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

          APPEAL OF                                    DOCKET NO.: DE530019RO

                    Jasper Associates,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: CD530094B


          The above-named owner filed a timely petition for administrative 
          review of an order issued on March 28, 1989 concerning the housing 
          accommodations known as 45 Tiemann Place, New York, New York, 
          wherein the Rent Administrator determined the tenants' complaint of 
          a decrease in building-wide 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 petition.

          The tenants commenced this proceeding by filing a complaint 
          asserting that the owner had failed to maintain certain services in 
          the subject building.

          In an answer, the owner denied the allegations set forth in the 
          complaint or otherwise asserted that all required repairs had been 
          or will be completed.

          Thereafter, the DHCR conducted an inspection of the subject 
          premises.  The DHCR inspector reported a missing laundry room sink, 
          basement and laundry room walls and ceilings painted in an 
          unworkmanlike manner and in need of repainting, cracks on the east 
          side of the building between the fourth and fifth floor, exterior 
          masonry in need of painting, roof leaks into a sixth floor 
          apartment, uneven plastering on a ground level wall, and no lock or 
          handle on the building entrance door.  The inspector also reported 
          that there were cracks on the elevator floor, that the elevator cab 
          required painting and that the elevator vent was not working.  
          Other services were found to be maintained.


          The Rent Administrator directed restoration of these services and 
          further, ordered a reduction of the stabilized and controlled 

          In this petition for administrative review, the owner argues that 
          the complaint had been effectively withdrawn prior to the issuance 
          of the Rent Administrator's order per a settlement entered into by 
          the parties in Housing Court, represented by Counsel, and so 
          ordered by the presiding Judge.  However, the copy of the 
          stipulation submitted with the petition is not dated, and lacks the 
          Judge's signature.

          The owner also argues that it was denied due process in that the 
          Rent Administrator failed to give the owner notice of the 
          inspection or of the results thereof, allegedly departing from the 
          DHCR procedures normally afforded the processing of complaints.

          After careful consideration, the Commissioner is of the opinion 
          that the petition should be denied.

          Pursuant to Section 2523.4 of the Rent Stabilization Code, DHCR is 
          required to order a rent reduction, upon application by a tenant, 
          where it is found that an owner has failed to maintain required 
          services.  Pursuant to Section 2202.16 of the Rent and Eviction 
          Regulations, the Rent Administrator may impose a rent reduction if 
          there has been a decrease in essential services,  furnishings or 
          equipment, among other items.

          The owner's petition does not establish any basis for modifying or 
          revoking the Administrator's order, which determined that the owner 
          was not maintaining services based on a physical inspection 
          confirming the existence of defective conditions in the subject 
          building for which a rent reduction is warranted.

          The additional assertion submitted on appeal, that the tenants and 
          the owner were negotiating or had stipulated to have the complaint 
          withdrawn could not be considered, since scope of review is limited 
          to evidence and issues submitted to the Rent Administrator for 
          consideration.  It is also not clear from the owner's statements if 
          the alleged settlement occurred prior to or after the date of the 
          Rent Administrator's order.

          The Commissioner also rejects the argument that the owner was 
          denied due process because it was not apprised of the inspection 
          nor notified of the results prior to the determination.  Neither 
          the Rent Stabilization Law nor the Code require that such notice be 
          given.  The owner was fully informed of the allegations in the 
          tenant's complaint.  The inspection merely confirmed some of the 
          allegations in the complaint.  Empress Manor Apartments v DHCR, 
          147 A.D. 2d 642, 538 NYS 2d 49 (A.D.2nd Dept. 1989).
          The Commissioner notes that DHCR records reveal that the Rent 
          Administrator issued an order (Docket No. FD530294OR) on January 


          23, 1992 that granted the owner's rent restoration application.

          The automatic stay of the retroactive rent abatement that resulted 
          by the filing of this petition is vacated upon issuance of this 
          order and opinion.

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

          ORDERED, that this petition be, and the same hereby is, denied, and 
          that the Rent Administrator's order be, and the same hereby is, 


                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  


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