Docket Number: AJ 410161-RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO. AJ 410161-RO 
                                                 DOCKET NO. 029315      


          On October 15, 1986, the above-named owner  filed  a  petition  for
          administrative review of an order issued on August 25,  1986  by  a
          Rent Administrator concerning the housing accommodations  known  as
          121 East 54th Street, New York, New York, Apartment 4-R.

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

          This proceeding  was  commenced  by  the  filing  of  the  tenant's
          objection to the 1984 registration alleging that the  owner  failed
          to provide certain services,  and  that  gas  and  electricity  are
          included in the rent, but were omitted from the registration.

          On June 5, 1986 the Administrator mailed a  copy  of  the  tenant's
          objection to Allied Bank International, which  was  listed  by  the
          tenant as the owner of the subject apartment.

          There  was  no  answer  to  the  tenant's  objection  to  the  1984

          In the order reviewed herein, the Administrator found that in  view
          of the owner's failure to respond, the factual allegations  of  the
          tenant's   objection   are   deemed   admitted.    Therefore,   the
          Administrator determined that the owner  provides  electricity  and
          cooking fuel which are to be included  in  the  rent.   As  to  the
          diminution of services,  the  Administrator  determined  that  this
          issue must be resolved by a filing of a complaint with the Division 
          of Housing and Community Renewal (D.H.C.R.).

          The  owner  and  its  successors  assert  in   the   petition   for
          administrative review and in supplemental submissions that:

               1)  the petition and supplemental submissions  were  filed
               timely because  the  petitioner  was  not  aware  of  this
               proceeding, nor given notice of this proceeding  prior  to
               the issuance of the Administrator's  order,  and  was  not
               given an opportunity to respond to the tenant's  objection
               to the 1984 apartment registration; and 

               2)  that all of the services which the tenant  had  stated

          Docket Number: AJ 410161-RO

               were not being provided  were  in  fact  being  adequately
               provided by the managing agent of the building.

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

          The Commissioner notes that the petitioner was the registered owner 
          of  the  subject  premises   prior   to   the   issuance   of   the
          Administrator's order, and  that  the  Administrator  inadvertently
          failed to  give  notice  of  this  proceeding  to  the  petitioner.
          Accordingly, the Commissioner finds that  the  petition  was  filed

          As the owner is being  given  an  opportunity  to  respond  to  the
          tenant's allegation, in its petition, the owner is not being denied 
          due process.  Furthermore, D.H.C.R. in a letter dated  December  6,
          1990, allowed the petitioner additional time to submit evidence and 
          advance its arguments.

          The Commissioner notes that the petitioner's successor in interest, 
          Ancla Investment, S.A., submitted an affirmation in support of  the
          petition for administrative review, dated January 23,  1991,  which
          does not dispute the District Rent Administrator's  finding  as  to
          what services are required.

          The  Commissioner  finds  that  neither  the  petitioner  nor   its
          successor  in  interest  raises  any  issues  which  would  warrant
          revoking the Administrator's order.  The  Commissioner  notes  that
          the owners' discussion of the  type  of  services  that  are  being
          provided is not relevant to this proceeding.  The Administrator did 
          not decide the issue of diminution of services, and  therefore,  it
          is not an issue to  be  determined  by  the  Commissioner  in  this
          proceeding.  The Commissioner notes that neither the petitioner nor 
          its successor disputes the Administrator's finding that electricity 
          and  cooking  fuel  are  required   services.    Accordingly,   the
          Commissioner is of  the  opinion  that  the  Administrator's  order
          should be affirmed.

          THEREFORE, in accordance with the Rent Stabilization Law and  Code,
          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,

                                          ELLIOT SANDER
                                          Deputy Commissioner

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