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

          APPEAL OF                                    DOCKET NO.: CI110141RO

                    Concerned Management Corp.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: BI110495S



          On September 9, 1988, the above-named petitioner-owner filed a 
          petition for administrative review (PAR) of an order issued on 
          August 8, 1988, by the Rent Administrator, concerning the housing 
          accommodation known as 61-51 B Springfield Boulevard, Bayside, 
          N.Y., Apartment B, 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 Apartment B based upon a reduction in services.

          On September 10, 1987, the tenant filed a complaint alleging that 
          the owner was not providing required services.

          A DHCR inspection conducted on March 30, 1988, revealed that:

          1.   Refrigerator is defective.  The freezer temperature was 14@ 
               and could not go lower.  The compartment is also smashed.

          2.   Bathtub is rotten and discolored.

          The Administrator's order, appealed herein, was based on said 
          On appeal, the petitioner-owner asserted, in pertinent part, that 
          it did not receive a copy of the complaint and, therefore, could 


          not answer the tenant's allegations.

          The petition was served on the tenant on October 24, 1988, and on 
          November 6, 1988, the tenant filed an answer to the petition 
          stating that the repairs were not made insofar as the replacement 
          refrigerator provided by the owner did not work.

          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 October 23, 1987.  
          Such notice was not returned to the Division by the United States 
          Post Office as undeliverable and it was proper to presume that the 
          notice was duly delivered in the normal course of business.

          The Commissioner finds, therefore, that the petitioner having 
          failed to raise any issue whatsoever while the proceeding was 
          pending before the Rent Administrator, it may not now raise issues 
          for the first time on administrative appeal.

          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 March 30, 1988, and 
          that pursuant to Section 2523.4 (a) of the Code, the Administrator 
          was authorized 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 owner may file for restoration of the rent if the facts so 
          warrant.  The owner will not be entitled to any increase in rent 
          until an application for rent restoration is filed and the 
          application is granted by the Rent Administrator.

          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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