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

          APPEAL OF                                    DOCKET NO.: CD620206RO

                    77 Realty Co.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: BK620081OR


          The above-named petitioner-owner filed a timely petition for 
          administrative review of an order issued concerning the housing 
          accommodation known as 735 East 242nd Street, Apt. 4D, Bronx, 
          New York.

          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 owner commenced the proceeding on November 12, 1987 by filing  
          an Application for Rent Restoration wherein it alleged that it had 
          restored services for which a rent reduction order bearing Docket 
          No. B001645S had been issued wherein the owner was directed to 
          correct the problem of the inadequate hot water temperature which 
          was at 90 degrees.

          In an answer, the tenant stated that she had not been given any 
          rent reduction.

          Thereafter an inspection of the subject apartment was conducted by 
          a DHCR inspector on February 8, 1988, who confirmed the existence 
          of the following defective conditions:

               Inadequate hot water temperature; 90 degrees.
               Hot water must be kept at a constant minimum temperature 
               of 120 degrees in accordance with the provisions of the 
               building Code and the regulations of the Department.

          The Rent Administrator denied the owner's rent restoration 


          In its petition for administrative review, the owner states, in 
          substance, that the hot water temperature is well over 90 degrees 
          and over the minimum 120 degree level and he would like to be 
          present at the next inspection.

          The DHCR served a copy of the petition on the tenant on June 27, 
          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 a rent reduction, upon application by a tenant, 
          where it is found that an 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 condi- 
          tions in the subject apartment for which continuation of the rent 
          reduction is warranted.

          Accordingly, the Commissioner finds that the Administrator properly 
          determined that the owner had failed to restore the hot water 
          temperature to the adequate level based on the evidence of record, 
          including the results of the on-site physical inspection of the 
          subject premises on February 8, 1988.

          The owner may file another rent restoration application if the 
          facts so warrant.

          THEREFORE, in accordance with the Rent Stabilization Law and Code 
          and the Emergency Tenant Protection 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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