FH 110109-RO

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

          APPEALS OF                              DOCKET NO.:   
                                                  FH 110109-RO                
                     ANTHONY GOMES,               
                                                  RENT          ADMINISTRATOR'S
                                                  DOCKET NO.: 
                                  PETITIONER      DK 130064-B


          On July 26, 1991, the above-named  owner  filed  a  petition  for
          administrative review of an order issued on June 24, 1991,  by  a
          Rent Administrator concerning the housing accommodations  in  the
          building known as 40-17 23rd Street, Long Island City, New  York,
          wherein rents were reduced due to a diminution of service.

          The Commissioner has reviewed all of evidence in the  record  and
          has carefully considered that  portion  relevant  to  the  issues
          raised by the petition for review.

          On November 24, 1989 the stabilized tenant of Apartment  2  filed
          an application for a rent reduction based on the owner's  alleged
          failure to maintain service alleging inter alia - non-maintenance 
          of public hallways.

          The owner interposed an answer to the tenant's complaint  wherein
          he alleged that public hallways were thoroughly swept and mopped.

          On March 1, 1991 and again on April 23, 1991 a  physical  inspec-
          tion of the subject building was carried out by the  Division  of
          Housing and Community Renewal  (DHCR).   The  inspector,  in  his
          report, noted that the complained of condition was as alleged  by
          the tenant.

          On June 24, 1991, the Rent Administrator issued  the  order  here
          under review, finding that a diminution of services had  occurred
          and reducing the complaining 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  administrator
          further ordered a five dollar ($5.00) monthly  reduction  in  the
          rents of the rent-controlled tenants of the building.

          In his petition for  administrative  review  the  owner  requests
          reversal of the Rent Administrator's order alleging  that  public

          FH 110109-RO
          areas are regularly swept and mopped.  Attached  to  the  owner's
          petition is a statement signed by every tenant  in  the  building
          except the complaining  tenant  which  corroborates  the  owner's
          statement of regular maintenance.

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

          The Commissioner notes that, wi h  the  exception  of  the  rent-
          stabilized tenant of Apartment 2, no other tenant in the building 
          joined in the original complaint.  Accordingly, the owner was not 
          on notice of a potential rent-reduction  being  ordered  for  any
          tenant other than the complainant.  Therefor ,  the  rent  reduc-
          tions ordered for the three rent-controlled tenants were a denial 
          of due process as to the owner and must be revoked.

          If there are arrears owed to the owner as a result  f  the  issu-
          ance of this order and opinion  the  tenants  may  pay  off  said
          arrears in three equal monthly installments  beginning  with  the
          first rent payment date after the issuance of this order.

          Pursuant to Section 2523.4(a) of the Rent Stabilization Code,

                   "A tenant may apply to the DHCR for a reduc-
                    tion of the legal regulated rent to  the  level
                    in effect prior to the most recent guidelines
                    adjustment, and the DHCR shall  so  reduce  the
                    rent for the  period  for  which  it  is  found
                    that t e  owner  has  failed  to  maintain  re-
                    quired services."

          Required services are defined in  Section  2520.6(r)  to  include
          repairs and maintenance.

          The Commissioner finds that the administrator properly based  his
          determination on the entire record, including the results of  two
          on-site physical inspections and that pursuant to 

          Section 2523.4(a) of the Code, the administrator was mandated  to
          reduce the rent upon determining that the  owner  had  failed  to
          maintain services.

          This Order and Opinion is issued without prejudice to the owner's 
          rights as they may pertain to an application to the Division  for
          a restoration of rent based upon the restoration of services.

          THEREFORE, in accordance with  the  Rent  Stabilization  Law  and
          Code,  and the Rent & Evictions Regulations for New York City, it 

          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  f  revoking  the  rent  reduc-
          tions of the rent-controlled tenants of Apartments 4, 5, and 8.
          In all other respects the Rent Administrator's order is affirmed.

          FH 110109-RO


                                                ELLIOT SANDER
                                                Deputy Commissioner


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