EC530409RO
                                  STATE OF NEW YORK
                      DIVISION OF HOUSING AND COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                                  JAMAICA, NY 11433





          ------------------------------------x
          IN THE MATTER OF THE ADMINISTRATIVE          ADMINISTRATIVE REVIEW
          APPEAL OF                                    DOCKET NO.: EC530409RO

                    Manhattan Seven Corp.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: DD530044B
                                   PETITIONER
          ------------------------------------x


            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW

          On March 2, 1990, the above-named petitioner-owner filed a petition 
          for administrative review (PAR) of an order issued on January 29, 
          1990, by the Rent Administrator, concerning the housing 
          accommodations known as 853 Riverside Drive, New York, N.Y., 
          various apartments, wherein the Administrator determined that a 
          reduction rent was warranted based upon a reduction in services.

          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 rents of various rent regulated apartments in the subject 
          building.

          On April 6, 1989, the tenants filed a building-wide complaint 
          alleging that the owner failed to maintain services in the subject 
          building.

          The owner filed an answer to the complaint, on May 8, 1989, 
          alleging that all services specified in the complaint were being 
          maintained.




          A DHCR inspection conducted on November 17, 1989, revealed the 
          following:












          EC530409RO


          1.   The drain is clogged.
          2.   There is evidence of peeling paint and plaster and water 
               stains on sixth floor ceiling near elevator and around roof 
               door.
          3.   Back yard is littered and has garbage accumulation.
          4.   Iron mesh gate on catwalk is missing.

          The physical inspection also found the following services to be 
          maintained:

           1.  Elevator is clean, functional, and does not need painting.
           2.  Entrance and vestibule door and locks are adequate.
           3.  Roof door is secured with two (2) barrel bolt lock.
           4.  No evidence of defective sidewalk.
           5.  No evidence of garbage accumulation.  There is sufficient 
               number of garbage cans provided.  Owner is required to provide 
               lids for garbage cans.
           6.  No evidence of dirty glass on entrance doors.
           7.  Garden and court yard areas are clean.
           8.  Lobby area is clean.
           9.  There is no evidence that fire escape needs painting.
          10.  Painting is adequate in all public areas of the building with 
               the exception of the sixth floor.
          11.  No evidence of vermin infestation.
          12.  Basement area, including laundry room is clean.  No evidence 
               of discarded furniture or appliances in basement.
          13.  No evidence of deteriorated stairway at the North end of the 
               building.
          14.  No evidence of defective door or lock on right side of main 
               floor.
          15.  Catwalk on North side of building is adequately lit.
          16.  Basement doors are provided with secure locks.  Unauthorized 
               access cannot be obtained through basement.

          On appeal, the petitioner-owner asserted, in pertinent part, that 
          the four service items enumerated in the Rent Administrator's rent 
          reduction order were not specified in the tenants' complaint and as 
          a consequence thereof, the petitioner-owner was not given adequate 
          notice of the conditions and was deprived of its right to due 
          process.

          The petition was served on the tenants on May 31, 1990.

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

          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 






          EC530409RO

          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.

          Section 2202.16 of the Rent and Eviction Regulations provides that 
          an owner's failure to maintain services may result in an order of 
          decrease in maximum rent, in an amount determined by the discretion 
          of the Rent Administrator.

          The appealed order enumerated four service deficiencies as a 
          predicate for the reduction of rent but a review of the tenants' 
          complaint shows that these services were not cited in the 
          complaint.  The tenants' complaint of April 6, 1989, failed to 
          specify clogged backyard drain, peeling paint, peeling plaster, and 
          water stains on the sixth floor ceiling near the elevator, garbage 
          accumulation and litter in the backyard or a missing iron mesh gate 
          on the catwalk.

          Accordingly, the Commissioner finds that the service deficiencies 
          cited in the appealed order were not delineated with sufficient 
          particularity in the complaint and that consequently, the 
          petitioner-owner was deprived of its right to due process.  

          Upon the facts determined herein, the Commissioner further finds 
          that the Rent Administrator erred by reducing the rent based upon 
          the owner's failure to maintain the four services specified in the 
          appealed order.

          If the tenants are of the opinion that these services are 
          deficient, they may file a new services complaint with the 
          Administrator.

          Any arrears due the owner from rent controlled tenants as a result 
          of this order shall be paid in equal installments at the amount of 
          the monthly rent reduction granted in the proceeding below, but 
          revoked herein.  Any rent stabilized tenant who owes arrears may 
          pay off said arrears in twenty-four (24) equal monthly 
          installments.  Any tenant who vacates owes arrears immediately.






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

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












          EC530409RO

          hereby, is revoked, in accordance with this order and opinion.



          ISSUED:




                                                                     
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  
    

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