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

     ------------------------------------X 
     IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
     APPEAL OF                              DOCKET NO. AJ 110173-RO
                                         :  
                                            DISTRICT RENT ADMINISTRATOR'S
      THE GARDENS AT                        DOCKET NO. 85QS 0 00337-HH
      FOREST HILLS         PETITIONER    : 
     ------------------------------------X                             


           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


     On  October  14,  1986,  the  above-named  owner  filed  a  petition   for
     administrative review of an order  issued  on  September  10,  1986  by  a
     District Rent Administrator concerning various  housing  accommodation  in
     the premises known as 111-15 66th Avenue, Forest Hills, New York.

     The Commissioner has reviewed all the  evidence  in  the  record  and  has
     carefully considered that portion of the record  relevant  to  the  issues
     raised by the petition for review.

     The order of the District Rent Administrator, under review herein, reduced 
     the regulated rents based upon a finding that  the  owner  had  failed  to
     maintain proper heat and/or hot water service.

     In  its  petition  for  administrative  review,  the  owner  asserts,   in
     substance, that during the pendency of the proceeding before the  District
     Rent Administrator the premises were sold to  the  petitioner,  which  put
     the State of New York (not the rent agency in particular) on notice of the 
     transfer because the deed and other papers related to the transaction were 
     filed and appropriate taxes and fees were paid.  The petitioner  maintains
     that the rent agency was required to put the new owner (the petitioner) on 
     notice of the proceeding.  The petitioner further asserts that the failure 
     to maintain adequate heat and/or hot water existed under the  prior  owner
     and not under the petitioner's ownership and that the petitioner is taking 
     steps to improve the provision of heat and hot water.

     After careful consideration, the Commissioner is of the opinion  that  the
     petition for review should be denied.

     Putting the "State of New York" in notice of a transfer of  title  through
     the filing of deeds and the payment of transfer taxes is not sufficient to 
     put the rent agency on notice of a change of ownership for the purpose  of
     proceedings pending  before  the  agency.   In  the  instant  matter,  the
     petitioner does not assert when, if ever, if put the rent agency on notice 
     of  its  assuming  ownership,  either  by  letter  to  the  District  Rent
     Administrator or by filing a new registration statement.  Accordingly,  no
     violation of due process was occasioned by any failure to put the 







          DOCKET NUMBER: AJ 110173-RO
     petitioner on notice of the proceeding.  The  Commissioner  further  notes
     the  petitioner's  admission  that  heat  and/or  hot  water  service  was
     inadequate under its predecessor in interest, as  well  as  its  assertion
     that it is taking steps to  improve  the  service.   The  Commissioner  is
     accordingly  of  the  opinion  that  the  order  of  the   District   Rent
     Administrator should be affirmed without prejudice to any application  for
     restoration of rents as may have been filed based upon  a  restoration  of
     heat and hot water service.

     THEREFORE, in accordance with the Rent Stabilization Law and Code and  the
     Emergency Tenant Protection Act of 1974, it is

     ORDERED, that this petition be, and the same hereby is, denied,  and  that
     the District Rent Administrator's  order  be,  and  the  same  hereby  is,
     affirmed.

     ISSUED:











                                                                   
                                             ELLIOT SANDER
                                          Deputy Commissioner




                                                   
    

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