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

          APPEAL OF                                    DOCKET NO.: FL420289RO

                    28th Street Investors Co.,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NO.: FD420189OR


          On December 24, 1991, the above-named petitioner-owner filed a 
          petition for administrative review of an order issued on November 
          25, 1991 by the Rent Administrator, concerning the housing 
          accommodation known as 137-139 East 28 Street, Apt. 6A, New York, 
          New York, wherein the Administrator denied the owner's application 
          to restore rent.

          Subsequent thereto, the owner proceeded to Court deeming its 
          petition denied.  The court remitted the matter to the agency with 
          a directive to render a determination on the PAR within 90 days of 
          February 16, 1994.

          The Commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issue raised by the administrative appeal.

          This proceeding was commenced by the filing by the owner of an 
          application to restore rent dated April 15, 1991.  The application 
          sought to restore a $4.50 rent reduction that had been ordered in 
          Docket No. CK420403S.  Although this rent reduction was revoked by 
          a Commissioner's order (Docket No. ED420139RO) a duplicate rent 
          reduction remained in effect and this restoration proceeding is 
          deemed to be an application to restore that rent reduction.

          An inspection conducted by DHCR staff inspector on October 7, 1991 
          found that the bathroom wall tiles had been improperly grouted.  


          This resulted in the Administrator's order of November 25, 1991 
          denying the owner's application on the basis that the tile repairs 
          were unworkmanlike.

          In the PAR, the owner states that inasmuch as the defect in the 
          bathroom wall tiles was concededly corrected, the unworkmanlike 
          finding for missing grouting is de minimis and should not warrant 
          the refusal to restore rent.  In addition, the owner states that it 
          should have been given an opportunity to cure the defect before the 
          application was denied.

          After careful consideration of the issues raised in the owner's 
          petition, the Commissioner is of the opinion that the petition 
          should be denied.

          The report of inspection dated October 7, 1991, by an employee of 
          the Division who is not a party to the proceeding, was properly 
          placed in the record for consideration by the Administrator.  The 
          Commissioner finds that it was proper for the Administrator to rely 
          on the report of inspection in determining that the repairs had not 
          been completed in a workmanlike manner.

          Policy Statement 90-2 issued February 21, 1990 states the 
          Division's policy with respect to rent restoration.  When the 
          condition has not been corrected in a workmanlike manner, the rent 
          shall not be restored until all such work has been completed.

          Lastly, due process neither requires that the owner be given notice 
          of the results of inspection nor an opportunity to cure before an 
          order is issued.

          THEREFORE, in accordance with the City Rent Law, and the Rent and 
          Eviction Regulations, 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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