BF 410299-RT
                                    STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                               DOCKET NO.:   
                                                  BF 410299-RT
                                                  RENT ADMINISTRATOR'S
                 MIKE SCOTT/JOSE CARO,            DOCKET NO.:               
                                                                                     LC 004331-S

                                                  PREMISES: 174 E. 85 St.
                                  PETITIONERS     Apt. C-1, New York, NY


           The above-named tenants filed a timely petition for administrative 
           review of an order issued concerning the housing accommodations 
           relating to the above described docket number.

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

           The tenants commenced the proceeding below by filing a complaint 
           asserting that the owner had failed to maintain certain services in 
           the subject apartment.  Attached to the tenants' complaint was a 
           copy of an order which stated that the apartment was expelled from 
           the Rent Stabilization Association and established the maximum 

           In its answer, the owner denied the allegations set forth in the 
           tenants' complaint or otherwise asserted that all required repairs 
           had been or would be completed.

           Thereafter an inspection of the subject apartment was conducted by 
           a Division of Housing and Community Renewal (DHCR) inspector who 
           confirmed the existence of defective conditions.

           The Rent Administrator directed restoration of these services and 
           further ordered a guideline reduction of the stabilization rent.

           In the tenants' petition for administrative review, the tenants 
           state, in substance that services are deficient, and that the rent 
           should be much lower.

          BF 410299-RT

           After careful consideration, the Commissioner is of the opinion 
           that the petition should be remanded to the Rent Administrator to 
           determine the apartment status and if rent controlled, assign a 
           dollar amount for each service deficiency listed in the Adminis- 
           trator's order.

           The evidence of record indicates that the subject apartment became 
           rent controlled pursuant to an expulsion from the Rent 
           Stabilization Association and if still rent controlled, the rent 
           reduction for the failure to provide essential services should, 
           pursuant to Section 2202.16 of the Rent and Eviction Regulations, 
           reflect the amount which the Administrator finds to be the reduc- 
           tion in the rental value because of the decrease in services.

           THEREFORE, in accordance with the provisions of the Chapter 403, 
           Laws of 1983 as amended by Chapter 102, Laws of 1984 and Opera- 
           tional Bulletin 84-1, it is,

           ORDERED, that this appeal be, and the same hereby is, granted to 
           the extent of remanding this proceeding to the Rent Administrator 
           for further processing in accordance with this Order and Opinion.  
           The order and determination of the Rent Administrator remains in 
           full force and effect until a new order is issued upon remand.  
           However, if the Rent Administrator's order retroactively adjusted 
           the rent and directed a refund of monies between the parties, so 
           much of the Rent Administrator's order as directed such refund is 
           hereby stayed until a new order is issued upon remand.


                                                 JOSEPH A. D'AGOSTA
                                                 Acting Deputy Commissioner




           TO   :    Renee Siboni                             
                     Rent Administrator/Tenant Services

           FROM :    Alice Ryen          
                     Director Administrative Review
                     Services Bureau

           DATE :    October 23, 1992

           RE.  :    Administrative Appeal Docket No.:  BF 410299-RT
                     D.R.O. Docket No.:  LC 004331-S  
                     Subject Premises:   174 East 85th St., Apt. C-1, N.Y., NY  

                      This proceeding is being remanded for the following 

                           To determine the apartment status 
                           and if rent controlled, equate the 
                           dollar amount for each service 
                           deficiency listed from the Admin- 
                           istrator's order.


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