Docket No. BK410229RT
                                    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.: BK 410229RT  

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
          George H. Kessler                       NO.: 7MBC00088M(7M07508M)
                                                  
          PETITIONER               
          ------------------------------------X


            ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW


              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 subject premises of the 
          petition is 153 West 57th Street, Apt. 3C, New York, New York.

              The issue in this proceeding is whether the Administrator's 
          order was correct.

              On appeal, the tenant argues that the Administrator's order 
          finding that the owner is eligible for a 1986-87 Maximum Base Rent 
          (MBR) increase is incorrect.  The tenant argues that the owner's 
          eligibility for a 1984-85 MBR increase was denied by the 
          Administrator.  According to the tenant, had the 1984-85 MBR 
          increase been granted, the maximum collectable rent (MCR) would've 
          been $275.37.  However, the tenant continues, since the 1984-85 MBR 
          increase was denied the actual MCR was $256.16.  Neverthless, the 
          owner "illegally" stated the MCR as $275.37 in applying for the 
          1986-87 MBR increase.  As evidence for his allegations, the tenant 
          includes with his petition a copy of an order allegally issued by 
          the Administrator on February 27, 1986 under the D.H.C.R. Docket 
          Number LC000189BC, which denies the establishment of 1984-85 MBR 
          because "claimant" has not submitted sufficient evidence that the 
          owner's rate of return on equity "exceeds or should exceed 8 1/2% 
          of the assessed value of the property."

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

              An examination of DHCR files reveals that the Administrator 
          granted the owner's eligibility to raise 1984/85 MBR rents under 
          Docket #LC000062RE on September 9, 1985.  The Commissioner finds 












          Docket No. BK410229RT

          that Administrator's order LC000189BC, which the tenant cites on 
          appeal in support of his contention that the owner was denied a 
          1984/85 MBR increase, did not despite its heading deny the owner 
          eligibility to increase 1984/85 MBRs.  Rather, this order is 
          actually an order denying the tenant's challenge to that 
          eligibility on the grounds that:

               "Claimant has not submitted sufficient documental 
               evidence that landlord's return of equity exceeds or 
               should exceed 8 1/2% of the assessed value of the 
               property."

              The Commissioner can understand how the tenant may have been 
          misled into believing that the above-captioned order represented a 
          finding by the Administrator that the owner should be denied 
          eligibility to increase MBRs for the 1984/85 cycle at the subject 
          premises.  An examination of the order nonetheless reveals that the 
          order was addressed only to the tenant.  The Commissioner is of the 
          opinion that this order "Denying Establishment of 1984/85 Maximum 
          Base Rents" is an order denying tenant's challenge to the owner's 
          eligibility for a 1984/85 MBR increase, apparently on the grounds 
          that the "claimant", did not submit "sufficient documental 
          evidence" to support his claim at challenge that the owner's return 
          on equity was too great to permit it to receive eligibility to 
          raise the MBR.

              The Commissioner notes that E.D.S. Management Corp., the owner 
          named in this proceeding, responded to the tenant's petition by 
          stating that it was no longer the owner of the subject premises.  
          As per DHCR records, the current owner of the subject premises is 
          153 W. 57th Associates.

              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
    

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