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

          APPEAL OF                              DOCKET NO.                
                                                 BG - 130234 RO   
                                                 D.R.O. DOCKET NO.           
            ROTHSCHILD PROPERTIES                AH - 130042 - B

                              PETITIONER      : 


               On July 16, 1987, the above-named petitioner-owner filed an 
          Administrative Appeal against orders issued on June 26, 1987, by 
          the District Rent Administrator, 92-31 Union Hall Street, Jamaica, 
          New York, concerning the housing accommodations known as 148-15 
          Lowe Court (a/k/a 90th Road), Jamaica, New York, various 

               The issue herein is whether the District Rent Administrator 
          properly reduced the rent of the subject apartments based upon a 
          decrease in services.

               The District Rent Administrator's order, appealed herein, 
          found that a diminution of services had occurred and reduced the 
          rent of the various tenants to the level in effect prior to the 
          last rent guideline increase, which commenced before the effective 
          date of the rent reduction.  The aforesaid orders were based upon 
          an inspection which revealed:

               1. Roach and mice infestation.
               2. Paint peeling in bulkhead due to leak damage.
               3. Dirty lobby and corridors.
               On appeal, the petitioner-owner alleged, in substance, that 
          the subject proceeding was withdrawn by the originating tenant on 
          April 14, 1987, pursuant to a Civil Court stipulation; that there 
          is no inspection date shown on the District Rent Administrator's 

          ADM. APPEAL DOCKET NO. BG - 130234 RO

          order; that the tenants' roach and mice infestation complaint is 
          without basis; that peeling paint at the bulkhead was not a part of 
          the original complaint and that dirty lobby and corridors are 
          essentially a tenant-induced condition.   

               After a careful consideration of the entire evidence of record 
          the Commissioner is of the opinion that the administrative appeal 
          should be granted in part.

               The file reveals that the tenant of apartment 2-H, N. Persaud, 
          signed a stipulation agreement with the owner, on April 14, 1987, 
          in a proceeding in Civil court, County of Queens under Docket No. 
          59425/87 and that the tenant was represented by the Queens Legal 
          Services Corporation. 

               The said stipulation provided for the discontinuance of all 
          applications or complaints pending with the DHCR, including AH- 
          130042-B, the proceeding below.

               Evidence submitted by the petitioner, on appeal, shows that 
          the District Rent Administrator was given timely notice of the 
          discontinuance well before the issuance of the District Rent 
          Administrator's order, on June 26, 1987.

               The Commissioner notes that the file is absent any showing 
          that the tenant of apartment 2-H was acting in a representative 
          capacity.  Therefore, the aforesaid stipulation of discontinuance 
          binds only tenant N. Persaud.   

               Accordingly, upon the facts found herein, the Commissioner 
          finds that the District Rent Administrator's order, pertaining to 
          the tenant of apartment 2-H, issued on June 26, 1987, should be 

               As to the other complaining tenants, the Commissioner finds 
          that the administrator properly based his determination on the 
          entire record, including the results of the on-site physical 
          inspection conducted on December 2, 1986, and that pursuant to 
          Section 2523.4(a) of the Code, the administrator was mandated to 
          reduce the rent upon determining that the owner had failed to 
          maintain services. 

          Pursuant to section 2523.4(a) of the Rent Stabilization Code, 

               A tenant may apply to the DHCR for a reduction of the
               legal regulated rent to the level in effect prior to 

          ADM. APPEAL DOCKET NO. BG - 130234 RO

               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 

          Required services are defined in section 2520.6(r) to include 
          repairs and maintenance.

               Prior administrative determinations have consistently held 
          that due process does not require that the parties be notified of 
          the inspections carried out by this Division.

               While the owner may indeed provide exterminator service as it 
          alleges, nonetheless, the efficacy of said service was found to be 
          deficient as evinced by the inspector's findings.  The deficient 
          exterminator service, therefore, constitutes a diminution of 

               Furthermore, the owner's contention, on appeal, that the 
          tenants caused the dirty lobby and corridors is rejected.  The fact 
          that the conditions in question may have been caused by the tenants 
          does not relieve the owner of its responsibility to maintain the 
          public building areas.

               Also, an examination of the tenants' building-wide complaint 
          clearly shows that they complained of water-leaks throughout the 
          building and the Commissioner finds, therefore, that the 
          petitioner's claim that the tenants had failed to specify a 
          complaint of peeling paint on the bulkhead must fail. 

               As it pertains to apartment 2-H, this Order and Opinion is 
          issued without prejudice to the owner's right to file the 
          appropriate application with the Division for a restoration of rent 
          based upon the restoration of services, if the facts so warrant.

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

               ORDERED, that this petition be, and the same hereby is, 
          granted in part, and the Administrator's order pertaining to 
          apartment 2-H be, and the same hereby is revoked and that the 
          Administrator's orders pertaining to all other complaining tenants 

          ADM. APPEAL DOCKET NO. BG - 130234 RO

          be, and the same hereby are, affirmed.


                                          JOSEPH A. D'AGOSTA
                                          Acting Deputy Commissioner



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