DG410163RO

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





          ------------------------------------x
          IN THE MATTER OF THE ADMINISTRATIVE          ADMINISTRATIVE REVIEW
          APPEAL OF                                    DOCKET NO.:
                                                       DG410163RO
                    Edlaro Estates,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.:
                                                       CK410133OR
                                   PETITIONER
          ------------------------------------x

            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

          The above-named petitioner-owner filed a timely petition for 
          administrative review of an order issued concerning the housing 
          accommodation known as 525 East 82nd Street, Apt. 12E, New York, 
          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 30, 1988 by filing 
          an Application for Rent Restoration wherein it alleged that it had 
          restored services for which a rent reduction order bearing Docket 
          No. BI410609S had been issued wherein the owner was directed to 
          correct the problem of leak damage on the walls and ceilings 
          throughout the apartment.

          Thereafter, an inspection of the subject apartment was conducted by 
          a DHCR inspector on May 17, 1989, who confirmed the existence of 
          the following defective condition: Extensive damage to the walls 
          and ceilings throughout the apartment.

          The Rent Administrator denied the owner's rent restoration 
          application.


















          DG410163RO

          In its petition for administrative review, the owner states, in 
          substance, that the rent restoration application included invoices 
          from a restoration company which clearly demonstrates that the 
          leak, which formed the basis of the order, had been repaired.  The 
          owner further states that any leaks found during the May 17, 1989 
          inspection are new and different leaks.

          The DHCR served a copy of the petition on the tenant on October 26, 
          1989.  The tenant answered that the leaks are not new and different 
          and that the owner only initiates cosmetic work to cover the leaks 
          including replastering and painting but has never addressed the 
          underlying problem of water seepage.

          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 a rent reduction is 
          warranted.  The inspector's report of extensive leak damage 
          throughout the apartment confirms that the problem was not properly 
          corrected in an effective manner for which denial of the owner's 
          application was warranted.

          The Division's records reveal that a subsequent rent restoration 
          application was granted (DJ410195OR).

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

          ISSUED:


                                                                     
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  
    

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