OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433
          APPEAL OF                               DOCKET NO.:
                                                  (Refile of CL520025RO)
          2 Thayer Street Realty Corp.,           RENT ADMINISTRATOR'S
                                                  DOCKET NO.:

                                                  PREMISES: Apt.3J
                                                  2 Thayer St.
                                                  New York, NY


          The above-named owner filed a timely petition for administrative 
          review of an order issued on November 17, 1988 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 September 7, 1988 by 
          filing a complaint asserting that the owner had failed to maintain 
          certain services in the subject apartment.

          On September 14, 1988, DHCR mailed a copy of the complaint to the 
          owner with a warning that "failure to file an answer within twenty 
          (20) days from the date appearing on this notice shall be 
          considered a default and may result in a determination based on the 
          record as presently before the agency."

          Twenty days elapsed from September 14, 1988, and the owner had not 
          filed an answer to the complaint.

          Thereafter, a physical inspection of the subject apartment was 
          conducted on September 22, 1988 by a DHCR staff member who 
          confirmed the existence of defective conditions.

          In an answer filed on October 19, 1988, the owner asserted in 
          substance that repairs were completed in "the middle of September 


          By an order dated November 17, 1988, the Administrator directed the 
          restoration of services and ordered a rent reduction as follows:

               1. The refrigerator was missing two shelves.
                  The lower door cabinet handle of the
                  refrigerator was missing.                  $5.00

               2. The kitchen sink was warped and the
                  floor cabinet of the sink was rusted.      $2.00

               3. The kitchen sink had low cold water
                  pressure.                                  $2.00
                                             TOTAL           $9.00

          In the petition for administrative review, the owner contends in 
          substance that repairs were completed prior to the issuance of the 
          Administrator's order.

          On May 29, 1990, DHCR mailed a copy of the petition to the tenant.

          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 Administrator may impose a rent reduction when there has been 
          a decrease in services. The owner's petition does not establish any 
          any basis to modify or revoke the Administrator's determination 
          based on a September 22, 1988 physical inspection which confirmed 
          the existence of defective conditions, warranting a rent reduction. 
          Accordingly, the order appealed from was in all respects proper and 
          is hereby sustained.

          The Commissioner notes that the owner's rent restoration 
          application (CL510196OR) was granted on May 17, 1989.

          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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