ADM. REVIEW DOCKET NO.: EE420124RT

                                  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.: EE420124RT 

                                                  DISTRICT RENT
              CHARLES SCARRATT                    ADMINISTRATOR'S DOCKET
                                                  NOS.: CL420049BT,
                                                        BL427027BR
                                   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 520 Ninth Avenue, N.Y.C. 10018, Apt. 2.

               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, CL420049BT was 
          issued on March 30, 1990.  In that order, the Administrator 
          affirmed the finding of BL427027BR issued October 28, 1988, that 
          the owner be granted eligibility for a 1988/89 Maximum Base Rent 
          (MBR) increase.

               On appeal, the tenant contends that the Administrator was in 
          error in granting eligibility, due to the fact that an order 
          finding a decrease in service at the subject premises and thus 
          directing a rent reduction was outstanding as of the effective date 
          of the Administrator's order being appealed herein.

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



















          ADM. REVIEW DOCKET NO.: EE420124RT

               The fact that there is a rent-reducing order outstanding 
          against the subject premises does not bar the owner of those 
          premises from eligibility to raise MBRs.  The owner is, however, 
          barred from collecting the MBR increase pending the issuance of an 
          order of rent restoration, at which time the MBR increase becomes 
          collectible prospectively only.

               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. 

          ISSUED:






                                                                          
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner