ADM. REVIEW DOCKET NO.: EE230197RO

                                  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.: EE230197RO

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
            LEDE INT. REALTY CORP.                NO.: DJ220001BT
            C/O LOUIS GALPERN                          (BL221236BR)
                                   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 8001 Bay Parkway, various apartments, 
          Brooklyn, N.Y.

               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, DJ220001BT was 
          issued on April 13, 1990.  In that order, the Administrator revoked 
          the finding of BL221236BR, issued June 30, 1989, that the owner be 
          granted eligibility for a 1988/89 Maximum Base Rent (MBR) increase, 
          due to the owner's meeting the violation certification requirements 
          necessary to the owner's being granted an MBR increase.

               On appeal, the owner contends that it has cleared a sufficient 
          number of violations from the subject premises in order to gain for 
          itself eligibility to raise MBRs at the subject premises for 
          1988/89, but that the cleared violations were not "taken off (this 
          Agency's) computer."  The owner also alleges that various 
          violations do not exist at all but are a result of "hearsay" spread 
          by the tenants.

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















          ADM. REVIEW DOCKET NO.: EE230197RO



               Pursuant to Section 2202.3(h) of the New York City Rent and 
          Eviction Regulations an owner, in order to receive eligibility to 
          raise MBRs at a given premises for a given cycle must certify to 
          the Administrator that, by six months before the effective date of 
          the order of eligibility 100% of the rent-impairing and 80% of the 
          non rent-impairing violations of record against the subject 
          premises as of one year before the effective date have been 
          cleared.

               In the instant proceeding the effective date of the 
          Administrator's order is January 1, 1988.  Therefore, six months 
          before the effective date (the "deadline" for violation clearances) 
          is July 1, 1987 and one year before the effective date is January 
          1, 1987.

               A List of Pending Violations (LPV) discloses that, as of 
          January 1, 1987 there were three rent-impairing and 45 non rent- 
          impairing violations outstanding against the subject premises.  
          Therefore, in order to gain eligibility to raise MBRs at the 
          subject premises for the 1988/89 cycle the owner in this proceeding 
          was obligated to certify to the clearance of all of the rent- 
          impairing and at least 36 (80% x 45 = 36) of the non rent-impairing 
          violations.

               On April 27 and November 3, 1989, the New York City Department 
          of Housing Preservation and Development (HPD) conducted an 
          inspection of the subject premises.  These inspections revealed 
          that the owner had failed to clear a sufficient number of 
          violations from the subject premises in order to gain eligibility 
          to raise MBRs at the subject premises for the 1988/89 cycle.

               The Commissioner notes that these inspections were conducted 
          approximately two years after the July 1, 1987 "deadline," as of 
          which the owner was required to certify to violation clearance, had 
          elapsed.

               The Commissioner notes that the HPD inspections disclosed that 
          the owner had cleared one rent-impairing and ten non rent-impairing 
          violations from the subject premises.  The Commissioner is thus of 
          the opinion that the owner's allegation on appeal of "computer 
          error" cannot stand.  The Commissioner further notes that, on 
          appeal the owner has failed to suggest why the DHCR computer might 
          remove some violations from the record, yet leave others.

               As to the owner's allegation on appeal that the persistence of 
          various violations was due to tenant "hearsay":










          ADM. REVIEW DOCKET NO.: EE230197RO

               The Administrator's grant (or denial) of eligibility is 
          determined by the owner's clearance of violations which are listed 
          on the LPV.  The LPV in turn, is compiled from the findings of HPD 
          inspections, such findings arising from the objective observation 
          of conditions at the subject premises by HPD personnel.

               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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