ARL-12954-Q
                                  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.: ARL-12954-Q

                CLEARWATER REALTY COMPANY,
                                                  DRO DOCKET NO.: QS 000031-OR

                                  PETITIONER
          ----------------------------------X                                   


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


          On August 28, 1986, the  above-named  petitioner-owner  filed  an
          Administrative Appeal against an order issued on August 22,  1986
          by the District Rent  Administrator,  92-31  Union  Hall  Street,
          Jamaica, New York, concerning the housing accommodations known as 
          37-55 77th Street, Jackson Heights, New York, Apartment 6-D.

          The issue herein  is  whether  the  District  Rent  Administrator
          properly restored the rent of the subject apartment effective May 
          1, 1986.

          The District Rent Administrator's order, appealed herein  granted
          the owner's restoration application in  whole  and  restored  the
          rent of the subject apartment in the amount of $28.00 per  month,
          effective May 1, 1986.

          On appeal, the petitioner-owner alleged, in substance,  that  the
          effective date of the restoration order should  be  May  1,  1985
          instead of May 1, 1986, as there was no decrease in  service  and
          that the owner was  never  afforded  an  opportunity  to  respond
          below.

          After a careful consideration of the evidence of  record,  before
          the Commissioner, the Commissioner is of  the  opinion  that  the
          administrative appeal should be denied.



          The record shows that the  rent  of  the  subject  apartment  was
          reduced by the District Rent Administrator by $28.00  per  month,
          on March 12, 1985, based on a reduction of services.

          The owner's application for a restoration of rent was granted  in
          whole by the District Rent  Administrator  on  August  22,  1986,
          effective May 1, 1986.

          In an application to restore rent, an owner cannot challenge  the
          reason for  the  original  reduction  in  rent.   The  owner  was






          ARL-12954-Q
          required to file a Petition for Administrative Review,  which  it
          did not do.  Therefore, the owner cannot challenge the  effective
          date based upon  the  argument  that  services  had  always  been
          provided.

          Accordingly,  the  Commissioner  finds  that  the  District  Rent
          Administrator properly issued the restoration order dated  August
          22, 1986.

          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 order of the District Rent Administrator be, and the 
          same hereby is, affirmed.






          ISSUED:
                                                  ------------------------
                                                  JOSEPH A. D'AGOSTA
                                                  Deputy Commissioner