BG 410157 RO
                                  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.: BG 410157 RO
                                                  
               DOLPHIN LEASING CORP.              DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET 
                                                  NO.: BC 520048 HW
                                  PETITIONER            
          ----------------------------------x


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
                                          
                    On July 3, 1987 the above named petitioner-owner filed a 
          Petition for Administrative Review against an order of the Rent 
          Administrator issued May 29, 1987.  The order concerned housing 
          accommodations known as Apt 7 located at 522 West 161st Street, New 
          York, N.Y.  The Administrator ordered a rent reduction for failure 
          to maintain adequate heat and hot water.

               The Commissioner has reviewed the record and carefully 
          considered that portion relevant to the issues raised by this 
          appeal.

               The tenant commenced this proceeding on May 9, 1987 by filing 
          an Application to Reduce Rent based upon Owner's Failure to 
          maintain Adequate Heat and/or Hot Water.  She stated that the owner 
          failed to provide adequate heat and hot water on 5 different 
          occasions in 1987.

               The owner was served with a copy of the application and 
          afforded an opportunity to respond. The owner failed to respond.
           
               The Administrator ordered a physical inspection of the subject 
          apartment.  The inspection was conducted on April 15, 1987 and 
          revealed that heat was not being provided and that the hot water 
          temperature was 118 degrees.

               The Administrator issued the order here under review on May 
          29, 1987 and ordered the maximum legal collectible rent reduced by 
          7 1/2% effective June 1, 1987 based on the inspector's report.

               On appeal the owner states, inter alia, that the tenants have 
          not been denied adequate heat or hot water.  

               The tenant filed a response on September 24, 1987 and stated 












          BG 410157 RO

          that the order here under review should be affirmed.
           
               After careful review of the evidence in the record, the 
          Commissioner is of the opinion that the petition should be denied.

               The Commissioner notes that the scope of review in an 
          administrative appeal is limited to facts or evidence presented 
          before the Rent Administrator unless it is shown that such facts or 
          evidence could not have been presented.  Since the owner did not 
          respond to the application the defense it raises at this time may 
          not be considered.  The Commissioner further notes that the owner's 
          statement of denial is wholly inadequate to rebut the report of the 
          DHCR inspector.

               Pursuant to 9 NYCRR 2202.16 if it is found that the owner 
          fails to maintain required services, the Rent Administrator may 
          order a decrease in the maximum rent in an amount determined by the 
          reasonable exercise of discretion.  The record in the instant case 
          reveals that the tenant complained about inadequate heat and hot 
          water and a physical inspection conducted on April 15, 1987 
          confirmed that these conditions indeed existed.  Accordingly, the 
          Commissioner finds that the Administrator properly determined that 
          the owner was not maintaining required services and for this reason 
          a rent 
          reduction was warranted.  The order here under review is affirmed.

               The Commissioner notes that the owner has filed for rent 
          restoration and said application was granted on April 17, 1989 (see 
          Docket No. 520060 OR).

               THEREFORE, pursuant to the Rent and Eviction Regulations it is 


               ORDERED, that this petition be, and the same hereby is, 
          denied, and that the Rent Administrator's order be, and the same 
          hereby is, affirmed.

          ISSUED:



                                                                             
                                             JOSEPH A. D'AGOSTA
                                             Acting Deputy Commissioner
    

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