ADM. REVIEW DOCKET NO. ARL 12527 U

                                  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.:               
                                                 ARL 12527 U     
                                              :
                                                 DRO ORDER NO.:           
                                                 USC 001526 - B             
                168 REALTY, INC.      
                                             
                                                  

                              PETITIONER      : 
          ------------------------------------X                             

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
                       AND REVOKING RENT ADMINISTRATOR'S ORDER

               On August  12,  1986  the  above-named  petitioner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          July  16,  1986  by  the  Rent  Administrator,   Services   Unit,
          concerning the housing accommodations located at 700  West  172nd
          Street,  New  York,  N.Y.,  Various   Apartments,   wherein   the
          Administrator reduced the rents for all rent  controlled  tenants
          and all stabilized tenants who joined in the complaint based on a 
          finding that the owner had failed to mainta n  certain  building-
          wide services.

               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 appeal.  

               This proceeding was commenced on September  27,  1985,  when
          three tenants joined in filing a complaint alleging a decrease in 
          various building-wide services.

               On October  24,  1985,  the  owner  named  in  the  tenants'
          complaint responded that he was not  the  owner  of  the  subject
          building.






               An inspector visited the premises on May 28, 1986 and  found
          that various conditions were as  alleged  by  the  tenants.   The
          inspector also identified the name and address of the  entity  to
          whom rents are being paid. 

               The Administrator issued an order reducing  the  rent  by  a
          guideline for the two rent  stabilized  tenants  who  signed  the
          complaint and by $28.00 per month  for  the  16  rent  controlled






          ADM. REVIEW DOCKET NO. ARL 12527 U
          tenants in the building.

               In the petition for administrative review, the  owner  urges
          that the orders be revoked because of a lack of  due  process  in
          that it was never notified  of  the  complaint.   The  petitioner
          asserts that it promptly registered as the owner  after  purchase
          in  February  1986  but  received  no  notification   that   this
          proceeding was pending. 

               After careful consideration of the evidence of  record,  the
          Commissioner is of  the  opinion  that  the  petition  should  be
          granted.

               The Administrator was on  notice  when  the  answer  to  the
          complaint was received that the actual owner of the building  had
          not been served with the complaint.  There is  no  indication  in
          the record that the  complaint  was  reserved  on  the  owner  of
          record, even after the inspector ascertained the name and address 
          of the entity receiving rent payments.  In the absence of service 
          of the complaint on  the  owner,  there  was  no  notice  of  the
          existence of the conditions complained of and  a  rent  reduction
          based on a finding of the owner's failure  to  maintain  services
          cannot be sustained. 

               The tenants are advised to  file  a  new  complaint  if  the
          conditions that were the subject of this proceeding still 
          exist.

               Any arrears the tenants may owe as a result  of  this  order
          may be repaid to the owner in six equal monthly installments.

               THEREFORE, in accordance with the Rent Stabilization Law and 
          Code and the Rent and Eviction Regulations for New York City,  it
          is








               ORDERED, that this  petition  be  and  the  same  hereby  is
          granted and the Administrator's order be and the same  hereby  is
          revoked.

          ISSUED:




                                                                        
                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner




                                                    






          ADM. REVIEW DOCKET NO. ARL 12527 U

    

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