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

          APPEAL OF                                 DOCKET NO.: CB110189RO

                HEN YAM LEE CORP.,                  RENT ADMINISTRATOR'S
                                                    DOCKET NO.: BF110677S


          On February 26, 1988, the above-named petitioner-owner filed a 
          petition for administrative review (PAR) of an order issued on 
          January 29, 1988, by the Rent Administrator, concerning the housing 
          accommodation known as 36-07 Steinway Street, Long Island City, New 
          York, Apt. 3-C, wherein the Administrator determined that a 
          reduction in rent was warranted based upon a reduction in services.

          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 Apartment 3-C based upon a reduction in services.

          On June 18, 1987 the tenant filed a complaint alleging that the 
          owner was not providing essential services.

          The owner filed an answer to the complaint on September 2, 1987, 
          alleging that some repairs noted in the tenant's complaint have 
          been corrected and that the others will be addressed shortly.

          A DHCR inspection conducted on November 23, 1987 revealed that:

                    1.  All windows in the entire apartment are defective; 
                    they have inoperative locks, defective sashes and are 
                    also loose.                                              
                    2. Evidence of exposed electrical wires, hazardous 


                    3.  Walls in 1st bedroom and 2nd bedroom are uneven and 

                    4.  Ceiling in living room is peeling paint and plaster.

          On appeal, the petitioner-owner asserted, in pertinent part, that 
          it did not receive a copy of the tenant's complaint until late in 
          the proceedings but that when it eventually received notice, it 
          made all necessary repairs.

          The petition was served on the tenant on March 28, 1988 and on 
          April 10, 1988, the tenant filed an answer to the petition stating 
          that most repairs were made in an unworkmanlike manner.

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

          Pursuant to Section 2523. 4 (a) of the Rent Stabilization Code, a 
          tenant may apply to the Division of Housing and Community Renewal 
          (DHCR) for a reduction of the legal regulated rent to the level in 
          effect prior to the most recent guideline 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 maintenance.

          The record shows that a properly addressed Notice of Transmittal of 
          Tenant's Complaint was mailed to the owner on August 19, 1987 and 
          that the owner filed an answer on September 2, 1987.

          The Commissioner finds, therefore, that the answer filed below 
          belies the owner's contention on appeal that it failed to receive 
          notice of the proceedings and further finds that the owner was a 
          full participant in the proceedings before the Rent Administrator.

          The Commissioner also finds that the Administrator properly based 
          his determination on the entire record, including the results of 
          the on-site physical inspection conducted on November 23, 1987, and 
          that pursuant to Section 2523.4 (a) of the Code, the Administrator 
          was mandated to reduce the rent upon determining that the owner had 
          failed to maintain services.

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

          The Commissioner notes that the owner's applications for rent 
          restoration have all been denied.  The owner may refile if the 


          facts so warrant.

          The automatic stay of the retroactive rent abatement that resulted 
          by the filing of this petition is vacated upon issuance of this 
          order and opinion.

          THEREFORE, in accordance with the provisions of 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, 


                                                        JOSEPH A. D'AGOSTA
                                                        Deputy Commissioner


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