DI 430123 RO
                                  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.: DI 430123 RO

               Manhattan Avenue Apartments,    DISTRICT RENT ADMINISTRATOR
                                               DOCKET NO.: CL 420010-B
                                               PREMISES: 78 Manhattan Ave.,
                                                         New York, N.Y.
                                   PETITIONER
          -----------------------------------X

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

          The above-named owner filed a timely petition for  administrative
          review of an order issued concerning the  housing  accommodations
          relating to the above described docket number.

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

          On December 6, 1988, the tenants commenced the  proceeding  below
          by filing a complaint of a decrease  in  building-wide  services,
          asserting that the elevator did not stop at the fourth  floor  of
          the subject premises, and that this  condition  had  existed  for
          over two years.

          In its answer, the owner stated  that  the  elevator  stopped  at
          every floor and that it had signed a proposal  to  modernize  the
          elevator cab.

          On June 6, 1989,  an  inspection  of  the  subject  premises  was
          conducted by a D.H.C.R. inspector who found  that  there  was  no
          elevator service due to the fact that a new  elevator  was  being
          installed.

          The Rent Administrator directed restoration of elevator  services
          and further ordered a reduction of the regulated rents.

          In its petition for administrative review, the owner states  that
          it was not notified  of  the  tenants'  complaint  and  that  the
          elevator is working perfectly.

          Various tenants responded to  the  owner's  petition  stating  in
          pertinent part that the elevator had a  long  history  of  faulty
          operation.

          The Commissioner is of the opinion that the  petition  should  be
          granted.

          The Commissioner notes that the order here under appeal is  based
          on a  single  staff  inspection  which  found  the  elevator  was
          inoperable as the result of the owner's  installation  of  a  new






          DI 430123 RO
          elevator.  In the absence of evidence that the  installation  was
          unnecessarily prolonged, a service interruption occasioned by the 
          installation of a new elevator does not constitute a  failure  to
          maintain services for which a rent reduction is warranted.

          On May 29, 1991, under docket number DI 420168  OR,  the  owner's
          application to restore the rent was granted.  If  the  owner  has
          already complied with  the  Administrator's  order  reducing  the
          rents, and there are arrears due to the owner as a result of  the
          instant determination, the tenants shall be permitted to pay  off
          the arrears in twelve monthly installments.   Should  the  tenant
          vacate after the issuance  of  this  order,  or  have  previously
          vacated, said arrears shall be payable immediately.

          THEREFORE, in accordance with  the  Rent  Stabilization  Law  and
          Code, and the Rent and Eviction Regulations for New York City, it 
          is

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

                                                                           
                                                  ELLIOT SANDER
                                                  Deputy Commissioner 
    

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