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

          APPEAL OF                                    DOCKET NO.: CK110192RO

               Markfair Properties, Inc.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: CH110181S


          On November 9, 1988, the above-named petitioner-owner timely 
          refiled a petition for administrative review (PAR) of an order 
          issued on October 7, 1988, by the Rent Administrator, concerning 
          the housing accommodation known as 139-12 34th Road, Flushing, 
          N.Y., Apt. A-3, 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 August 12, 1988, the tenant filed a complaint alleging that the 
          owner had failed to maintain various services due to the 
          consequences of a fire which occurred on August 9, 1988.

          The owner filed an answer to the complaint alleging that all 
          repairs were made.

          A DHCR inspection conducted on August 31, 1988 revealed that:


               1.   There were broken ceilings throughout apartment. 
               2.   Floors throughout apartment are warped.  (water and 
                    smoke damage to apartment).
               3.   Broken windows throughout apartment.

          The inspection also showed that the owner restored gas, hot and 
          cold water and electricity.

          On appeal, the petitioner-owner asserted, in pertinent part, that 
          there is no fire damage in the apartment, the DHCR erred because it 
          ignored all evidence submitted on its behalf and that the owner did 
          not receive a copy of the DHCR inspection report.

          The petition was served on the tenant on January 12, 1989.

          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 reduction of the legal regulated rent to the level in 
          effect prior to the most recent guidelines 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.

          Concerning the petitioner-owner's argument that the Administrator 
          failed to give it notice of the inspection or the results, the 
          Commissioner finds that due process does not require that the owner 
          be informed that inspections are to take place or that it be sent 
          copies of the reports with an opportunity to rectify the condition 
          or to respond.  The owner had adequate notice from the tenant's 
          complaint of conditions requiring its attention.

          The Commissioner has also considered and rejects the petitioner's 
          claim on appeal that the required repairs were made prior to the 
          issuance of the Rent Administrator's order.

          A copy of the tenant's complaint was mailed to the owner on August 
          18, 1988, and the Rent Administrator's order was issued on October 
          7, 1988.

          It is apparent that the owner had approximately six (6) weeks to 
          attend to the complained-of conditions, but had failed to do so 
          prior to the issuance of the Rent Administrator's order.


          The service deficiencies shown in the inspection report required 
          immediate owner attention, particularly because they were caused by 
          a fire which occurred on August 9, 1988.

          The Commissioner notes that all evidence submitted by the owner was 
          carefully considered by the Rent Administrator.  The Commissioner 
          finds, therefore, that the Administrator properly based his 
          determination on the entire record, including the results of the 
          on-site physical inspection conducted on August 31, 1988, 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.

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

          The Division's records reveal that the owner's rent restoration 
          application was granted on March 23, 1989 (Docket No. CJ110062OR) 
          and that the tenant has vacated the apartment.

          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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