FA610196RO
                                  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.:
                                                       FA610196RO
                    John Pereira, Esq.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.:
                                                       DI610609S
                                   PETITIONER
          ------------------------------------x

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          The above-named party filed a timely petition for administrative 
          review of an order issued on December 10, 1990, concerning the 
          housing accommodations known as 65 Mount Hope Place, Apt. 4K, 
          Bronx, N.Y., wherein the Rent Administrator determined the tenant's 
          complaint of decreased services against the prior owner.

          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 by filing a complaint 
          asserting that the owner had failed to maintain certain services in 
          the subject apartment.  There is no indication that an answer was 
          filed below.

          The Rent Administrator's order reduced the tenant's rent based on
          the results of an inspection that disclosed that the kitchen 
          cabinets had missing and defective parts, and that kitchen wall 
          tiles were missing.

          In this petition for administrative review, the petitioner notes, 
          in substance, that he is a trustee for the subject premises, 
          appointed in Federal Bankruptcy Court effective March 16, 1990; 
          points out that he was not given notice and an opportunity to 
          respond or act on the complaint; and contends that the Rent 
          Administrator was barred from reducing the rent without first 
          seeking permission from the Bankruptcy Court, and that as trustee, 
          he does not have any liability to the tenant in this case.  The 
          petitioner requests the DHCR to reverse the order and to allow the 
          petitioner time to address the complaint or, in the alternative, to 












          FA610196RO

          modify the order to the extent that the retroactive rent reduction 
          be voided since the bankruptcy wiped out all debts prior to March 
          1990.

          After careful consideration, the Commissioner is of the opinion 
          that the petition should be denied.

          Pursuant to Section 2523.4 of the Rent Stabilization Code, DHCR is 
          required to order a rent reduction, upon application by a tenant, 
          where it is found that an owner has failed to maintain required 
          services.  The owner's petition does not establish any basis for 
          modifying or revoking the Administrator's order which determined 
          that the owner was not maintaining required services based on a 
          physical inspection confirming the existence of defective 
          conditions in the subject apartment for which a rent reduction was 
          warranted.  The Rent Administrator's determination was correct 
          based on the record presented.  It is further noted that the notice 
          and the order were properly addressed and mailed to the owner of 
          record.

          Notwithstanding the above, this order is issued without prejudice 
          to the right of the parties, including the trustee and/or a 
          receiver in control of a building, to seek relief in a forum of 
          competent jurisdiction.

          Moreover, the rent will be restored only when an owner's 
          application to restore the rent is filed and granted.  The current 
          owner, in fee if any, is advised to file such an application if the 
          facts so warrant.

          The automatic stay of the retroactive rent abatement that resulted 
          by the filing of this petition is vacated upon issuance of this 
          order and opinion.

          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          it is

          ORDERED, that this petition be, and the same hereby is, denied, and 
          that the Rent Administrator's order be, and the same hereby is, 
          affirmed.

          ISSUED:

                                                                     
                                             LULA M. ANDERSON
                                             Deputy Commissioner  
    

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