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

          APPEAL OF                                    DOCKET NO.: DL530058RO

               Stellar Management Co. Inc.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: CL530040B



          On December 15, 1989, the above-named petitioner-owner timely re- 
          filed a petition for administrative review (PAR) of an order issued 
          on October 5, 1989, by the Rent Administrator, concerning the 
          housing accommodations known as 1306 St. Nicholas Avenue, New York, 
          N.Y., various apartments, wherein the Administrator determined that 
          a reduction in rent was warranted based upon a reduction in 

          The Rent Administrator also directed full restoration of 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 administrative appeal.

          The issue herein is whether the Rent Administrator properly reduced 
          the rent of various rent regulated apartments in the subject 

          On December 19, 1988, the tenants filed a complaint alleging that 
          the owner failed to maintain services.  On December 29, 1988, the 
          Division mailed a copy of the complaint to the owner.  The record 
          does not contain any response to the complaint from the owner.

          A DHCR inspection conducted on September 28, 1989, revealed that 
          although a number of services specified in the complaint were being 
          maintained, the entrance to the courtyard had been sealed off in 
          the lobby and, therefore, access could not be gained to ascertain 
          if the guard rails were missing or broken.  The inspection further 
          showed that a box had been installed which sealed off the ground 
          floor windows.


          On appeal, the petitioner-owner asserted, in pertinent part, that 
          the guard rails in the courtyard were not broken or missing and 
          that the box placed against the ground floor windows was installed 
          to keep out undesirables.  The petitioner further asserted that the 
          box was subsequently removed.

          The petition was served on the tenants on March 26, 1990.

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

          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 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 
          repairs and maintenance.

          For rent controlled tenants, Section 2202.16 of the Rent and 
          Eviction regulations provides that a finding that an owner failed 
          to maintain essential services may result in an order of decrease 
          in maximum rent, in an amount determined by the Rent Administrator, 
          to reflect the decreased rental value because of the decrease in 

          The inspection conducted on September 28, 1989, demonstrated that 
          the owner failed to maintain services in the public areas of the 

          The Commissioner finds that the Administrator properly based the 
          determination on the entire record, including the results of the 
          on-site physical inspection conducted on September 28, 1989, and 
          that pursuant to Section 2523.4(a) of the Code and Section 2202.16 
          of the Rent and Eviction Regulations, a rent reduction was 

          The Commissioner notes that although the owner was properly served 
          with a copy of the complaint, on December 29, 1988, the owner 
          failed to interpose any answer to the complaint.

          The Commissioner finds, therefore, that the petitioner having 
          failed to raise any issue whatsoever while the proceeding was 
          pending before the Rent Administrator, it may not now raise issues 
          for the first time on administrative appeal.


          As regards the Rent Stabilized tenants, the automatic stay of the 
          retroactive rent abatement that resulted from the filing of this 
          petition is vacated upon issuance of this Order and Opinion.

          The record shows that the owner's application for rent restoration 
          was denied by the Rent Administrator, on August 22, 1990, under 
          Docket No. DJ430155OR.
          Upon a restoration of services the owner may separately re-apply 
          for a rent restoration.

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

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


                                             LULA M. ANDERSON
                                             Deputy Commissioner  


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