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

          APPEAL OF                                    DOCKET NO.: CD630201RO

                    Cresto Realty Inc.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: BD610009AV


          On April 11, 1988, the above-named petitioner-owner filed a 
          petition for administrative review (PAR) of an order issued on 
          March 29, 1988, by the Rent Administrator, concerning the housing 
          accommodation known as 2698 Creston Avenue, Bronx, N.Y., various 
          apartments, wherein the Administrator determined that due to the 
          existence of violations on the above premises which renders it 
          unfit for human habitation and dangerous to life and limb as 
          determined by the New York City Department of Housing Preservation 
          and Development, (H.P.D.,) Code Enforcement Division, the premises 
          must be vacated and the rent, effective April 19, 1987, was 
          established at $1.00 per month.

          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 issue herein is whether the rents should be restored effective, 
          February 24, 1988, the date the vacate order was rescinded.

          The owner requested that the Rent Administrator's order be reversed 
          and the rent restored based on the rescission of the vacate order 
          due to complete restoration of the premises.

          On appeal, the petitioner-owner asserted, in pertinent part, that 
          the New York City, Department of Housing Preservation and 
          Development, Code Enforcement Division, rescinded the vacate order 
          based upon restoration of the premises and that the rents should, 
          therefore, be restored as of the date of the order was rescinded.

          The petition was served on the tenants on June 30, 1988.


          After a careful consideration of the entire evidence of record the 
          Commissioner is of the opinion that the administrative appeal 
          should be granted.

          A review of the record reveals that on February 24, 1988, the Chief 
          Inspector, from the New York City Department of Housing 
          Preservation and Development, Division of Code Enforcement, 
          recommended that the order to vacate filed against the subject 
          premises, on April 9, 1987, be immediately rescinded.  The 
          recommendation was based upon the results of an inspection 
          conducted on February 3, 1988, which showed that the premises were 
          in good repair.

          The Rent Administrator's order, appealed herein, was issued 
          pursuant to Section 2522.6 of the Rent Stabilization Code and 
          Sections 2202.17 and 2202.20 of the Rent and Eviction Regulations 
          which permit DHCR to determine the legal regulated rent for an 
          apartment based on relevant facts.

          The order was not based on Section 2523.4 (Failure to maintain 
          services) and therefore a request by the tenants for a rent 
          reduction was not required.

          The rent was established at $1.00 in order to maintain the 
          landlord/tenant relationship between the parties while the 
          apartment was uninhabitable and the tenants were obliged to live 
          elsewhere.  Once the tenants are restored to possession, the rent 
          may be restored to its original amount.

          Accordingly, the Commissioner finds that the tenants have been 
          restored to occupancy and that the rents of the subject apartments 
          should be restored to the level in effect prior to the issuance of 
          the vacate-rent reduction order, effective February 24, 1988, the 
          date the vacate order was rescinded.  The tenants may pay any rent 
          arrears due as a result of this order in twelve monthly 

          THEREFORE, in accordance with the Rent Stabilization Law and Code 
          and the Rent and Eviction Regulations for New York City, it is

          ORDERED, that this petition be, and the same hereby is, granted and 
          that the Rent Administrator's order be, and the same hereby is, 
          modified, and the rents be and the same hereby are restored to the 
          level in effect prior to the rent reductions plus subsequent lawful 
          increases, effective February 24, 1988.

                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  

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