ADM. REVIEW DOCKET NO.: BD 510050 RT
                                    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.: BD  510050  RT
                          
                                              :
                                                 DRO ORDER NO.: ZAA-410420S 
               MERVYN             PHILLIPS             -             TENANT
           
                  
                                                  

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

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW


               On  April  6,  1987,  the  above-named  petitioner  filed  a
          Petition for Administrative Review against  an  order  issued  on
          March 30, 1987  by  the  Rent  Administrator,  92-31  Union  Hall
          Street, Jamaica, New York concerning  the  housing  accommodation
          known as 92 Morningside Avenue, Apartment 52, New York, New  York
          wherein the Rent Administrator determined that there had  been  a
          decrease in services and reduced the rent to the level in  effect
          prior to the last rent guideline increase.

               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.  

               The tenant commenced this proceeding on February  7,1986  by
          filing a complaint of decreased services.

               A copy of the complaint was sent to the owner (Ray Agoney).

               In response to the complaint,  the  owner  stated  that  the
          tenant refused to permit access to the subject apartment.

               Subsequently, a physical inspection  conducted  by  a  staff
          member of the DHCR confirmed  there  were  a  number  of  service
          deficiencies.  




               Based  on  the  foregoing  inspection,   the   Administrator
          determined that a decease in services had occurred and ordered  a
          reduction in the rent to the level in effect prior  to  the  last
          Rent Guidelines increase. 

               In the appeal, the tenant  seeks  clarification  on  how  to
          reduce the rent when the rent paid contains  no  Rent  Guidelines
          increase.






          ADM. REVIEW DOCKET NO.: BD 510050 RT

               In reply, the owner asserts that the tenant has never paid a 
          guidelines increase and that all complaints have been resolved.

               The Commissioner is of the opinion that this petition should 
          be granted.

               Section 25-514 of  the  Rent  Stabilization  Law  permits  a
          tenant to apply for a reduction in rent to the  level  in  effect
          prior to its  most  recent  adjustment  and  mandates  such  rent
          reduction where it is found that the owner has failed to maintain 
          required services.  Pursuant to Division policy, in the  case  of
          a first rent stabilized tenant, where the DHCR finds  a  decrease
          in  services,  the  rent  is  to  be  reduced  by  deducting  the
          applicable guidelines rate of increase  on  the  date  the  lease
          commenced.  

               The tenant herein commenced occupancy of a  previously  rent
          controlled apartment pursuant to  a  one  year  lease  commencing
          December 1, 1985 and terminating November  30,  1986.   The  rent
          reduction order was effective April 1, 1986, during the  term  of
          this first lease.  The applicable guidelines was Guidelines Order 
          number 17 which allowed for a 4% guidelines increase and  a  7.5%
          vacancy increase for a one year vacancy lease.  Accordingly,  the
          tenant's rent is to be reduced by deducting 11.5% from the  lease
          rent.  The  owner  is  barred  by  the  provisions  of  the  Rent
          Stabilization Law from collecting any further increases  in  rent
          until the services are restored and an order is issued  restoring
          the rent.  

               Review of the record reveals  that  while  this  matter  was
          being pursued by the Division's  Compliance  Bureau,  the  tenant
          withdrew his complaint and the owner was advised to apply  for  a
          restoration of the rent. 

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






               ORDERED, that this petition  be,  and  the  same  hereby  is
          granted, and the Rent Administrator's  order  be,  and  the  same
          hereby is, modified in accordance with this order and opinion.

          ISSUED:




                                                                        
                                          ELLIOT SANDER
                                          Deputy Commissioner










          ADM. REVIEW DOCKET NO.: BD 510050 RT
                                                    

    

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