EG 410254-RO

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

          APPEAL OF                               DOCKET NO.:   
                                                  EG 410254-RO
                    DOCKET NO.: 
                                   PETITIONER     DF 430017-B            

                                       IN PART

          On July 19, 1990, the above-named  owner  filed  a  petition  for
          administrative review of an order issued on July 10,  1990  by  a
          Rent Administrator concerning the housing accommodations known as 
          Apartments 5-B and 1-D. 301 Tenth Avenue,  New  York,  New  York,
          wherein rents were reduced due to a diminution of service.

          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 for review. 

          On May 27, 1989 the stabilized tenant of Apartment 5-B  filed  an
          application for a rent reduction based  on  the  owner's  alleged
          failure to maintain service.

          The owner interposed an answer to the tenant's complaint  wherein
          it alleged that all services were being provided.

          On February 9, 1990 a physical inspection of the  subject  apart-
          ment was carried out by the Division  of  Housing  and  Community
          Renewal (DHCR).  The inspector, in his  report,  noted  that  the
          complained of conditions were as alleged by the tenant.

          On July 10, 1990 the Rent Administrator  issued  the  order  here
          under review finding that a diminution of services  had  occurred
          and reducing the tenant's rent to the level in  effect  prior  to
          the last rent  guideline  increase  which  commenced  before  the
          effective date of the rent  reduction.   The  Rent  Administrator
          further ordered a monthly reduction of the rent of the tenant  of
          Apartment 1-D in the amount of seven dollars ($7.00).

          EG 410254-RO
          In its petition for administrative review the owner reques s  re-
          versal of the Rent Administrator's order alleging, in  substance,
          that all problems had been corrected.

          After careful consideration, the Commissioner is of  the  opinion
          that the petition should be granted in part.

          The Commissioner notes that the only  signatory  to  the  instant
          complaint was the stabilized tenant  f  Apartment  5-B.   Accord-
          ingly, the Commissioner finds that  the  owner  was  not  put  on
          notice that any other tenant had been joined in this  proceeding.
          Hence, the Rent Administrator's reduction of rent for the  tenant
          of Apartment 1-D was a violation of due process and mu t  be  re-

          In regard to the tenant of Apartment 5-B the  Commissioner  finds
          that the order under review should be affirmed.

          The owner's petition does  not  make  clear  whether  it  is  the
          owner's contention that repairs had been made before the building 
          was inspected or the order was issued or whether  the  contention
          is that repairs were made following  the  issuance  of  the  Rent
          Administrator's order.  If it is the  former,  then  the  owner's
          allegation is belied by the report of the agency  inspector.   If
          it is the latter, then the Rent  Administrator's  order  reducing
          the rent was nevertheless correct when issued, and this order  is
          issued without prejudice to the owner  filing  a  restoration  of
          services application.

          THEREFORE, in accordance with the provisions of the Rent Stabili 
          zation 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
          in part and that the Rent Administrator's order be, and the  same
          hereby is, modified to the extent of revoking the rent  reduction
          which had been ordered for Apartment 1-B.  In all other  respects
          the order is affirmed.



          EG 410254-RO
                                                   JOSEPH A. D'AGOSTA
                                                   Acting Deputy Commissioner

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