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

          APPEAL OF                               DOCKET NO.:              
            1010 EAST TREMONT REALTY CORP.,
                                                  RENT ADMINISTRATOR'S
                                                  DOCKET NO.:
                                   PETITIONER     BK610028OR


          The above-named petitioner-owner filed a timely petition for 
          administrative review (PAR) of an order issued concerning the 
          housing accommodation known as 1010 East Tremont Avenue, Apartment 
          E-3, Bronx, New York.

          The commissioner has reviewed all of the evidence in the record and 
          has carefully considered that portion of the record relevant to the 
          issues raised by the petition.             

          The owner commenced the proceeding on November 12, 1987 by filing 
          an Application for Rent Restoration wherein it alleged that it had 
          restored services for which a rent reduction order bearing Docket 
          No. BC610369S had been issued wherein the owner was directed to 
          correct the problem of mildew in the bathroom and southwest bedroom 
          and the defective toilet seat.  The tenant was served with a copy 
          of the application and was afforded an opportunity to respond.  The 
          tenant stated that the mildew had not been totally cleared.

          Thereafter an inspection of the subject apartment was conducted by 
          a Division of Housing and Community Renewal (DHCR) inspector on May 
          11, 1988, who confirmed the existence of the following defective 

                    Mildew exists in the bathroom and Southwest 

          The Rent Administrator denied the owner's rent restoration appli- 


          In its petition for administrative review, the owner states, in 
          substance, that all defective conditions that existed were repaired 
          on November 3, 1987, including repairs to items that were not part 
          of the tenant's complaint.  Although on May 11, 1988, an inspector 
          found evidence of mildew in the bedroom and bathroom, the owner 
          asserts that the condition is of a reoccurring nature and the ini- 
          tial problem was corrected in 1987 but because the inspection was 
          delayed for six months, the condition reoccurred.  The owner 
          contends that the condition found by the inspector was a new 
          condition of which the owner had no notice and that the rent should 
          have been partially restored because the defective toilet seat had 
          been repaired.

          The DHCR served a copy of the petition on the tenant on September 
          2, 1988.

          After careful consideration, the Commissioner is of the opinion 
          that the petition should be denied.

          Pursuant to Section 2523.4 of the Rent Stabilization Code, a rent 
          reduction to the level in effect prior to the most recent guideline 
          adjustment is warranted based on a finding that the owner has 
          failed to maintain required services and remains in effect until it 
          is established that all services are restored.  The owner's peti- 
          tion does not establish any basis for modifying or revoking the 
          Administrator's order which determined that the mildew condition 
          still existed.  The Rent Stabilization Code requires restoration of 
          all conditions that an owner has been directed to restore before 
          rent restoration can be granted. The inspector's report of a mildew 
          condition confirms that the problem was not properly corrected in 
          an effective manner for which denial of the owner's application was 

          The Division's records reveal that a subsequent rent restoration 
          application was granted (DJ610197OR).

          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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