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

          APPEAL OF                                    DOCKET NO.:
                    Cape Management Corp.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.:

                                ADMINISTRATIVE REVIEW

          The above-named owner filed a timely petition for administrative 
          review of an order issued on June 28, 1989 concerning the housing 
          accommodation known as 899 Montgomery Street, Apartment T-1, 
          Brooklyn, New York, wherein the Rent Administrator determined the 
          tenant's complaint of decreased services.

          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 tenant commenced this proceeding by filing a complaint 
          asserting that the owner had failed to maintain certain services in 
          the subject apartment.

          In an answer, the owner denied the allegations set forth in the 
          complaint or otherwise asserted that all required repairs had been 
          completed or that all required services were provided.

          Thereafter, the DHCR conducted an inspection of the subject 
          apartment.  The DHCR inspector observed mildew on the walls and 
          ceiling of a bedroom and evidence of roach and rodent infestation 
          in the kitchen.  Other conditions cited in the complaint were not 

          The Rent Administrator directed restoration of these services and 
          further, ordered a reduction of the stabilization rent.
          In this petition for administrative review, the owner, in 
          substance, contends that the inspection conducted almost a year 


          after the complaint was filed and after the owner painted the 
          apartment, and which found that the bedroom had mildewed walls and 
          ceiling, was not a proper basis for a rent reduction.  The owner 
          also reiterates that apartments are exterminated on a permanent 
          monthly basis and asserts that the tenant's apartment "had a 
          special service on June 9, 1988 ...." at the tenant's request.

          After careful consideration, the Commissioner is of the opinion 
          that the petition should be granted, in part.

          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 

          The Commissioner finds that, as the complaint failed to cite the 
          mildew condition, and that as no condition cited was the  proximate 
          cause thereof, the mildew condition must be revoked as a predicate 
          for the rent reduction, as the owner did not have notice of the 
          condition until receipt of the Rent Administrator's order.

          However, the owner's petition does not establish any further 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 conditions in the subject apartment for which a rent 
          reduction is warranted.

          The record reflects that the owner made a good faith effort to 
          exterminate.  Notwithstanding that the record shows that the owner 
          provided periodic exterminator services over a period of time, and 
          provided special exterminator services on at least one occasion, 
          the services were not effective.  This was confirmed by the 
          inspection, which revealed that there remained evidence of 

          Division records also indicate that the Rent Administrator issued 
          an order on January 29, 1990 under DG210043OR, denying the owner's 
          rent restoration application, and that this determination was not 

          The rent will be restored only when an owner's application to 
          restore rent is filed and granted.

          The automatic stay of the retroactive rent abatement that resulted 
          by the filing of this petition is vacated upon issuance of this 
          order and opinion.
          THEREFORE, in accordance with the Rent Stabilization Law and Code, 
          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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