Docket No. DE220328RO

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

          APPEAL OF                               DOCKET NO.: DE220328RO 

                                                  DISTRICT RENT
          San Properties                          ADMINISTRATOR'S DOCKET
          c/o Kucker Kraus & Bruh                 NO.: 7MD04257(7M04257K)


              The above-named owner filed a timely petition for 
          administrative review of an order issued concerning the housing 
          accommodations know as 1320 Coney Island Avenue, Various 
          Apartments, Brooklyn, New York.

              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 issue before the Commissioner is whether the 
          Administrator's order was correct.

              The Administrator's order being appealed, 7MD04257 was issued 
          on April 21, 1989.  In that order, the Administrator revoked the 
          finding of 7M04257K issued September 30, 1988, that the owner be 
          granted eligibility for a 1986/87 Maximum Base Rent (MBR) increase, 
          due to the owner's failure to submit to the Administrator Affidavit 
          of Service regarding the above-cited Order of Eligibility.

              On appeal, the owner submits various evidence including a copy 

          Docket No. BK130362RO

          of the Affidavit of service, the signatures of the affected tenants 
          testifying that they had been served with copies of the Notice of 
          the owner's eligibility to raise rents, and a copy of a return 
          Reciept, signed as received by the D.H.C.R. in timely fashion.

              The Commissioner is of the opinion that this appeal should be 

              The owner has produced sufficient documentation ot prove that 
          the Affidavit of service was served upon the D.H.C.R. in timely 

              The Commissioner notes that Administrator's order ZAG220356S, 
          which found a decrease in services in apartment 3C, ordered the 
          owner to reduce the rent by 10% for rent-controlled tenant of that 
          apartment.  The Commissioner further notes that this order was 
          issued on February 11, 1987 and that in an order issued on April 
          23, 1990 under docket number ZDF220450R the Administrator found 
          that the owner had not repaired the reductions in service cited in 
          ZAG220356S.  The Commissioner is thus of the opinion that a rent 
          reduction order was outstanding against an apartment of the subject 
          premises at the time of the issuance of the Administrator's order, 
          and that the rent reducing order remains outstanding as of the 
          issue date of the Commissioner's order, apartment 3C shall be 
          exempt from the provisions of the Commissioner's order.

              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 granted in part, and that the order of the Rent 
          Administrator be, and the same hereby is, revoked.  The owner is 
          thereby found eligible for the 1986/87 MBR increase, subject to the 
          terms and conditions listed on the attached sheet. 

              The rent controlled tenant of apartment 3C is, as noted above, 
          exempted from this rental adjustment.  Upon a finding of 
          restoration of services, the MBR of the rent controlled tenant of 
          apartment 3C is to be increased prospectively only.


                                             Joseph A. D'Agosta
                                             Deputy Commissioner   

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