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

          APPEAL OF                               DOCKET NO.: DA420189RO
          PERLE MANAGEMENT                        RENT
                                                  ADMINISTRATOR'S DOCKET 
                                                  NO.: CA420412S

                                       IN PART

               On January 25, 1989 the above named petitioner-owner filed a 
          Petition for Administrative Review against an order of the Rent 
          Administrator issued December 28, 1988. The order concerned housing 
          accommodations known as Apt. 74 located at 101 West 78th Street, 
          New York, N.Y.  The Administrator directed restoration of services 
          and ordered a rent reduction for failure to maintain required 

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

               The tenant commenced this proceeding on January 8, 1988 by 
          filing a Statement of Complaint of Decrease in Services and stated, 
          in sum, that the owner was not maintaining certain required 
          apartment services.  The tenant indicated on the complaint that the 
          apartment is rent controlled.

               The owner was served with a copy of the complaint and afforded 
          an opportunity to respond. The owner filed a response on March 21, 
          1988 and stated, in sum, that the tenant's complaint had been 
          investigated and that either the cited conditions did not exist or 
          that the required repairs had been made.
               The Administrator ordered a physical inspection of the subject 
          apartment.  The inspection was conducted on December 5, 1988 and 
          revealed that the hallway ceiling and walls are waterstained.  All 
          other services were found to be maintained.

               The Administrator issued the order here under review on 


          December 28, 1988 and ordered a rent reduction of an amount equal 
          to the percentage of the most recent guideline adjustment for the 
          tenant's lease commencing prior to April 1, 1988.

               On appeal the owner, represented by counsel, states that the 
          subject apartment is rent controlled and not rent stabilized and 
          that the apartment had been recently painted.  The order was served 
          on the tenant on February 24, 1989. 

               The tenant filed a response on March 6, 1989 and stated that
          the subject apartment is subject to rent control and that the order 
          here under review is correct in that the condition cited by the 
          Administrator was not repaired.
               After careful review of the evidence in the record, the 
          Commissioner is of the opinion that the petition should be granted 
          in part and the order affirmed as modified herein.

               The Commissioner is of the opinion that the Administrator 
          correctly determined that the owner was not maintaining the service 
          cited in the rent reduction order.  The DHCR inspector who reported 
          the waterstained ceiling and wall is neither a party to this 
          proceeding nor an adversary.  The inspector's report is entitled to 
          more probative weight than the assertions of the owner.

               The Commissioner finds, however, that the Administrator erred 
          in granting a rent stabilized rent reduction to this rent 
          controlled tenant. Accordingly, the order here under review is 
          modified to revoke the rent stabilized rent reduction and order a 
          rent reduction of $5.00 per month effective the first rent payment 
          date following December 28, 1988.  The owner is advised to file a 
          rent restoration application if the conditions have been repaired.

               THEREFORE, pursuant to the Rent Stabilization Law and Code and 
          Rent and Eviction Regulations it is 

               ORDERED, that this petition be, and the same hereby is, 
          granted in part, and that the Rent Administrator's order be, and 
          the same hereby is, affirmed as modified herein.


                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner

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