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

          -----------------------------------X 
          IN THE MATTER OF THE ADMINISTRATIVE      ADMINISTRATIVE REVIEW
          APPEAL OF                                DOCKET NO.:FA110015RO     
                                                        
          Ocean Leasing Co.,                       RENT ADMINISTRATOR'S
                                                   DOCKET NO.:EH110200S      
                                                       
                                                   SUBJECT PREMISES:
                                                      22-11 New Haven Ave.   
                                                      Apt. 6G
                                                      Far Rockaway, NY     
                                PETITIONER     
          -----------------------------------X                           
              

             ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN 
                           PART AND MODIFYING ADMINISTRATOR'S ORDER

            The above-named owner filed a timely petition for administrative 
            review of an order by the Rent Administrator 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 August 9, 1990 by filing a 
            complaint asserting that the owner had failed to maintain certain 
            services in the subject apartment.

            In an answer filed on September 13, 1990 (dated August 24, 1990), 
            the owner asserted in substance that repairs were in progress.

            In a subsequent submission filed on September 21, 1990, the owner 
            enclosed a copy of a work order purportedly signed by the tenant on 
            September 9, 1990 stating that all repairs had been completed.

            However, the subject apartment was inspected on November 16, 1990 by 
            a DHCR staff member who confirmed the existence of defective 
            conditions.

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

            In this petition, the owner contends in substance 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 
            FA110015RO







            the petition should be granted in part and that the Administrator's 
            order should be 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 
            services.

            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 physical inspection revealed that, contrary 
            to the owner's allegations and statement allegedly signed by the 
            tenant, the necessary repairs were not done and could not possibly 
            have been done properly in August 1990 if three months later the 
            kitchen ceiling was not yet painted. A rent reduction for this 
            condition 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 copy of 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 December 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 physical inspection revealed the need 
            for additional repairs.

            The owner's rent restoration application (FA110050OR) was granted on 
            May 1, 1991.

            Rent arrears may be due the owner from the tenant as a result of 
            this Order and Opinion. Any arrears shall be paid in monthly 
            installments which shall not exceed the amount of the monthly 
            reductions revoked herein.

            Therefore, in accordance with the Rent Stabilization Law and Codes 
            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 accordingly.


            ISSUED:


                                                                          
                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner