DOCKET NO.:  DA420048RT
                              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. DA420048RT
                                           :   DISTRICT ADMINISTRATOR'S
               RICHARD TRACHTMAN,              DOCKET NO. BL427972BR
                                           :             
                            PETITIONER     
     --------------------------------------X

          
            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     The above-named tenant filed a timely petition for administrative review of 
     an order issued concerning the housing accommodations known as 87 Barrow 
     Street, Apt. 5B, New York, NY.

     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 issue before the Commissioner is whether the Administrator's order was 
     correct.

     The Administrator's order being appealed, BL427972BR was issued on November 
     14, 1988.  In that order, the Administrator found that the owner should be 
     granted eligibility for a 1988/89 Maximum Base Rent (MBR) increase.

     On appeal the tenant alleges that, as of the effective date of the order 
     being appealed herein (January 1, 1988), there was an order of rent reduction 
     outstanding against the subject premises.  As such, the tenant contends that 
     the Administrator was in error in granting the owner eligibility to raise 
     MBRs at the subject premises.  The order is dated January 5, 1987.

     The Commissioner is of the opinion that this petition should be denied.

     The fact that there is a previous rent-reducing order outstanding against a 
     premises does not bar the Administrator from granting eligibility to the 
     owner of the premises from raising MBRs at the premises; rather, it bars the 
     owner from collecting those rent increases from the subject tenant(s) until 
     the issuance of an order restoring rent at which time the increased rent is 
     collectible prospectively only.

     An examination of the record discloses that on November 9, 1989 the 
     Administrator issue an order of rent restoration under docket # DE420039OR.  
     The Commissioner is thus of the opinion that the owner is eligible to collect 
     increased rent, as of the December 1, 1989 rent payment only.










          DOCKET NO.:  DA420048RT

     THEREFORE, in accordance with the provisions of the Rent and Eviction 
     Regulations, it is 

     ORDERED, that this petition for administrative review be, and the same hereby 
     is, denied, and that the order of the Rent Administrator be, and the same 
     hereby is, affirmed.  

     The owner is directed to refund to the tenant those portions of all rent 
     payments made by the tenant from January 1, 1988 through November 1, 1988 
     inclusive representing increase in the 1988/89 MBR.  This refund is to be 
     made in a single lump sum, within thirty (30) days from the date of this 
     Order.

     ISSUED:


                                                                               
                                                     JOSEPH A. D'AGOSTA
                                                     Deputy Commissioner