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

          APPEALS OF                              DOCKET NOS.: CD110192RO 
          ZARA REALTY HOLDING CORP.                                          
          DENISE BELLINI                          RENT
                                                  ADMINISTRATOR'S DOCKET 
                                                  NO.: BJ120185OR

               The above referenced administrative appeals have been 
          consolidated as both contain common issues of law and fact.
               The above named petitioner-owner and petitioner-tenant filed 
          Petitions for Administrative Review against an order of the Rent 
          Administrator issued June 20, 1988. The order concerned housing 
          accommodations known as Apt. 3C located at 89-32 138th Street, 
          Jamaica, N.Y.  The Administrator granted the owner's rent 
          restoration application.  

               The Commissioner has reviewed the record and carefully 
          considered that portion relevant to the issues raised by this 

               The owner commenced this proceeding on October 27, 1987 by 
          filing a rent restoration application wherein it alleged that it 
          had restored services for which a rent reduction order bearing 
          Docket No. BC110029S had been issued.  The Commissioner notes that 
          the Administrator had reduced the tenant's rent based on findings 
          of rodent and vermin infestation, kitchen floor not repaired in 
          workmanlike manner, defective bathtub faucets, discolored and 
          broken bathroom tiles, no electrical outlet in bathroom, hole in 
          bedroom door, living room electrical outlets in need of repair, 
          holes in hallway walls around intercom system, and walls and 
          ceilings throughout apartment peeling paint and plaster. The 
          Commissioner further notes that the owner filed an administrative 
          appeal of the rent reduction order (Docket No. BJ130276RO).  The 
          Commissioner granted this appeal in part and remanded the 
          proceeding to the Administrator for further processing.  In Docket 
          No. FH110043RP, the Administrator modified the original rent 
          reduction order to reflect the fact that the rent was restored by 
          the order here under review effective January 1, 1988.


               The tenant was served with a copy of the application and 
          afforded an opportunity to respond. The tenant filed a response on 
          stated that all services were restored except for certain 
          conditions in the bathroom and the fact that there were waterbugs 
          in the apartment.
               The Administrator ordered a physical inspection of the subject 
          apartment.  The inspection was conducted on May 10, 1988 and 
          revealed the owner had restored services except for the fact that 
          the kitchen floor and bathroom ceiling were in need of further 

               The Administrator issued the order here under review on June 
          20, 1988 and granted the application.  The rent was ordered 
          restored effective January 1, 1988.  The Administrator also 
          directed the owner to repair the kitchen floor and bathroom 

               On appeal the owner states that the tenant had withdrawn the  
          rent reduction complaint prior to the issuance of the rent 
          reduction order and also states that it was entitled to notice of 
          the inspection in the rent reduction proceeding and a copy of the 
          inspector's report.  The petition was served on the tenant on June 
          16, 1988.

               The tenant filed a response on June 27, 1988 and stated, in 
          sum, that the owner's petition was without merit and should be 

               The tenant's appeal states that rent restoration should not 
          have been granted effective January 1, 1988 but, instead, should 
          have been granted effective May 10, 1988 when repairs were 
          completed.  The petition was served on the owner on August 17, 

               The owner filed a response on August 20, 1988 and stated, in 
          sum, that the order here under review was correctly issued, that 
          the tenant's petition was without merit, and that the order here 
          under review should be affirmed.

               After careful review of the evidence in the record, the 
          Commissioner is of the opinion that the petitions should be denied.

               With regard to the owner's appeal, it is apparent that the 
          owner is attacking the underlying rent reduction order and not the 
          order restoring rent.  Since the owner's application has been 
          granted by the Administrator, the owner has not been aggrieved by 
          the issuance of the order here under review.  The owner's petition 
          is, therefore, denied.

               With regard to the tenant's appeal, the Commissioner finds 
          that the Administrator correctly ordered rent restoration for this 


          rent stabilized tenant effective the first rent payment date 
          following service of the owner's application on the tenant.  The 
          application was served on the tenant on December 1, 1988.  The 
          tenant's appeal is denied.

               THEREFORE, pursuant to the Rent Stabilization Law and Code it 

               ORDERED, that these petitions be, and the same hereby are, 
          denied, and that the Rent Administrator's order be, and the same 
          hereby is, affirmed.


                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner


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