BF 610204 RO

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

          APPEAL OF                              DOCKET NO. BF 610204 RO
                                              :  DRO DOCKET NO. ZAG-610678-S
               ADBAR REALTY CO.                  

                                PETITIONER    : 


               On June 16, 1987, the above-named  petitioner-owner  filed  a
          Petition for Administrative Review against an order issued on  May
          12, 1987, by the Rent  Administrator,  92-31  Union  Hall  Street,
          Jamaica, New York, concerning the housing accommodations known  as
          20007 Newbold Avenue, Bronx, New York, Apartment No. B-36, wherein 
          the Rent Administrator determined that the  owner  had  failed  to
          maintain certain services and accordingly reduced the rent of  the
          subject apartment.

               The Administrative Appeal is being determined pursuant to the 
          provisions of Section 2523.4 of the Rent Stabilization Code.

               The issue herein is whether the  Rent  Administrator's  order
          was warranted.

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

               This proceeding was originally commenced  by  the  filing  in
          July 1986 of a tenant's statement of complaint in which the tenant 
          stated  in  substance  that  certain  services  were   not   being

               The owner was sent  a  copy  of  the  tenant's  complaint  on
          December 9, 1986 and afforded an opportunity to answer.  There  is
          no record  that  the  owner  filed  a  response  to  the  tenant's

               In  Order  Number  ZAG-610678-S,   the   Rent   Administrator
          determined that , based on a physical inspection, certain services 
          (enumerated in the order) were not being  maintained  and  reduced
          the rent to the level in effect prior to the most recent guideline 
          adjustment effective January 1, 1987.

               In this petition, the owner alleges  in  substance  that  the
          order should be revoked because the Rent Administrator failed to 

          BF 610204 RO

          give the owner notice of the results of any inspections  conducted
          at the subject apartment.

               The Commissioner is of the opinion that this petition  should
          be denied and the Rent Administrator's order modified.

               Section 2523.4 of the Rent  Stabilization  Code  provides  in
          pertinent part that a tenant may apply to the DHCR for a reduction 
          of the legal regulated rent to the level in effect  prior  to  the
          most recent guidelines adjustment, and the DHCR  shall  so  reduce
          the rent for the period for which it is found that the  owner  has
          failed to maintain required services.

               In the instant case, the record discloses that the owner  was
          served with a copy of the tenant's complaint on December  9,  1986
          and informed that a failure  to  respond  would  be  considered  a
          default and would result in a determination based  on  the  record
          currently before the DHCR.  The owner failed to submit  an  answer
          and the Rent  Administrator  was  correct  in  reducing  the  rent
          without a  physical  inspection  based  on  the  owner's  default.
          However the Rent Administrator's order is hereby modified to  show
          that the rent reduction is based on the owner's failure to  answer
          the tenant's complaint rather than upon a physical inspection.  In 
          all other respects, the Rent Administrator's order is affirmed.

               It  is  noted  that  the  owner  filed  a  rent   restoration
          application which was granted on June 30, 1988 under docket number 

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

               ORDERED, that this petition for administrative review be, and 
          the same hereby is, denied,  and,  that  the  order  of  the  Rent
          Administrator be, and the same hereby is, affirmed.


                                          ELLIOT SANDER
                                          Deputy Commissioner


          BF 610204 RO


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