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

          -------------------------------------X   SJR NO.  6998
          APPEAL OF                                DOCKET NO.:  HA210155RO 
                    GAYLE REALTY CORP
                                                   RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  FJ210096OM



          The above named petitioner-owner timely filed a petition for 
          administrative review (PAR) against an order issued on December 18,  
          1992, by the Rent Administrator (Gertz Plaza) concerning the 
          housing accommodations known as 156 East 54th Street, Brooklyn, NY, 
          various apartments, wherein the Rent Administrator denied the 
          owner's application for a major capital improvement (MCI) rent 
          increase.  All of the apartments at the subject premises are rent 

          Subsequent thereto, the petitioner filed a petition in the Supreme 
          Court pursuant to Article 78 of the Civil Practice Law and Rules 
          requesting that the "deemed denial" of it's Administrative Appeal 
          be annulled.  

          Pursuant to a stipulation of settlement, so ordered by the Court, 
          which was entered into by the petitioner and the Division on 
          September 24, 1993, the proceeding was remitted to the Division for 
          an expeditious determination of this Administrative Appeal.

          The owner initiated this proceeding on October 24, 1991, by filing 
          an application for an MCI rent increase predicated on various 
          improvements performed at the subject premises at a total claimed 
          cost of $42,497.07.  Said application was denied on the grounds 
          that the owner/applicant failed to file the application within two 
          years from the completion dates of the installations.

          ADMIN. REVIEW DOCKET NO. HA-210155-RO

          In this petition for Administrative Review, the owner requests a 
          reversal of the Rent Administrator's order and contends, in 
          substance, that the owner did attempt to file a timely application 
          but was unable to do so by fault of the Division and E F Kennedy 
          Associates, an agency commissioned to complete such service; that 
          on June 20, 1986, the owner called the Division to inquire as to 
          the proper procedure required for an MCI application and a 
          representative of the Division misinformed the owner by stating 
          that despite the fact that the procedure requires filing such an 
          application within two years from the completion date of the 
          installation, such an application cannot be filed until the loan on 
          the installation is fully paid; that the owner was told that she 
          should therefore file the application on June 17, 1989, the date 
          the mortgage would be completely paid off; that on June 17, 1989, 
          the owner commissioned E F Kennedy Associates to file the MCI 
          application with the Division but inquires to the Division in June 
          1991 revealed that said application was never submitted; that 
          thereafter the owner personally submitted the MCI application to 
          the Division; and that the Administrator's order as it stands 
          illegally and unfairly penalizes the owner for the error of the 
          Division and the negligence of E F Kennedy Associates.

          After a careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that this Administrative Appeal 
          should be denied.

          Regarding the owner's contention that the application was not filed 
          in a timely manner due to misinformation given by an employee of 
          the Division, the Commissioner finds that this unsubstantiated 
          allegation that the owner spoke to a representative of the 
          Division, who is unidentified, is both self serving and 
          inconclusive.  Furthermore, the owner is charged with knowledge of 
          the law and may not rely on a claim of oral misinformation received 
          from any representative of the Division to evade the requirements 
          of the law.


          ADMIN. REVIEW DOCKET NO. HA-210155-RO

          With respect to the owner's contention that due to the negligence 
          of E F Kennedy Associates, the application was not filed in June 
          1989, the Commissioner notes that although the owner submitted 
          evidence (cancelled check for $600.00) that there was an 
          arrangement between herself and this entity, the Division's records 
          nonetheless disclose that there was no application filed in 1989 
          for the subject building.  This matter is an issue between the 
          owner and E F Kennedy Associates and does not involve the Division.

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

          ORDERED, that this petition be, and the same hereby is denied; and 
          that the Rent Administrator's order be, and the same hereby is 


                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner



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