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

          APPEAL OF                                    DOCKET NO.:

                    301 Realty Co.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.:

                                                       301 East 38th Street
                                                       Apt. 7H
                                                       New York, N.Y.



          The above-named owner filed a timely petition for administrative 
          review of an order issued on February 15, 1990 concerning the 
          housing accommodations relating to the above-described docket 

          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 in this petition.

          The tenant commenced the proceeding below on January 27, 1989 by 
          filing a complaint asserting that the owner had failed to maintain 
          certain services in the subject apartment.

          On February 8, 1989, a copy of the complaint was mailed to the 
          owner at its correct address as filed in the record.

          There is nothing in the record to indicate that the owner filed an 
          answer to the tenant's complaint or that the copy of the complaint 


          was returned to DHCR unclaimed by the owner.

          Thereafter, a physical inspection of the subject apartment was 
          conducted on January 16, 1990 by a DHCR staff member who confirmed 
          the existence of defective conditions.

          By an order dated February 15, 1990, the Administrator directed the 
          restoration of services and ordered a rent reduction as follows:

               1.   The kitchen walls had peeling paint
                    and plaster and cracked plaster.        $3.00

               2.   The kitchen oven was defective.         $4.00

               3.   The electrical outlet in the bedroom
                    wall was loose.                         $1.00

                                                  TOTAL     $8.00

          In the petition for administrative review, the owner contends that 
          it had not received the tenant's complaint; the tenant was offered 
          a regular size gas stove as used by all the other tenants; and that 
          the tenant refused the replacement gas stove.

          In answer, the tenant denied in substance refusing the gas stove, 
          and otherwise stated that the gas stove company failed to appear on 
          two scheduled appointments; and that there is no space for a 
          regular size gas stove in the apartment.

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

          Pursuant to Section 2202.16 of the Rent and Eviction Regulations, 
          the Rent Administrator may impose a rent reduction when there has 
          been a decrease in services.  The owner's petition does not 
          establish any basis to modify or revoke the Administrator's 
          determination based on a January 16, 1990 physical inspection which 
          confirmed the existence of defective conditions, warranting a rent 

          The bare allegation that the owner did not receive the tenant's 
          complaint fails to disturb the record showing that on February 8, 
          1989, a copy of the complaint was mailed to the owner at its 
          correct address and there is no copy of the complaint returned to 
          DHCR unclaimed by the owner.  The claim that the tenant refused the 
          replacement gas stove is also unsubstantiated.  Accordingly, the 
          order appealed from was in all respects proper and is hereby 

          The Commissioner notes that the owner's rent restoration 
          application (EH420057OR) was granted in part on May 23, 1991.


          The automatic stay of the retroactive rent reduction that resulted 
          by the filing of this petition is vacated upon issuance of this 
          Order and Opinion.    

          THEREFORE, in accordance with the Rent and Eviction Regulations, 
          it is

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



                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  


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