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

          APPEAL OF                              DOCKET NO. BC 410066 RO
                                              :  DRO DOCKET NO. 7M11106M
               PRIME APPLE ASSOCIATES                           7MI 11106M

                                PETITIONER    : 

               On March 6, 1987, the above-named petitioner-landlord filed a 
          Petition for Administrative Review against an order issued on 
          February 25, 1987, by the Director, MBR Unit, 91 Lawrence Street, 
          Brooklyn, New York, concerning the housing accommodations known as 
          645 Second Avenue, New York, New York, all rent controlled 

          The Administrative Appeal is being determined pursuant to the 
          provisions of 9NYCRR 2201.4

          The issue herein is whether the landlord is entitled to 1986- 
          87 Maximum Base Rent (hereafter MBR) increases.

          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.  

          The Director's order, appealed herein, revoked the Interim 
          Order of Eligibility for 1986-87 MBR increases.

          This order was based upon a finding that the landlord failed 
          to meet the violation certification requirements in order to 
          qualify for MBR increases and a finding that the landlord also 
          failed to register the subject premises with the D.H.C.R.

          In this petition, the landlord alleges in substance that it 
          bought the subject premises without knowing that the prior owner 
          had not registered; that it has now registered the subject 
          premises and that it removed the required number of violations as 
          of January 1, 1987.

          In answer to the landlord's petition, several tenants alleged 
          in substance that the Director's order was warranted.

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

          BC 410066 RO

          Procedures established under the Rent Law and Regulations 
          provide, among other things, that no rent increases may be 
          authorized under the MBR program commencing January 1, 1986, 
          unless the landlord has removed all of the "rent impairing"  
          violations (as defined in the multiple dwelling law, Section 302a) 
          and at least 80% of al other violations on record as of January 1, 
          1985, or six months prior to the filing of the 1986-87 violation 
          certification, whichever is later.

          In the instant case, the record discloses that as of January 
          1, 1985, there was one"rent impairing" and 17 "non rent impairing" 
          violations against the subject premises and therefore the landlord 
          was required to remove the one "rent impairing" and 14 (80%) of 
          the "non rent impairing" violations in order to obtain 1986-87 MBR 
          increases.  the record further indicates that on July 6, 1987, and 
          on July 13, 1987, the subject building was visited by inspectors 
          of the Office of Code Enforcement who visually inspected the 
          relevant violations.  They reported that the one "rent impairing" 
          violation and 11 of the "non rent impairing" violations (rather 
          than the required 14 (80%) had been removed.  The fact that the 
          landlord may now have registered the subject premises does not 
          relieve the landlord of its obligation to timely remove the 
          required violations.  Accordingly, the Director's order denying 
          the 1986-87 MBR increases was warranted.

          THEREFORE, in accordance with the provisions of the Rent and 
          Eviction Regulations for New York City, it is

          ORDERED, that this petition for administrative review be, and 
          the same hereby is, denied, and, that the order of the Director 
          be, and the same hereby is, affirmed.


                                          ELLIOT SANDER
                                          Deputy Commissioner



                                COVERING MEMORANDUM

          ARB Docket No.: BC 410066 RO

          DRO Docket No/Order No.: 7M 11106M, 7MI 11106M

          Tenant(s): Various

          Owner: Prime Apple Associates

          Code Section: 2201.4 of the Rent and Eviction Regulations

          Premises: 645 Second Avenue, New York, New York, various 


          Order and Opinion Denying Petition                                 

          Petition denied on  basis landlord did not remove required 

          number of violations so denial of 1986-87 MBR increases was 


          Processing Attorney:                                             

          Supervising Attorney:                                            


          Deputy Commissioner:                                             

          Mailed copies of Order and Determination to:

            Tenant's Atty             

            Owner's Atty              

            Date:              :  by               





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