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

          APPEAL OF                                DOCKET NO.:ED110301RO     
          Krumholz Associates,                     RENT ADMINISTRATOR'S
                                                   DOCKET NO.:DD110215S      
                                                   SUBJECT PREMISES:
                                                      45-25 39 Place
                                                      Apt. 1C
                                                      Sunnyside, NY   


            The above-named owner filed a timely petition for administrative 
            review of an order issued on March 30, 1990 concerning the housing 
            accommodations relating to the above-described docket number.  

            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.

            The tenant commenced this proceeding on March 28, 1989 by filing a 
            complaint asserting that the owner had failed to maintain certain 
            services in the subject apartment.

            In an answer filed on May 11, 1989, the owner asserted in substance 
            that all repairs were done, attaching a copy of a statement signed 
            by the tenant indicating so.

            On March 19, 1990, an inspection of the subject apartment was 
            conducted by a DHCR staff member who confirmed the existence of 
            defective conditions.

            By an order dated March 30, 1990, the Administrator directed the 
            restoration of services and ordered a rent reduction.

            In this petition, the owner contends in substance that all work was 
            done; and that the tenant acknowledged completion of repairs before 
            the inspection and the order's issuance.

            DHCR mailed a copy of the petition to the tenant.

            After careful consideration, the Commissioner is of the opinion that 
            the petition should be granted in part and the Administrator's order 
            modified accordingly.


            Pursuant to Section 2523.4 of the Rent Stabilization Code, DHCR is 
            authorized to order a rent reduction upon application by a tenant 
            where it is found that an owner has failed to maintain required 

            Based on the tenant's signed statement that all repairs had been 
            completed, the owner could reasonably assume that no further action 
            was required and that the proceeding before DHCR would be terminated 
            without a rent reduction. Due process requires that the tenant's 
            statement, if submitted by the owner, be served on the tenant and if 
            challenged, that the owner be advised that the complaint was not 
            being withdrawn.

            In the instant case, the inspection revealed that contrary to the 
            owner's allegations and the statement allegedly signed by the 
            tenant, the necessary repairs were not done and could not possibly 
            have been done properly in May 1989 if ten months later the bathroom 
            ceiling and wall were leaking, the bathroom wall had defective 
            plaster falling off, the bathroom sink was dripping water from the 
            faucet, the stove was defective in that not all the burners worked 
            and the oven did not work, and the apartment had peeling paint and 
            plaster throughout. A rent reduction for these conditions is 
            required pursuant to Section 2523.4 of the Rent Stabilization Code, 
            but because of the failure to verify the tenant's signature on the 
            signed work order or to advise the owner that the complaint was not 
            being terminated, the effective date of the rent reduction is hereby 
            modified to April 1, 1990, the first of the month following issuance 
            of the Administrator's order, when the owner had actual knowledge 
            that the complaint was still active and that DHCR's inspection 
            revealed the need for additional repairs.

            The owner's rent restoration application (EE110025OR) was denied on 
            January 4, 1991.

            THEREFORE, in accordance with the Rent Stabilization Law and Code 
            and Operational Bulletin 84-1, it is

            ORDERED, that this petition be, and the same hereby is, granted in 
            part, and that the Administrator's order be, and the same hereby is, 
            modified in accordance with this Order and Opinion.


                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner


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