services. Thus, a rent reduction would not be ordered if the alleged failure to maintain services involves a minor condition that either occurs normally despite on-going maintenance or recurs from time to time and is normally addressed as part of periodic maintenance. Examples of such conditions are as follows: 1. A burned-out or missing light bulb in a public hallway, where there are other light bulbs and the illumination has not dropped to a hazardous level. 2. A small crack in the wall occurring after a paint job. 3. A small paint chip in an enamel appliance. Such situations, standing alone, would not normally warrant a finding of a failure to maintain services. However, an Order may be issued giving the owner thirty days to remedy the condition. Such condition while initially not a failure to maintain services may later escalate into a failure to maintain services. That is, it becomes hazardous or the owner has failed to make the necessary repairs within a reasonable period of time after the DHCR Order. If the repair is not made within thirty days, the tenant may request a follow-up inspection. If the condition has not been corrected, the rent will be reduced retroactive to the first of the month following the date of service on the owner of the tenant's original complaint. If the original condition is not corrected, an appropriate remedy including a rent reduction may be ordered, either on a subsequent complaint, or as part of a compliance proceeding following the issuance of the Rent Administrator's Order. In such a situation the retroactive date for the reduction in rent, if ordered, would be the first of the month following the date of service on the owner of the tenant's original complaint. RENT RESTORATION Sections 2523.3 & 4 of the Rent Stabilization Code essentially provide that where DHCR determines that an owner has failed to maintain services, such owner shall not be entitled to a rent restoration until he or she has made an application and DHCR issues an Order restoring the rent. As rents are reduced when there is a failure to maintain required services, likewise, DHCR will issue Orders to restore those rents after required services as specified in the Rent Reduction Order have been restored. The rent restoration proceeding is initiated when an owner files an application affirming that the required services have been restored. If the tenant consents to the owner's statement, then the rent is restored. Otherwise, an inspection is made to determine if the required services have been restored. If the Order enumerated a number of conditions that required correction, such as faulty wiring, a leak, plaster and paint, all enumerated conditions must be corrected before the rent is restored. When the condition has not been corrected in a workmanlike manner, such as breaking a wall to repair a pipe without fully restoring the wall, including plastering and painting, the rent shall not be restored until all such work has been completed. Rents may be restored if the only remaining condition would not, on its own, constitute a diminution of services as defined in the "Rent Reduction" section of this memo above. Where DHCR issues an Order restoring rent the retroactive date would be the first of the month following the date of service on the tenant of the owner's application to restore rent. Elliot G. Sander Deputy Commissioner February 27, 1989 ------------------------------------------------------------ DHCR Policy Statements are **promulgated** (i.e., officially issued) by the New York State Division of Housing and Community Renewal (DHCR) and represent **official** policy of the agency. The agency is generally obligated to follow the policy contained in these and other documents or provide a rational for deviation; failure to follow the law, policy or practice may form the basis for an appeal. Electronic versions of the documents on TenantNet are for informational purposes only and there is no guarantee they will be accepted by any court (or even DHCR) as true copies of DHCR policy. The reader is advised to obtain true copies of these documents from DHCR. Also see DHCR Advisory Opinions, DHCR Operational Bulletins, the Rent Stabilization Code, the Rent Stabilization Law and various Rent Control Statutes. Every attempt has been made to conform to the original Policy Statements as issued by DHCR; TenantNet makes no representation the enclosed material is current or will be applied as written. The reader is advised that DHCR often fails to properly apply, interpret or enforce housing laws. Since housing laws are complex and often contradictory, it is recommended the reader obtain competent legal advice from a tenant attorney or counseling from a tenant association or community group. (rev. 3/13/96) DHCR documents are public documents; the electronic version of such documents have been developed by TenantNet and any added value, enhancements and/or proprietary features are copyright 1994, 1995 and 1996 by TenantNet. These documents may be freely distributed provided they remain intact as herein presented, including this and the top informational banner referencing TenantNet as the original provider. ------------------------------------------------------------ For more information or assistance. call the DHCR Rent Infoline at (718) 739-6400, or visit your Borough Rent Office. Queens Central Office 92-31 Union Hall St. 4th Fl. Jamaica, NY 11433 (718) 739-6400 Bronx One Fordham Plaza Bronx, NY 10458 (718) 563-5678 Brooklyn 250 Schermerhorn St. 3rd Floor Brooklyn, NY 11201 (718) 780-9246 Lower Manhattan 156 William Street 9th Floor NY, NY 10038 (212) 240-6011, 6012 South side of 110th St. and below Upper Manhattan 163 W. 125th St. 5th Floor NY, NY 10027 (212) 961-8930 North side of 110th St. and above Staten Island 350 St. Mark's Place Room 105 Staten island, NY 10301 (718) 816-0277 Nassau County District Rent Office 50 Clinton Street, 6th Floor Hempstead, NY 11550 (516) 481-9494 Westchester County District Rent Office 55 Church Street, 3rd Floor White Plains, NY 10601 (914) 948-4434 Rockland County District Rent Office 94-96 North Main St. Spring Valley, NY 10977 (914) 425-6575 Albany Regional Office 119 Washington Avenue Albany, NY 12210 (518) 432-0596 Buffalo Regional Office Ellicot Square Building 295 Main St., Room 438 Buffalo, NY 14203 (716) 856-1382 ------------------------------------------------------------