GF410065RO, GF410135RO
                                  STATE OF NEW YORK
                      DIVISION OF HOUSING AND COMMUNITY RENEWAL
                            OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                                  JAMAICA, NY 11433





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          IN THE MATTER OF THE ADMINISTRATIVE          ADMINISTRATIVE REVIEW
          APPEALS OF                                   DOCKET NOS.:
                                                       GF410065RO
                                                       GF410135RO
                    Caroline Gaertner,
                                                       RENT ADMINISTRATOR'S
                                                       DOCKET NOS.:
                                                       GB410310S
                                                       GC410089S

                                   PETITIONER
          ------------------------------------x


            ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW

          On June 12, 1992 and June 19, 1992, the above-named petitioner- 
          owner filed petitions for administrative review (PAR) of orders 
          issued on May 18, 1992 and May 20, 1992, by the Rent Administrator, 
          concerning the housing accommodations known as 200 East 7th Street, 
          New York, N.Y., Apt. #5 and Apt.#8, wherein the Administrator 
          established the rent for the subject apartments at $1.00 per month 
          as of January 16, 1992, the date a fire caused the tenants to 
          vacate involuntarily.

          The Commissioner has consolidated these two petitions as they 
          involve common questions of law and fact.

          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 appeals.

          The issue herein is whether the Rent Administrator properly 
          determined that the rent for the subject apartments should be 
          established at $1.00 per month pursuant to Section 2522.6 of the 
          Rent Stabilization Code.




          These proceedings were commenced on February 14, 1992 and March 1, 
          1992, when the tenants filed complaints in which they stated that 












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          a fire on January 16, 1992 damaged their apartments so seriously 
          that they are unable to live in them.

          The owner filed an answer to the complaints alleging, in pertinent 
          part, that she does not have enough money to make all major repairs 
          or to engage in major construction.

          A DHCR inspection conducted on April 20, 1992, revealed that there 
          was no access to the building due to major fire damage; that the 
          roof collapsed; that the building was barricaded by the police 
          department and that the building appeared to be empty.

          On appeal, the petitioner-owner asserted, in pertinent part, that 
          the Rent Administrator issued the appealed orders in error; that 
          the tenants cannot be located because they failed to provide their 
          current addresses; that the tenants should not be restored to 
          occupancy and that their leases should be cancelled.

          After a careful consideration of the entire evidence of record the 
          Commissioner is of the opinion that the administrative appeals 
          should be denied.

          The rent was established at $1.00 in order to maintain the 
          landlord/tenant relationship between the parties while the 
          apartments were uninhabitable and the tenants were obliged to live 
          elsewhere.  In the event the apartments are restored to a habitable 
          condition, the tenants retain the right to possession unless the 
          landlord/tenant relationship has been terminated voluntarily or by 
          a court of competent jurisdiction.  The Division does not have the 
          authority to cancel leases in such situations.

          The Commissioner also finds that based on the results of an 
          impartial inspection, which showed that the subject building had 
          suffered major fire damage and was completely uninhabitable, as of 
          April 20, 1992, and the owner's admission that this occurred, the 
          Rent Administrator properly established the rent at $1.00 per 
          month.

          The owner is advised to file a restoration application wherein the 
          rent will be restored to the pre-fire amount in the event the 
          apartments are restored to their pre-fire condition and the tenants 
          are restored to possession if they so desire.  As to apartment #8, 
          the Commissioner notes that the owner obtained a final Civil Court 
          order to recover the premises from the tenant, under Index No. 
          104190/91, due to non-payment of rent.


          THEREFORE, in accordance with the provisions of the Rent 
          Stabilization Law and Code, it is

          ORDERED, that these petitions be, and the same hereby are, denied, 






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          and the Administrator's orders be, and the same hereby are, 
          affirmed.           
                    


          ISSUED:






                                                                     
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner