DOCKET NUMBER: BG 610213-RO & BG 610214-RO
                                 STATE OF NEW YORK
                           OFFICE OF RENT ADMINISTRATION
                                    GERTZ PLAZA
                              92-31 UNION HALL STREET
                              JAMAICA, NEW YORK 11433

     APPEAL OF                              DOCKET NOS.: BG 610213-RO &
                                         :               BG 610214-RO
      1796 HOLDING CORP.                    DRO DOCKET NOS.: AK 610624-S &
      BY DAVID GOLD                                          AK 610659-S
                           PETITIONER    : 

                               PETITION BG-610214-RO

     On July 20, 1987, the above-named petitioner filed two separate  petitions
     for Administrative Review, consolidated herein, against two orders  issued
     on June 19, 1987 and on July 3, 1987  by  the  Rent  Administrator,  92-31
     Union Hall Street, Jamaica, New York, concerning the housing accommodation 
     known as 1796 Grand Concourse, Apartment A4, Bronx, New York, wherein  the
     Administrator directed the restoration of service, further finding that  a
     rent reduction based thereon was warranted.

     The Commissioner has reviewed all of the evidence in the  record  and  has
     carefully considered that portion of  the  record  concerning  the  issues
     raised in the administrative appeal.

     This proceeding was commenced on November 14, 1986 by the  tenant  (Samuel
     Santiago) filing a complaint for a diminution of services under Docket No. 
     AK-610624-S, alleging the following conditions in the subject apartment:

               1) a defective light ("goes off often");
               2) defective walls in the bathroom;
               3) hole in the wall between the bathroom and kitchen;
               4) stove needs repair ("cannot use oven"); and
               5) apartment needs painting.

     A duplicate complaint was  separately  processed  by  the  Division  under
     Docket No. AK-610659-S.

     On December 23, 1986 and on January  6,  1987,  a  Division  staff  member
     conducted a physical inspection to investigate the tenant's  claims  under
     Docket No. AK 610624-S and reported in pertinent part that:

          1. the kitchen,bedrooms and apartment hallway are in need of 
             scraping and painting;

          2. bathroom wall around bathtub needs plaster and tiles;

          3. hole between the kitchen and bathroom was not completely 

          4. the oven door of the stove does not close properly; and

          DOCKET NUMBER: BG 610213-RO & BG 610214-RO
          5. kitchen wall was repaired in an unworkmanlike manner.

     On January 5, 1987, the owner responded to  the  tenant's  allegations  by
     advising, in pertinent part, that all of  the  subject  repairs  had  been
     completed; that plastering work had been performed; the the springs in the 
     tenant's oven door had been repaired; and that the apartment  was  in  the
     process of being painted.

     On January 20, 1987, the Division conducted  another  physical  inspection
     under Docket No. AK-610659-S.  The inspector reported that:

               1. the bathroom walls had been repaired;

               2. the hole between the kitchen and bathroom had been

               3. the oven door does not close properly; and

               4. apartment is in the process of being painted; 75% 

     In the order issued on June 19, 1987, under Docket  No.  AK-610659-S,  the
     Administrator reduced the tenant's rent to the level in  effect  prior  to
     the last rent guidelines increase based on the defective oven door and  on
     the fact that the apartment was not completely painted.

     In the order issued on July 3, 1987 under Docket No. AK 610624-S,  another
     rent reduction was ordered based on the five above-mentioned grounds cited 
     in the December 23, 1986 and January 6, 1987 inspection reports.

     In petition BG-610213-RO, against the  June  19,  1987  order,  the  owner
     states in pertinent part that  all  repairs  were  expeditiously  made  in
     December, 1986; that despite prior repair to the  stove,  on  January  27,
     1987, the owner went further and delivered a reconditioned  stove  to  the
     tenant's apartment (invoice submitted) and the tenant  has  indicated  his
     satisfaction with the new stove; that at the same time (January 27, 1987), 
     the owner caused the entire apartment to be  plastered  and  painted  once
     again, and the tenant had also  expressed  satisfaction  with  such  work.
     Based on this work, the owner questions  whether  the  inspector  actually
     visited the premises.  Lastly, the owner requests  consolidation  of  both

     In the petition under BG-610214-RO, against the July 3,  1987  order,  the
     owner reiterates the aforementioned arguments.

     The tenant did not submit an answer to either petition.

     The Commissioner is of the opinion that the  petition  under  BG-610213-RO
     should be denied, and that the  petition  under  BG  610214-RO  should  be

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

          DOCKET NUMBER: BG 610213-RO & BG 610214-RO
          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.

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

     Concerning the owner's request for consolidation of the  two  proceedings,
     given that the Division inadvertently processed duplicate complaints under 
     two separate docket numbers, the Commissioner finds that the June 19, 1987 
     order, which was based  on  a  more  current  inspection  of  the  subject
     premises, should, supersede the July 3, 1987 order, and that the  July  3,
     1987 order should be dismissed.

     Review of the record in the instant case reveals  that  the  Administrator
     based his June 19, 1987 determination on the entire record, including  the
     results of the January 20, 1987 inspection which disclosed that  the  oven
     door does not properly close,  and  that  the  apartment  is  in  need  of
     painting.   Therefore,  the  Commissioner  finds  that  the  Administrator
     correctly found that the owner had failed to  maintain  services  and  was
     mandated to reduce the tenant's rent.

     The owner's assertions  that  he  installed  a  reconditioned  stove,  and
     completed plastering and painting of the subject apartment on January  27,
     1987, were not  raised  in  the  proceeding  below,  despite  the  owner's
     opportunity to do so for over four months prior to  the  issuance  of  the
     order appealed from.  Such novel assertions may not be considered for  the
     first time in this appeal proceeding.

     As to the owner's assertion that the  tenant  had  expressed  satisfaction
     with the subject repairs, the record in the proceeding  under  Docket  No.
     AK-610624-S contradicts such assertion as  the  Division  records  reflect
     that the tenant filed a "Tenant Affirmation of  Non-Compliance"  with  the
     Division's Compliance Bureau on July 14, 1987, advising that the owner had 
     only completed half of the painting of the subject apartment.

     Based on the foregoing, the commissioner finds  that  the  Administrator's
     order under AK-610659-S was corrected and should be affirmed.

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

     ORDERED, that Petition BG-610224-RO be, and the same hereby  is,  granted,
     and that the Administrator's July 3, 1987 order be, and the same hereby is 
     revoked, and it is further

     ORDERED, that Petition BG-610213-RO be, and the same hereby is denied, and 
     that the Administrator's June 19, 1987 order be, and the same  hereby  is,

          DOCKET NUMBER: BG 610213-RO & BG 610214-RO

                                     ELLIOT SANDER
                                     Deputy Commissioner


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