DF 230388 RO; DF 210249 RT
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEALS OF                              DOCKET NO.: 
                                                  DF 230388 RO
                                                  DF 210249 RT

          60-17 REALTY CORP., OWNER               RENT
                                                  NO.: CH 230098 B

               The above named petitioner-owner and petitioner-tenant filed 
          timely Petitions for Administrative Review against an order of the 
          Rent Administrator issued May 31, 1989. The order concerned various 
          housing accommodations located at 60 East 17th Street, Brooklyn, 
          N.Y.  The Administrator ordered a building-wide rent reduction for 
          failure to maintain required services.  

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

               This proceeding was commenced on August 30, 1988 when 56 of 
          the 89 tenants of the building joined in the filing of a Statement 
          of Complaint of Decrease in Building-Wide Services wherein they 
          alleged the following services deficiencies:

                    1.   Building directory in need of updating to aid 
                         visitors and facilitate mail delivery,

                    2.   Peeling paint and plaster,

                    3.   Missing floor tiles,

                    4.   Lobby drapes need to be replaced,

                    5.   Defective intercoms,

                    6.   Defective lobby door lock,

          DF 230388 RO; DF 210249 RT

                    7.   Building grounds not properly maintained,

                    8.   Apartment doors do not slam shut properly; 
                         defective peepholes,

                    9.   Extermination needed,

                   10.   Defective garage lighting,

                   11.   Broken water tank,

                   12.   Floors in need of waxing or buffing,

                   13.   Inadequate heat,

                   14.   Defective backyard fence.

               A copy of the complaint was served on the owner at P.O. Box 
          30042, Brooklyn, N.Y.  The owner failed to file a response.
               The Administrator ordered a physical inspection of the subject 
          building.  The inspection was conducted on April 11, 1989 and 
          revealed the following:

                    1.   Roach infestation,

                    2.   Intercom system requires audio adjustment,

                    3.   Sixth floor laundry room ceiling and ceiling near 
                         apartment 6N are leak damaged; north bulkhead plus 
                         fourth floor ceiling are cracked and bulging; north 
                         fifth floor by exit door is cracked; south sixth 
                         floor ceiling by elevator is crumbling,

                    4.   North wing fifth floor laundry room has missing 
                         floor tiles,

                    5.   South backyard fence requires repairs.

          The following services were found to have been maintained:

                    1.   Lobby door lock adequate,

                    2.   Lobby drapes adequate,

                    3.   Adequate garage lighting,

                    4.   Interior public areas have been painted and are 

          DF 230388 RO; DF 210249 RT


                    5.   Water tank pump operative,

                    6.   Directories have been updated.

               The Administrator issued the order here under review on May 
          31, 1989 and ordered a rent reduction of an amount equal to the 
          most recent guideline adjustment based on the report of the 
          inspector.  The rent reduction was ordered effective October 1, 

               The owner and one tenant have filed appeals from the 
          Administrator's order.  In her petition, the tenant states that the 
          order here under review should be modified to state that the 
          hallways of the upper floor are unpainted and dirty.

               The owner filed a petition for administrative review and 
          stated that it had never been served with a copy of the complaint 
          nor a copy of the order here under review.  The owner claims that 
          it filed a report of change of identity of landlord with the DHCR 
          on January 28, 1987 and that the Administrator had notice of the 
          identity of the landlord as well as the proper mailing address.

               Addressing the substantive findings of the order here under 
          review, the owner states that there is no roach infestation, that 
          monthly extermination services are provided to all tenants, that 
          the building is cleaned adequately,  and that the tenants never 
          notified the owner about leaks nor problems with the intercom.  
          Attached to the petition is a copy of the Report of Change in 
          Identity of Landlord which was allegedly filed with DHCR.  Also 
          attached are copies of a services contract with an extermination 
          company as well as a sworn affidavit by the building 
          superintendent, attesting to the fact that the building is being 
          cleaned and maintained.

               Various tenants filed responses to the owner's petition.  All 
          but one tenant state that the owner was served at the proper 
          address and that the order here under review was issued correctly 
          and should be affirmed.
               After careful review of the evidence in the record, the 
          Commissioner is of the opinion that the tenant's petition should be 
          denied, but that the owner's petition should be granted, that the 
          order here under review should be revoked and this proceeding 
          should be remanded to the Administrator.

               Pursuant to Section 2527.3 of the Rent Stabilization Code the 
          DHCR must serve all applications for rent reduction on the owner at 
          the address contained in agency records.  In this proceeding it is 
          apparent that the complaint was neither served on the registered 
          owner nor on the party whose name and address is contained in a 

          DF 230388 RO; DF 210249 RT

          Notice of Change of Owner Identity which had been filed with the 
          agency.  The Commissioner has examined the building registration 
          statement for 1988 which was filed by the owner with the DHCR.  
          This statement is the basis for obtaining the address of the owner 
          in order to make service of all documents.  The Commissioner finds 
          that the address of the owner as it appears on the statement is 
          P.O. Box 300462, Brooklyn, N.Y. 11230.  The complaint and order 
          were served on the owner at P.O. Box 30042, Brooklyn, N.Y.  The 
          error in making proper service caused the owner to be denied due 
          process of law in not receiving the proper notice of the tenant's 
          complaints.  Therefore, the owner's petition for administrative 
          review is granted and the order here under review is revoked as 
          being procedurally defective.  This proceeding must be remanded to 
          the Rent Administrator so that proper service can be made on the 
          registered owner. 

               With regard to the allegations of the tenant in her petition, 
          the Commissioner notes that these allegations are at variance with 
          the report of the DHCR inspector.  It is settled law that this 
          report is entitled to more probative weight than the unsupported 
          allegations of a party to the proceeding.  The tenant's petition, 
          is therefore, denied.
               If the current owner has already complied with the 
          Administrator's order and arrears are due and owing by reason of 
          the Commissioner's determination herein, the tenants may be 
          permitted to pay back said arrears in twenty four (24) equal 
          monthly installments.  Should any tenant vacate an apartment or 
          have previously vacated, any arrears are due and payable 

               THEREFORE, pursuant to the Rent Stabilization Law and Code it 

               ORDERED, that the tenant's petition be, and the same hereby 
          is, denied, and that the owner's petition be, and the same hereby 
          is, granted, and that the Rent Administrator's order be, and the 
          same hereby is, revoked, and it is further,

               ORDERED, that this proceeding be, and the same hereby is, 
          remanded to the Rent Administrator for further processing in 
          accordance with this order and opinion.


                                             JOSEPH A. D'AGOSTA
                                             Acting Deputy Commissioner

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