FG 420237-RO

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

          APPEAL OF                               DOCKET NO.:   
                                                  FG 420237-RO 
                  GRC CORPORATION,                RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                  PETITIONER      FC 420332-S

                                 RENT ADMINISTRATOR                        

          On July 12, 1991 the  above-named  owner  filed  a  petition  for
          administrative review of an order issued on June 13,  1991  by  a
          Rent Administrator concerning the housing accommodation, known as 
          Apartment 1-W, 410 East 83rd Street, New York, New York,  wherein
          rent was reduced due to a diminution of service.

          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 by the petition for review.

          On March 12, 1991 the subject tenant filed an application  for  a
          rent reduction based on the owner's alleged failure  to  maintain
          service alleging inter alia peeling paint and cracked plaster  in
          the kitchen and living room, and a missing bathroom sink.

          On March 22, 1991 a copy of the tenant's complaint was mailed  to
          the owner at the address furnished by the tenant - 147 West  42nd

          On May 8, 1991 a copy of the tenant's complaint was mailed to the 
          owner at its correct address - 120  West  44th  Street,  and  the
          owner was afforded twenty-one days within which to  interpose  an
          answer thereto.

          On May 21, 1991 a physical inspection of  the  subject  apartment
          was carried out by the Division of Housing and Community  Renewal
          (DHCR).  The inspector, in his report, noted that the  complained
          of conditions were as alleged by the tenant.

          On May 22, 1991 the owner interposed an answer  to  the  tenant's
          complaint wherein it requested a thirty  day  extension  of  time
          within which to interpose an amplified answer and submit documen 

          FG 420237-RO

          On June 13, 1991 the Rent Administrator  issued  the  order  here
          under review finding that a diminution of services  had  occurred
          and reducing the tenant's monthly rental by eighteen dollars.

          In its petition for administrative  review,  the  owner  requests
          reversal of the Rent Administrator's order alleging that  it  had
          requested an extension of time within which  o  answer  by  tele-
          phone and was assured that there would be "no problem." and  that
          pursuant to instructions from the DHCR, it mailed  its  extension
          request to the Administrator.  The owner  further  alleges  inter
          alia that all of the conditions complained of  have  been  recti-
          fied, completed, and no longer exist.

          After careful consideration the Commissioner is  of  the  opinion
          that this petition should be remanded to the  Rent  Administrator
          for further processing.

          The Commissioner notes that the owner was notified of the missing 
          wash basin in the tenant's bathroom on August 25, 1987 by the New 
          York City Department  of  Housing  Preservation  and  Development
          (HPD) and was later notified on July 27, 1989 by the HPD  of  the
          dampness penetrating the  kitchen  walls  and  of  the  need  for
          painting throughout the apartment.  On March 1,  1991  the  owner
          was notified by HPD that the plaster conditions in  the  tenant's
          apartment were  "hazardous"  and  "immediately  hazardous."   The
          Commissioner notes that all of these violations and notifications 
          thereof occurred prior to the tenant's filing of a complaint with 
          this Division.

          The Commissioner also notes that an inspection carried out on May 
          21, 1991 by this Division corroborated the  tenant's  allegations
          of defective conditions.

          The Commissioner further notes that  the  owner's  May  22,  1991
          letter did not reach the Rent Administrator prior to the issuance 
          of the order under review and that the owner was deprived of  the

          opportunity to amplify its answer.  Accordingly, the Commissioner 
          finds that this proceeding should be remanded for the purpose  of
          affording the owner the opportunity to submit further evidence of 
          services being provided including  proof  of  correction  of  the
          cited items.  If, on remand, the  owner  proves  that  conditions
          were corrected prior to the issuance of the Rent  Administrator's
          order (June 13, 1991), then the rent reduction should be  revoked
          nunc pro tunc.

          The Commissioner finally notes  that,  to  date,  the  owner  has
          offered no evidence to substantiate its assertion  of  repair  or
          correction of the cited conditions.

          THEREFORE, in accordance with the Rent and  Eviction  Regulations
          for New York City, it is           

          ORDERED, that this proceeding be, and the  same  hereby  is,  re-

          FG 420237-RO
          manded to  the  Rent  Administrator  for  further  processing  in
          accordance with this order and opinion.   The  previously  issued
          order remains in full force and  effect  until  a  new  order  is
          issued on remand.


                                                ELLIOT SANDER
                                                Deputy Commissioner


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