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

          APPEAL OF                                    DOCKET NO.:
                    Eastwood Towers Co.,
                                                       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 355 East 72 St, Apt. 21C, New York, 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 a complaint on 
          October 26, 1987, asserting that the owner had failed to correct a 
          leak which has caused damage to the ceilings in the apartment and 
          subsequently caused peeling paint and plaster.

          In an answer, the owner denied the allegations set forth in the 
          complaint or otherwise asserted that after a visual inspection of 
          the premises, there was no present water problem in the apartment, 
          the apartment is dry, and that all apartment repairs were made 
          sometime ago.  The tenant replied that the owner did not inspect 
          the apartment.

          Thereafter, an inspection of the subject apartment was conducted by 
          a DHCR inspector on May 4, 1988, who confirmed the existence of the 
          following defective condition:

               Peeling paint and plaster throughout the Livingroom, 
               Diningroom, Bedroom and on the main closet ceilings.

          The Rent Administrator directed restoration of these services and 
          further ordered a reduction of the stabilization rent.
          In its petition for administrative review, dated August 12, 1988, 
          the owner states in substance, that the tenant never put in a 


          request for the apartment to be plastered and painted.

          The DHCR served a copy of the petition on the tenant on September 
          27, 1988.  The tenant answered that the owner had not offered to 
          restore services and had in fact refused to restore the services 
          addressed in the complaint.

          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 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 Administrator's order was properly based on the May 4, 1988 
          on-site inspection which confirmed the existence of peeling paint 
          and plaster on the ceilings throughout the apartment.  This 
          condition is sufficiently related to the tenant's complaint of leak 
          damage and established that adequate repairs were not made.  
          Accordingly, the determination was in all respects proper and is 
          hereby sustained. 

          The owner may file a rent restoration application if the facts so 

          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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