Docket No. FK430345RO

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

          APPEAL OF                               DOCKET NO.: FK430345RO

                                                  DISTRICT RENT
          Serencha Realty Corporation             ADMINISTRATOR'S DOCKET
          c/o Aro Management, Inc.                NO.: DG420397BO(BL428824BR)


              The above-named owner filed a timely petition for 
          administrative review of an order issued concerning the housing 
          accommodations known as 362 West 52nd Street, Apartments #41 & 54, 
          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, DG420397BO was issued 
          on October 25, 1991.  In that order, the Administrator affirmed the 
          finding of BL428824BR issued June 22, 1989, that the owner be 
          denied eligibility for a 1988/89 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 

              On appeal, the owner states that "all rent-impairing violations 
          have been corrected .."  The owner submits a copy of its challenge 
          submitted below, in which the owner lists, by violation# various 
          violations which are cross-referred to copies of paid checks, 
          invoices, and/or tenant's statements which were submitted by the 
          owner to confirm its claims of repair.

              The Commissioner is of the opinion that the petition should be 

          Docket No. FK430345RO


              Section 2202.3(h) of the New York State Rent and Eviction 
          Regulations states that, in order to obtain eligibility to raise 
          MBRs at a given premises for a given cycle, the owner must certify 
          to the Administrator inter alia, that 100% of the rent-impairing 
          and 80% of the non rent-impairing violations of record against the 
          premises as of one year before the effective date of the order of 
          eligibility have been removed.  (The effective date is usually the 
          first day of the cycle.  In the instant proceeding, the record date 
          is January 1, 1987.)

              A List of Pending Violations reveals that, as of January 1, 
          1987 there were four rent-impairing and 47 non rent-impairing 
          violations outstanding against the subject premises.  Thus, to gain 
          eligibility to raise 1988/89 MBRs at the subject premises the owner 
          would have to certify to the Administrator that all of the rent- 
          impairing as well at least 38 (47 X 80%=37.6) of the non-impairing 
          violations had been removed.

              The Commissioner is of the opinion that the owner has failed to 
          meet this burden.  On appeal, the owner identifies 23 violations 
          which it claims were removed.  The Commissioner notes that none of 
          those violations were rent-impairing violations.  The Commissioner 
          also notes that, not withstanding the fact that the owner has 
          failed to remove any rent-impairing violations from the subject 
          premises, the owner has failed to remove a sufficient number of non 
          rent-impairing violations from the subject premises.

              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, and that the order of the Rent Administrator 
          be, and the same hereby is, affirmed.


                                             Joseph A. D'Agosta
                                             Deputy Commissioner

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