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  S.J.R. NO. 6897
      IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
      APPEAL OF                              DOCKET NO.: FL430302RO
                                          :  
      417 EAST 89TH STREET ASSOCIATES        RENT ADMINISTRATOR'S
      c/o ARO MANAGEMENT INC.                DOCKET NO.: CE430269OM
                            PETITIONER    : 
      ------------------------------------X                             

           ORDER AND OPINION REMANDING PETITION FOR ADMINISTRATIVE REVIEW

      On November 29, 1991, the above-named petitioner-owner timely filed an 
      administrative appeal against an order issued on October 25, 1991 by the 
      Rent Administrator concerning the housing accommodations known as 417 and 
      427 East 89th Street, New York, New York, various apartments, wherein the 
      Administrator denied a major capital improvement (MCI) rent increase for 
      the controlled and stabilized apartments in the subject premises for the 
      installation of a new boiler/burner at the premises based on the owner's 
      failure to respond to a final notice and submit information /evidence 
      required for the processing of the MCI application.

      Subsequent thereto, the petitioner-owner filed a petition in the Supreme 
      Court pursuant to Article 78 of the Civil Practice Law and Rules requesting 
      that the "deemed denial" of the petitioner's administrative appeal be 
      annulled.  The proceeding was then remitted, by stipulation, to the 
      Division for consideration of the petitioner's administrative appeal.

      In this petition the owner contends that all information requested was 
      submitted during the proceeding below.  In support thereof, the owner 
      submits a copy of its reply to said notice and a copy of a U.S. Postal  
      Service receipt as proof of mailing of same.

      Based thereon, the Commissioner finds that this proceeding should be 
      remanded to the Administrator for consideration of the owner's MCI 
      application.

      THEREFORE, in accordance with the Rent and Eviction Regulations and the 
      Rent Stabilization Law and Code, it is

      ORDERED, that this proceeding be, and the same hereby is, remanded to the 
      Rent Administrator for further consideration in accordance with this order 
      and opinion.  The Administrator's order is hereby revoked.                 
              

      ISSUED:



                                                                    
                                           JOSEPH A. D'AGOSTA
                                           Deputy Commissioner