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

          APPEAL OF                               DOCKET NO.:              
                   ZELIKS CORPORATION,
                                                  RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                   PETITIONER     BB420419S 


          The above-named petitioner-owner filed a timely petition for 
          administrative review (PAR) of an order issued concerning the 
          housing accommodation known as 126 Ludlow Street, Apartment 1-E, 
          New York, New York, wherein the Administrator determined that 
          certain services were not being provided or maintained, directed 
          restoration of such services, and ordered a rent reduction of 
          $10.00 per month effective on the first rent payment day following 
          the issue date of the Rent Administrator's order.

          The Commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issues raised by the petition.             

          The tenant commenced the proceeding below by filing a complaint on 
          February 18, 1987, asserting that the owner had failed to maintain 
          certain services in the subject apartment, including leaks in the 
          bathroom ceiling.

          In an answer dated April 16, 1987, the owner denied the allega- 
          tions set forth in the complaint or otherwise asserted that all 
          required repairs had been or will be completed.

          Thereafter, on July 15, 1987, an inspection of the subject apart- 
          ment was conducted by a Division of Housing and Community Renewal 
          (DHCR) inspector who confirmed the existence of the following 
          defective condition:

                         The walls and ceiling in the
                         bathroom need to be painted.


          The Rent Administrator directed restoration of these services and 
          further ordered a reduction of the maximum rent. 

          In its petition for administrative review, the owner states, in 
          substance, that the copy of the Order Reducing Maximum Rent it 
          received is illegible and must be reversed because it fails to 
          properly notify the landlord of the Agency's basis for its 
          decision, and that the rent reduction is not consistent with the 
          tenant's complaint.  The owner also states that the bathroom was 
          repiped and the walls and ceiling were repaired and that they had 
          not yet gotten to the painting project and should not be penalized 
          because of the timing of the inspection.

          The DHCR served a copy of the petition on the tenant on December 
          16, 1988. 

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

          Although it is true that a part of the order is illegible, it 
          clearly states that it is based on an inspection showing a defec- 
          tive item.

          Section 2202.16 of the Rent and Eviction Regulations provides, in 
          pertinent part, that the Administrator may order a decrease of the 
          maximum rent otherwise allowable based on a finding that there has 
          been a decrease in essential services required to be provided.  The 
          rent is to be decreased by that amount which the Administrator 
          finds to be the reduction in the rental value as a result of the 
          decrease in services.

          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 July 15, 1987; that pursuant 
          to Section 2202.16(a) of the Rent and Eviction Regulations the 
          Administrator acted properly in reducing the rent upon determining 
          that the owner had failed to maintain services.

          The Commissioner has also considered the owner's contention on 
          appeal that the rent reduction is not consistent with the tenant's 
          allegation.  The tenant specifically complained about the leak in 
          the bathroom ceiling and the finding by the Administrator that the 
          walls and ceiling in the bathroom needed to be painted confirms 
          that the leak damage had not been completely repaired.


          The Division's records reveal that the rent was restored by an 
          order issued on March 31, 1989 (Docket No. CH420143OR).

          THEREFORE, in accordance with the Rent and Eviction Regulations for 
          New York City, 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 


                                                JOSEPH A. D'AGOSTA
                                                Deputy Commissioner          


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