CI130121RO
                                  STATE OF NEW YORK
                      DIVISION OF HOUSING AND COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433


          ----------------------------------x
          IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
          APPEAL OF                               DOCKET NO.: CI130121RO
                                                  
          ISIDOROS G. MICHALOS                    RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO.: CA130199OR
                                  PETITIONER            
          ----------------------------------x


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
                                          

          On September 8, 1988 the above named petitioner-owner filed a 
          Petition for Administrative Review against an order of the Rent 
          Administrator issued on August 18, 1988 concerning the housing 
          accommodations known as various apartments at 39-70 62nd Street, 
          Woodside, NY wherein the Administrator denied the owner's rent 
          restoration application. 

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

          The owner filed an application seeking restoration of rent that had 
          been reduced in an order issued on November, 25, 1986 under Docket 
          No. AB130014B.  The rent reduction was ordered based on a finding 
          that the owner had failed to repair or restore the defective 
          building entrance and vestibule door locks, defective bells, dirty 
          garbage area and uncovered cans, and defective windows throughout 
          the building.

          A physical inspection by DHCR on July 5, 1988 revealed a missing 
          lock on the main entrance door, defective bells in some apartments, 
          dirty garbage area and uncovered cans, and defective windows.
           
          Based on the inspector's report, the owner's application was 
          denied.

          In the petition for administrative review, the owner objects to the 
          Administrator's order on the ground that the main entrance door 
          never had a lock but a lock and buzzer system was recently 
          installed on the second door and it is working properly, that the 
          newly installed buzzer and intercom system replace the former bells 
          and is working properly, that new garbage cans have been installed 












          CI130121RO

          with new covers that are secured with chains, that the 
          superintendent keeps the garbage area clean, and that there are no 
          broken or defective windows in the building. The owner argues that 
          he has substantially complied with the directive to restore 
          services and the continuation of a building-wide rent reduction is 
          unfair.

          The petition was served on the tenants on November 18, 1988.
          Several tenants filed answers urging that the owner's petition be 
          denied because many defective conditions remain as noted by the 
          inspector.

          After careful consideration of the evidence of record, the 
          Commissioner is of the opinion that the petition should be denied.

          An owner is entitled to restoration of rents that were ordered 
          reduced by DHCR because of a finding of failure to maintain 
          services once it is established that all required services cited in 
          the rent reduction order have been restored.  The determination as 
          to whether services have been restored is generally made on the 
          basis of a physical inspection of the premises by a DHCR employee.

          In the instant case, the Division's inspector found that none of 
          the conditions for which the rent had been reduced had been 
          restored.  The Rent Administrator properly relied on the results of 
          this report by an impartial employee of the agency in denying the 
          owner's application.  The owner's unsubstantiated statements in the 
          petition are not sufficient to rebut physical inspection by the 
          Division.

          THEREFORE in accordance with the Rent Stabilization Law and Code, 
          it is 

          ORDERED that this petition be and the same hereby is denied and the 
          Rent Administrator's order be and the same hereby is affirmed.
                   
          ISSUED:


                                                                             
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner
                                   
    

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