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

          APPEAL OF                               DOCKET NO.: EA220315RO

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO.: DJ220037BO (7MD04165K)
               TIME EQUITIES, INC.
                                   PETITIONER     PREMISES: 325 Clinton      
                                                  Avenue, various apartments,
          ------------------------------------X   Brooklyn, N.Y.


               The above-named owner filed a timely petition for 
          administrative review of an order issued concerning the housing 
          accommodations described above.

               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, DJ220037BO was 
          issued on December 22, 1989.  In that order, the Administrator 
          affirmed the finding of 7MD04165K 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 serve the Administrator 
          with an Affidavit of Service of the owner's eligibility to raise 
          the 1986/87 MBR upon the affected tenants of the subject premises.

               On appeal the owner contends that the Administrator's order is 
          invalid, since the Administrator's Final Order of Eligibility, 
          which was affirmed by DJ220037BO, was issued on October 4, 1989 
          under the Docket Number 7M04165K, revoked the owner's eligibility 
          on the grounds that the owner failed to respond to a delinquent 
          1986/87 MBR fee Notice mailed to the owner by the Administrator, 
          and that the first notice the owner saw of the Affidavit of Service 
          Issue was when it received DJ220037BO.  The owner submits a copy of 
          7M04165K as evidence of its contention.

          ADM. REVIEW DOCKET NO.: EA220315RO

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

               The Commissioner notes that the Administrator, in DJ220037BO 
          explicitly affirmed The Final Order Denying 1986/87 MBRs issued on 
          April 21,1989 under Docket Number 7MD04165K.  In both orders, the 
          reason for denial of MBRs is given as the owner's failure to submit 
          an Affidavit of Service upon either the Administrator or the 
          affected tenants.  However, as stated above, the owner submits a 
          copy of another Final Order Denying 1986/87 MBRs.  This order, 
          issued on October 4, 1989 under Docket Number 7M04165K, denies 
          eligibility to the owner based upon the owner's failure to respond 
          to a delinquent 1986/87 MBR Fee Revenue Notice served upon the 
          owner by the Administrator.

               An examination of the record reveals that both issues (failure 
          to submit an Affidavit of Service and failure to submit the Fee 
          Revenue Notice) were discussed in the proceeding below.  The 
          Commissioner notes that the owner, in both the Challenge proceeding 
          below and in the instant proceeding on appeal responded to the Fee 
          Revenue Notice contention by supplying evidence indicating timely 
          filing and payment.  The Commissioner further notes that the Fee 
          Revenue Notice issue was not subsequently raised by the 
          Administrator, either in the order under review herein (DJ220037BO) 
          nor in any other proceeding.  The Commissioner is therefore of the 
          opinion that the issue of timely payment of the MBR fee has been 
          settled in favor of the owner.

               As for the Affidavit of Service issue, the Commissioner notes 
          that a letter requesting service of the above-mentioned Affidavit 
          was submitted to the owner at the correct address on January 6, 
          1989 and that the owner never responded to this request.  There is 
          no evidence in the record suggesting that the owner never received 
          this letter nor does the owner make this argument on appeal.  
          Rather, the owner on appeal seems to disregard the existence of the 
          Administrator's Final Order which denied the MBR due to the 
          Affidavit of Service Issue.  The Commissioner notes that the 
          Administrator's request for an Affidavit of Service was mailed to 
          the owner on January 6, 1989 well over three months before the 
          issuance of the Administrator's Final Order.  The Commissioner 
          further notes that the owner did not argue, at Challenge or on 
          appeal that it had timely filed an Affidavit of Service.

               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 

          ADM. REVIEW DOCKET NO.: EA220315RO

          Administrator be, and the same hereby is, affirmed.


                                            JOSEPH A. D'AGOSTA
                                            Deputy Commissioner


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