DI230172RO
                                  STATE OF NEW YORK
                      DIVISION OF HOUSING AND COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433



          ----------------------------------x
          IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
          APPEAL OF                               DOCKET NO.:   
                                                  DI230172RO                 
                 HEW-BURG REALTY CORP.,                
                                                  RENT ADMINISTRATOR'S      
                                                  DOCKET NO.: 
                                   PETITIONER     CL230033B 
          ----------------------------------x


              ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


            On September 14, 1989, the above-named petitioner-owner filed a 
            petition for administrative review of an order issued on August 28, 
            1989, by the Rent Administrator, concerning the housing accommoda- 
            tion known as 1779 81st Street, Brooklyn, New York, various tenants 
            wherein the Administrator determined that the rent for rent stabi- 
            lized apartments should be reduced to the level in effect prior to 
            the last rent guideline increase which commenced before the effec- 
            tive date of the order based upon a diminution of services and 
            further determined that the maximum legal rent for rent controlled 
            apartments should be reduced by $7.00 per month based upon a 
            diminution of services.  The Rent Administrator's order was based 
            upon an inspection held on August 7, 1989, which revealed that 
            there was peeling paint and plaster in the public hallways and that 
            the courtyard drain was clogged..

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

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

            On appeal, the petitioner-owner asserted that the tenant-repre- 
            sentative mistakenly stated an incorrect zip code in the owner's 
            mailing address and that consequently, it was not given a fair 
            opportunity to participate in the proceeding; that the only reason 
            it was made aware of the reduction order was because the tenants 
            called the matter to its attention and that all service conditions 
            were corrected.  














          DI230172RO



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

            Section 2202.16 of the Rent and Eviction Regulations provides that 
            an owner's failure 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.

            Essential services are defined by Section 2200.3 to include 
            repairs, decorating, and maintenance.

            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 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 re- 
            pairs, decorating, and maintenance.

            The Commissioner has considered the petitioner's argument that it 
            received inadequate notice of the proceedings below and rejects it. 

            On January 3, 1989, a Notice and Transmittal of Tenants' Complaint 
            was mailed to the owner and the record demonstrates that the owner 
            answered on January 22, 1989 and was a full participant below.

            Nearly seven months had elapsed from the time a copy of the ten- 
            ants' complaint was mailed to the owner to the time the Rent 
            Administrator's order was issued, on August 28, 1989.

            The record before the Commissioner clearly shows that the owner has 
            not submitted any evidence that the deficiencies noted on the 
            inspector's report were completed in a workmanlike manner at the 
            time of the DHCR inspection or at any time prior to the issuance of 
            the Administrator's order.

            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 August 7, 1989 and that 
            pursuant to Section 2523.4(a) of the Code and Section 2203.16 of 
            the Rent and Eviction Regulations the Administrator was mandated to 
            reduce the rent upon determining that the owner had failed to 
            maintain services.










          DI230172RO

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


            THEREFORE, in accordance with the provisions of the Rent and Evic- 
            tion Regulations for new York City and the Rent Stabilization Law 
            and Code, it is,

            ORDERED, that the owner's petition be, and the same hereby is, 
            denied, and that the Administrator's order be, and the same hereby 
            is, affirmed.

            This Order and Opinion is issued without prejudice to the owner's 
            right to file the appropriate application with the Division for 
            restoration of rent based upon a restoration of services, if the 
            facts so warrant.


            ISSUED:



                                                                         
                                               JOSEPH A. D'AGOSTA
                                               Deputy Commissioner












    

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