Doc. #CH510016RO
                                  STATE OF NEW YORK
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                              JAMAICA, NEW YORK  11433

          APPEAL OF                                 DOCKET NO.: CH510016RO
                Heights Realty Company,       :     RENT ADMINISTRATOR'S
                                                    DOCKET NO.: CA510099OR

                              PETITIONER      :     


          On August 11, 1988, the above-named petitioner-owner filed a timely 
          petition for administrative review of an order issued on August 1, 
          1988, by the Rent Administrator, concerning the housing 
          accommodation known as Apartment 55, 636 West 172nd Street, New 
          York, NY wherein the Administrator denied the owner's rent 
          restoration application.

          The Commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issues raised by the administrative appeal.

          The record reveals that on January 25, 1988, the owner filed a rent 
          restoration application in which he stated that the subject 
          apartment, for which the rent had been established a $1.00 per 
          month, had been restored to a habitable condition.

          An inspector from DHCR inspected  the premises on June 9, 1988 and 
          reported that although repairs were in progress, the apartment 
          remained in an uninhabitable condition.

          Based on this inspection report, the Rent Administrator denied the 
          owner's application.

          In the petition for administrative review, the owner asserts that 
          it obtained legal possession of the apartment on February 29, 1988, 
          completely renovated it, and completed the work by June 2, 1988.  
          The owner adds that this work was in addition to the work done by 
          September 1987 which made the apartment habitable.  The owner 
          claims that the inspector could not have investigated the condition 
          of the apartment because he did not acknowledge the renovation that 
          was done and he could not have gained access to the apartment 
          because it was vacant.

          The petition was served on the former occupant at his new address 
          on September 25, 1988.
          After careful consideration, the Commissioner is of the opinion 
          that the petition should be denied.

          Doc. #CH510016RO

          The owner's application was based on an assertion that the 
          apartment had been restored to a habitable condition but the 
          subsequent inspection by the Division revealed that although 
          repairs  were obviously in progress, the apartment was not yet 
          habitable.  Contrary to the owner's statement, the inspector 
          evidently did gain access to the apartment and did note that work 
          was going on.  Based on this inspection report, the Administrator 
          properly denied the owner's application.
          The establishment of the rent at $1.00 per month for an 
          uninhabitable apartment pursuant to Section 2522.6 of the Rent 
          Stabilization Code, is designed to maintain the landlord/tenant 
          relationship between the parties until reoccupancy of the apartment 
          is possible.  If, the owner obtained legal possession of the 
          apartment on February 29, 1988 as alleged, the owner may apply to 
          the Division for rent restoration with evidence of the date the 
          landlord/tenant relationship was terminated.

          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, 


                                                 Joseph A. D'Agosta
                                                 Deputy Commissioner

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