CD220258RO
                                  STATE OF NEW YORK
                      DIVISION OF HOUSING AND COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                                  JAMAICA, NY 11433





          ------------------------------------x
          IN THE MATTER OF THE ADMINISTRATIVE          ADMINISTRATIVE REVIEW
          APPEAL OF                                    DOCKET NO.: CD220258RO

                    Salvatore Realty Corp.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: BE220215S

                                   PETITIONER
          ------------------------------------x

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

          On April 8, 1988, the above-named petitioner-owner filed a petition 
          for administrative review (PAR) of an order issued on March 31, 
          1988, by the Rent Administrator, concerning the housing 
          accommodation known as 636 Dahill Road, Brooklyn, N.Y., Apt.#6, 
          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 the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issues raised by the administrative appeal.

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

          On May 18, 1987, the tenant filed a complaint alleging that the 
          owner failed to maintain essential services in the subject 
          apartment.

          A DHCR inspection conducted on October 28, 1987, revealed that:

          1.   Kitchen window has a broken screen-lower sash does not stay 
               open.
          2.   Bedroom and bathroom ceilings and walls have peeling paint and 
               plaster, cracks and leaks bedroom walls cracked and have 
               peeling paint and plaster.

          On appeal, the petitioner-owner asserted, in pertinent part, that 
          it was never properly served with a copy of the tenant's complaint 












          CD220258RO

          and that the tenant provided the DHCR with an incorrect owner's 
          mailing address.

          The petition was served on the tenant on June 24, 1988.

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

          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. 

          A review of the record in the instant case reveals that the 
          petitioner owner was never served with a copy of the tenant's 
          complaint and was not given an opportunity to participate in the 
          proceeding before the Rent Administrator.

          The Notice and Transmittal of Tenant's Complaint, dated May 28, 
          1987, was incorrectly addressed, thus depriving the owner of its 
          right to due process.  Division records show that the tenant is no 
          longer an occupant of the subject apartment.

          Accordingly, the Commissioner finds that the Rent Administrator 
          erred by issuing the order of March 31, 1988.

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

          ORDERED, that this petition be, and the same hereby is, granted, 
          and the Administrator's order be, and the same hereby is, revoked.

                  


          ISSUED:






                                                                     
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  
    

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