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

          APPEAL OF                                    DOCKET NO.: 
                    Cape Management Corp.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.:


          The above-named petitioner-owner filed a timely petition for 
          administrative review of an order issued concerning the housing 
          accommodation known as 4200 Avenue K, Apt. 2B, Brooklyn, N.Y.

          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 the proceeding below by filing an Application 
          for Rent Reduction because of the owner's failure to maintain the 
          intercom system.

          The Administrator ordered a physical inspection of the subject 
          apartment.  The inspection was conducted on April 25, 1988.  The 
          inspector reported the intercom system to be defective.

          The Rent Administrator directed restoration of these services and 
          further ordered a reduction of the stabilization rent.

          In its petition for administrative review, the owner states, in 
          substance, that all repairs have been made to the intercom system.  
          The owner also enclosed a signed letter from the tenant attesting 
          to the fact that the intercom system was currently working and in 
          good condition.

          The DHCR served a copy of the petition on the tenant on October 31, 
          1988.  In its answer the tenant states that the intercom was not 
          After careful consideration, the Commissioner is of the opinion 
          that the petition should be denied.


          The Administrator's order was properly based on a April 25, 1988 
          on-site inspection which confirmed that the intercom system was 
          defective.  Accordingly, the determination was in all respects 
          proper and is hereby sustained.  

          Pursuant to Section 2523.4 of the Rent Stabilization Code, DHCR is 
          required to order the rent reduction, upon application by the 
          tenant, where it is found that the 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 is warranted.

          The Division's records reveal that the owner's rent reduction 
          application was granted on March 29, 1989 (Docket No. CI210057OR).

          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 
          and the Emergency Tenant Protection Act of 1974, 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, 



                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  

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