ADM. REVIEW DOCKET NO.: EH430181RO
                                  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.: EH430181RO 

               MOTT AND PRICE SERVICE CORP.       DISTRICT RENT
               C/O KUCKER KRAUS AND BRUH          ADMINISTRATOR'S DOCKET
                                                  NOS.: DF430045RO
                                                        7MI-4556M
                                   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 181 East Broadway, N.Y.C. 10002.

               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, DF430045BO was 
          issued on July 13, 1990.  In that order, the Administrator affirmed 
          the finding of 7MD04556 issued May 5, 1989, that the owner be 
          denied eligibility for a 1986/87 Maximum Base Rent (MBR) increase, 
          due to the owner's failure to meet the violation certification 
          requirements necessary to the owner's being granted an MBR 
          increase.

               On appeal, the owner argues that the Administrator's order is 
          in error, inasmuch as, that the owner had never received a copy of 
          the Final Order of eligibility, and therefore failed to submit an 
          affidavit of service upon the tenants of the final order of 
          eligibility.

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


















          ADM. REVIEW DOCKET NO.: EH430181RO

               On January 28,1987, under Docket #7MI04556M, 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 these 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.

               On appeal, and at challenge below, the owner has sought to 
          prove its timely receipt and service of the January 28, 1987 
          interim order.  This matter is not at issue in the instant 
          proceeding.  At issue is whether or not the owner timely received 
          the Administrator's Order of Eligibility 7MI04556M, issued by the 
          Administrator on January 28, 1987, said order granting the owner 
          eligibility to raise 1986/87 MBRs at the subject premises, subject 
          to the owner's timely serving of the order upon the affected 
          tenants at the subject premises.

               The owner has not presented any proof either before the 
          Commissioner or before the Administrator that it did not receive 
          the June 29, 1988 order on a timely basis, nor that it received the 
          order for the first time on a later date.  An examination of the 
          file reveals that the June 29, 1988 order was addressed to the 
          owner at its address of record as of both the mailing and issue 
          dates.

               The purpose of service of owner's eligibility to raise MBRs 
          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 N.Y.C. pursuant to 
          legislation.  Although this legislation does not specify each 
          detail of 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.

               The Commissioner is, therefore, of the opinion that inasmuch 
          as the January 28, 1987 order granted eligibility to raise MBRs 
          subject to the timely service of this order upon the affected 
          tenants, and that the owner has admittedly failed to make such 
          timely service, and that the owner has alternatively failed to 
          prove late and/or no mailing of the order by D.H.C.R. or rebut the 
          Commissioner's assumption of timely mailing by D.H.C.R., the 
          Administrator was correct and this petition should be denied.


               THEREFORE, in accordance with the provisions of the Rent and 
          Eviction Regulations, it is 






          ADM. REVIEW DOCKET NO.: EH430181RO


               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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