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

          APPEAL OF                               DOCKET NO.:
                                                  RENT ADMINISTRATOR'S
             EIGES & EIGES MANAGEMENT CO./        DOCKET NO.:
               ROSENBERG & ESTIS, P.C.            AL230069B

                                                  486 Brooklyn Ave.
                                   PETITIONER     Brooklyn, NY


          The above-named owner timely filed a petition for administrative 
          review of an order issued on October 9, 1987, concerning the 
          housing accommodations relating to the above-described docket 
          number wherein the Administrator reduced the rents based on a 
          finding of decreased services.

          The issue in this appeal is whether the Administrator's order was 

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

          Various tenants commenced this proceeding on December 24, 1986 by 
          filing a complaint of building-wide decreased services, alleging 
          numerous defective conditions in the subject building.

          On January 28, 1987, the Division sent to the owner a copy of the 
          tenants' complaint.

          In an answer filed on February 10, 1987, the owner denied the 
          allegations as set forth in the tenants' complaint and otherwise 
          asserted that services are being provided and maintained.


          Thereafter, a physical inspection of the subject building was 
          conducted by a Division staff member who confirmed the existence of 
          defective conditions.

          The Administrator directed the restoration of services and reduced 
          the rent of the stabilized tenants to the level in effect prior to 
          the last rent guideline increase effective February 1, 1987.  The 
          legal rent of the rent-controlled tenants was reduced effective on 
          the first rent payment date following the issuance date of the 
          order by $7.00 per month, itemized as follows:

             1.  Roach infestation in the incinerator room   -   $ 4.00

             2.  Public hallway walls and ceilings through-
                 out the building including the 6th floor
                 and bulkhead have discolored walls, and 
                 require repair and painting.                -     3.00

                                                                 $ 7.00

          In the petition for administrative review, the owner contends in 
          substance that "the owner was not appraised that an inspection 
          would be held and was not given an opportunity to rebut the 
          findings of the alleged inspection."

          In answer, various tenants allege in substance that numerous de- 
          fective conditions continue to exist.

          The Commissioner is of the opinion that the petition should be 

          The Administrator's determination was based upon an inspection 
          report which found decreased services in the building.  The 
          determination was in all respects proper and is hereby sustained.

          The owner's contention that he was not appraised of the inspection 
          results is without merit.  The tenants' complaint, which was 
          answered by the owner on February 10, 1987, is sufficient notice 
          (Empress Manor Apartments v. N.Y.S. DHCR, 538 N.Y.S. 2d 49, 147 
          A.D. 2d 642, February 21, 1989.  The inspection report is the work 
          product of a Division staff member who conducted on-site inspection 
          to determine questions of fact which arise after joinder of issue 
          in a proceeding alleging decreased services.  The inspector's work 
          product is an impartial report or finding - not a pleading or a 
          probative submission by a party to a proceeding which if not served 
          for response would be a fatal defect in denying due process (ARB - 

          BI 230194-RO

          This Order and Opinion is issued without prejudice to the owner's 
          rights as they may pertain to a de novo application to the Division 
          for a restoration of rent based upon the restoration of services.

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

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


                                                JOSEPH A. D'AGOSTA
                                                Deputy Commissioner



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