BJ430390RO
                                  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. BJ430390RO
                                         :     
      Michael   S.    Stuart                          DISTRICT    RENT    OFFICE
                                              DOCKET            NO.ZAE-510288-RV
                                                            
                          PETITIONER     :    TENANT: Eugenia Cruz
     ------------------------------------X

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On October 7, 1987, the above named owner filed a Petition for Administrative 
     Review  against  an  order  issued  on  September  9,  1987,  by  the  Rent
     Administrator concerning the housing accommodations known as 556 West 126th 
     Street, New York, New York, Apartment No.3, wherein the Rent  Administrator
     determined that the owner failed to offer the complainant tenant a  vacancy
     lease.

     The Administrative Appeal is being determined pursuant to the provisions of 
     Sections 2522.5 and 2523.5 of the Rent Stabilization Code.

     The issue herein is whether the Rent Administrator's  finding that the owner 
     failed to offer a vacancy lease to the tenant was correct.

     The Commissioner had 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.

     The tenant originally commenced this proceeding by filing on May 27, 1986 a 
     Tenant's Complaint Of Owner's Failure To Renew Lease  And  /Or  Failure  To
     Furnish A Copy Of A Signed Lease wherein the tenant  stated  she  commenced
     occupancy of the subject apartment on February 28, 1986 and that she was not 
     offered a lease.

     In Order No. ZAE-510288-RV, the Rent Administrator's finding that the owner 
     failed to respond to the tenant's complaint, wherein the tenant alleged that 
     she was not given a lease, resulted in the Rent Administrator's deeming the 
     tenant's allegation admitted. The Rent Administrator directed the owner  to
     issue a vacancy lease to the tenant.

     In the petition, the owner states that,  among  other  things,  the  tenant
     refused to sign a lease prior to April 1, 1986.


     The Commissioner is of the opinion that the petition should be denied.













     BJ430390RO


     A notice dated June 23, 1986, together with a copy of the tenant's complaint 
     and answer forms, were sent to the owner wherein the owner was advised of the 
     tenant's complaint and requested to respond within 20 days from the date of 
     said notice.  The owner was cautioned therein that a failure to respond will 
     be deemed a default and may result in a determination based on the  present
     record before the Rent Administrator.

     A subsequent final notice dated July 15, 1987, together with a copy of  the
     tenant's complaint and answer forms, were sent to the owner wherein the owner 
     was advised that it failed to respond to the notice  dated  June  23,  1986
     (cited above) and that it was afforded a final opportunity to respond within 
     20 days of the date of the final notice.  The owner was  cautioned  therein
     that a failure to respond would result in  a  determination  based  on  the
     present record before the Rent Administrator.

     The record shows that the owner did not file with the D.H.C.R. the requisite 
     response in the proceeding before the Rent Administrator.

     The Commissioner finds, therefore, that  the  Rent  Administrator  properly
     deemed the tenant's allegation admitted in view of the owner's  failure  to
     interpose an answer to the tenant's complaint.

     The Commissioner notes that new evidence submitted in the owner's  petition
     cannot be considered for the first time on appeal.

     Accordingly, the Rent Administrator correctly determined that the  tenant's
     allegation that she had not been offered a lease be deemed admitted.  It is 
     noted that subsequent to the insuance of the Rent Administrator's order, the 
     owner offered a lease and the tenant signed such lease.

     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.

     ISSUED:


                                   ----------------------------------
                                   JOSEPH A. D'AGOSTA
                                   Deputy Commissioner