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

          APPEAL OF                                    DOCKET NO.:
                    Clinton Court Investors,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.:


          On April 25, 1988, the above-named petitioner-owner filed a 
          petition for administrative review (PAR) of an order issued on 
          March 18, 1988, by the Rent Administrator, concerning the housing 
          accommodation known as 943 Fulton Street, Apt. 2F, Brooklyn, N.Y., 
          wherein the Administrator determined that a reduction in rent was 
          warranted based upon a reduction in services.  The Rent 
          Administrator reduced the rent of the subject rent controlled 
          apartment by $15.00 per month.

          The Rent Administrator also directed full restoration of services.

          The Commissioner has 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 issue herein is whether the Rent Administrator properly reduced 
          the rent of the subject apartment.

          On July 30, 1987, the tenant filed a complaint alleging that the 
          owner failed to maintain essential services.

          The owner filed an answer to the complaint alleging that all 
          repairs and services are in the process of being restored and that 
          it is a new owner of the premises diligently working to correct all 
          deficiencies.  In support of its claims, the owner submitted sundry 
          copies of repair contracts.

          A DHCR inspection conducted on December 31, 1987, revealed that the 
          following services were not being maintained:


               1.   Defective electrical outlet in the livingroom.

               2.   Peeling paint and plaster (cracks) on walls and 
                    ceiling in livingroom.

               3.   Missing screens throughout apartment (11 window screens).

          On appeal, the petitioner-owner asserted, in pertinent part, that 
          it is a new owner of the premises; that repairs were in progress at 
          the time of the inspection; that it was not informed of the date or 
          the results of the inspection and that the Rent Administrator 
          improperly failed to conduct a hearing.

          The petition was served on the tenant on July 8, 1988.

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

          For rent controlled tenants, Section 2202.16 of the Rent and 
          Eviction Regulations provides that a finding that an owner failed 
          to maintain essential services may result in an order of decrease 
          in maximum rent, in an amount determined by the discretion of the 
          Rent Administrator, to reflect the decreased rental value because 
          of the decrease in services.

          The Commissioner has considered and rejects the petitioner's 
          contention that its right of due process was violated by the Rent 
          Administrator's failure to notify it of the date and results of the 

          Due process does not require that an owner who has been served with 
          a complaint be given notice of the inspection or the actual 
          inspection results and the courts have upheld this procedure 
          (Empress Manor Apartments v. NYS DHCR, 538 N.Y.S 2d 49, 147 A.D. 2d 
          642, February 21, 1989).

          Additionally, error was not committed by the Rent Administrator, by 
          its failure to conduct a hearing because the scheduling of hearings 
          is a matter for the sole discretion of the Administrator.

          The owner's allegation that it is a new owner of the subject 
          building is not material because a new owner acquires title to the 
          premises subject to the rights and liabilities of its predecessor 
          in interest and therefore remains responsible for remedying any 
          decrease in services determined by the Administrator.

          The Commissioner notes that although the owner submitted various 
          repair contracts to support its position that some repairs were in 
          progress, the contracts submitted did not cover all those service 
          items specified in the complaint.


          The owner failed to adduce any credible evidence to show that those 
          service items specified in the appealed rent reduction order were 
          either completed or in progress prior to the issuance of the Rent 
          Administrator's order.

          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 31, 1987, and 
          that pursuant to Section 2202.16 of the Rent and Eviction 
          Regulations a rent reduction reflecting the reduced rental value of 
          the accommodation because of the decreased services was warranted.

          Accordingly, the Commissioner further finds that the owner has 
          offered insufficient reason to disturb the Rent Administrator's 

          Upon a restoration of services the owner may separately apply for 
          a rent restoration.

          THEREFORE, in accordance with the provisions of the Rent and 
          Eviction Regulations for New York, it is,

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


                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  


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