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

          APPEAL OF                             DOCKET NO.: CA430319RO  
                                                RENT ADMINISTRATOR'S
          Douglas Elliman - Gibbons & Ives,     DOCKET NO.: BA430058B       
               On January 22, 1988, the above-named petitioner-owner timely 
          refiled a petition for administrative review (PAR) of an order 
          issued on October 16, 1987, by the Rent Administrator, concerning 
          the housing accommodation known as 107 East 82nd Street, New York, 
          N.Y., various apartments wherein the Administrator determined that 
          the maximum legal rent for rent controlled apartments should be 
          reduced by $7.00 per month based upon a diminution of services.  
          The Rent Administrator's order was based upon an inspection held on 
          April 24, 1987.  The Rent Administrator also directed the 
          restoration of all services.

               The Rent stabilized tenants did not request a rent reduction 
          in this proceeding.

               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 rents of various rent controlled apartments in the 
          subject building.

               On appeal, the petitioner-owner contended that the Rent 
          Administrator erred by issuing the order which reduced the rents of 
          rent controlled tenants because all maintenance and repairs were 
          performed in a timely fashion.

               The petition was served on the tenants on March 10, 1988 and 
          on March 21, 1988, the tenants filed answers to the petition 
          stating that the conditions which were the subject of the Rent 
          Administrator's reduction order have not been corrected.

               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 inspection held on April 24, 1987 demonstrated that there 
          was peeling paint and plaster in the public areas and further that 
          the public areas were in need of cleaning.

               A review of the record before the Administrator clearly shows 
          that the owner did not submit any evidence that the deficiencies 
          noted on the inspector's report were completed in a workmanlike 
          manner at the time of the DHCR's inspection or at any time prior to 
          the issuance of the 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 April 24, 1987 and 
          that pursuant to Section 2202.16 of the Rent and Eviction 
          Regulations a rent reduction reflecting the reduced rental value of 
          the accomodation 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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