CF430107RO

                                  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.: CF430107RO
                                                  
          815 REALTY CO.                          RENT
                                                  ADMINISTRATOR'S DOCKET 
                                                  NO.: BI410002B
                                  PETITIONER            
          ----------------------------------x


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
                                          
               On June 29, 1988 the above named petitioner-owner filed a 
          Petition for Administrative Review against an order of the Rent 
          Administrator issued June 14, 1988. The order concerned various 
          housing accommodations located at 815 W. 181st Street, New York, 
          N.Y. The Administrator directed restoration of services and ordered 
          a reduction of the maximum legal rents.

               The Commissioner has reviewed the record and carefully 
          considered that portion relevant to the issues raised by this 
          appeal.

               This proceeding was commenced on September 28, 1987 when 42 of 
          the 68 tenants filed a Statement of Complaint of Decrease in 
          Building-Wide Services wherein they alleged, in sum, that the owner 
          was not maintaining certain required services.

               The owner was served with a copy of the complaint and afforded 
          an opportunity to respond. The owner did not file a response.
           
               The Administrator ordered a physical inspection of the subject 
          building.  The inspection was conducted on February 19, 1988 and 
          revealed the following:

                    1.   Vestibule ceiling has peeling paint and plaster,

                    2.   Fire escape is rusted,

                    3.   Elevator inspection certificate missing.

          All other services were found to have been maintained.

               The Administrator issued the order here under review on June 












          CF430107RO

          14, 1988.  With regard to rent controlled tenants, the 
          Administrator ordered a $7.00 per month rent reduction for the 
          conditions regarding the peeling paint and plaster on the vestibule 
          ceiling and the rusted fire escape.  The missing elevator 
          inspection certificate was not mentioned.  The Administrator did 
          not order a rent reduction for rent stabilized tenants but, 
          instead, directed restoration of services including the elevator 
          inspection certificate.

               On appeal the owner states, in substance, that it was never 
          notified that the complaint had been filed, that it had no 
          opportunity to defend itself or correct the conditions, that the 
          conditions were corrected prior to the issuance of the order here 
          under review, that the Administrator improperly ordered a rent 
          reduction for rent controlled tenants who did not sign the 
          complaint and that the Administrator issued a rent reduction for 
          rent controlled tenants while denying a rent reduction for rent 
          stabilized tenants based on the same inspection report. The 
          petition was served on the tenants on August 29, 1988.
           
               After careful review of the evidence in the record, the 
          Commissioner is of the opinion that the petition should be denied.

               The Commissioner notes that the instant complaint was served 
          on the owner at the proper address.  The owner failed to file a 
          response.  It is well settled that the scope of review in an 
          administrative appeal is limited to facts or evidence submitted to 
          the Rent Administrator unless it can be shown that such facts or 
          evidence could not have been presented.  The owner has failed to 
          excuse the default herein.  Accordingly, the owner may not now 
          present defenses to the merits of the proceeding.

               With regard to the owner's argument regarding the rent 
          controlled tenants who did not sign the complaint, the Commissioner 
          notes that pursuant to Section 2202.16 of the Rent and Eviction 
          Regulations, the Administrator is authorized to order a decrease in 
          the maximum rent based on a finding of failure to maintain 
          services.  The rent reduction is to be  in an amount which the 
          Administrator finds to be the reduction in value of the housing 
          accommodations because of the decrease in services.  Essential 
          services are defined in Section 2200.3 to include repairs, 
          decorating and maintenance.  In this proceeding the rent controlled 
          tenant of Apt. 2C signed this building-wide complaint.  Therefore, 
          the maximum rents of all the rent controlled tenants in the 
          building were properly reduced by $7.00 per month to reflect the 
          reduction in rental value to their apartments.
           
               With regard to the fact that the Administrator granted a rent 
          reduction for rent controlled tenants while ordering restoration of 
          services only for rent stabilized tenants, the Commissioner finds 
          that the Administrator correctly ordered a rent reduction for rent 
          controlled tenants based on the report of the inspector.  While a 






          CF430107RO

          rent reduction for rent stabilized tenants may also have been 
          warranted pursuant to Section 2523.4 of the Rent Stabilization 
          Code, the rent stabilized tenants have not filed administrative 
          appeals on this issue.  The owner has not been aggrieved by the 
          Administrator's failure to order a rent reduction for rent 
          stabilized tenants and, therefore, cannot be heard to complain that 
          the Administrator erred. The order here under review is affirmed.
               
               THEREFORE, pursuant to the Rent Stabilization Law and Code and 
          Rent and Eviction Regulations it is 

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

          ISSUED:



                                                                             
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner
                                   






    

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