Docket No. EB520277RO
                             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.: EB520277RO 
       

     Riverside Management Co.  c/o           DISTRICT RENT
     Rosenberg & Estis, P.C. by              ADMINISTRATOR'S DOCKET
     Blaine Z. Schwadel, Esq.                NO.: DE520049BO(7MB01646M)
      
                              PETITIONER
     ------------------------------------X


           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW



         The above-named owner filed a timely petition for administrative 
     review of an order issued concerning the housing accommodations known as 
     160 Claremont Avenue, Various Apartments, New York, 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, DE520049BO was issued on 
     January 12, 1990.  In that order, the Administrator affirmed the finding 
     of 7MD01646M issued April 21, 1989, that the owner be denied eligibility 
     for a 1986/87 Maximum Base Rent (MBR) increase, due to the owner's failure 
     to timely submit to the Administrator an Affidavit of service, said 
     Affidavit testifying that the owner had served upon the affected tenants 
     notice of its eligibility to collect 1986/87 MBR increases.

         On appeal, the owner argues that the Administrator's order is in 
     error, inasmuch as, in response to a letter from the Administrator 
     requesting submission of the Affidavit of service, the owner explained 
     that it had never received a copy of the order of eligibility.  The owner 
     concluded the letter by requesting advice from the Administrator and 
     states on appeal that such advice was not forthcoming but that the 
     Administrator instead revoked the owner's eligibility for a 1986/87 MBR 
     increase on the grounds that the owner had not submitted an Affidavit of 
     service.  The owner also charges that the D.H.C.R., by the order under 
     appeal "exalts 












          Docket No. EB520277RO

     form over substance."

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

         On September 18, 1986, under docket #7MI01646M the Administrator 
     granted the owner interim eligibility to raise the 1986/87 MBRs at the 
     subject premises.  This eligibility was granted on a conditional basis.  
     One of those conditions was service of the order upon the affected 
     tenants.  As the owner did not serve the order upon the tenants (the 
     affidavit of service would certify same), the Commissioner is of the 
     opinion that the Administrator was correct in denying owner's eligibility 
     for a 1986/87 MBR increase at the subject premises.

         An examination of the record below reveals that all papers served upon 
     the owner by the Administrator were properly addressed, either to the 
     owner or to the owner's counsel.

         As for owner's argument on appeal that the Administrator's order 
     "exalts form over substance":  The purpose of service of owner's 
     eligibility to raise MBR's allows tenants the opportunity to learn of the 
     basis of their rent increase and to thus challenge its correctness, if 
     necessary.  D.H.C.R. administers rent regulations in New York City 
     pursuant to legislation.  Although this legislation does not specify each 
     detail of the D.H.C.R.'s responsibilities (i.e., the 60 day service 
     period), the legislation does give the D.H.C.R. authority to enact and 
     enforce various procedural rules to aid it in the administration and 
     enforcement of rent regulation rules and policy.  The D.H.C.R's authority 
     to enact such procedures has been supported by various court decisions.

         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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