Docket No. HK430005RP(EK430306RO)



                                    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. 7086
          IN THE MATTER OF THE ADMINISTRATIVE     ADMINISTRATIVE REVIEW
          APPEAL OF                               DOCKET NO. HK430005RP  
                                                            (EK430306RO)    
                                                       
                                                  DISTRICT RENT             
          PARCEL 242 INC.,                        ADMINISTRATOR'S DOCKET
                                                  NO. DF420033BO(7MD03202M) 
           
                                   PETITIONER
          ------------------------------------X



            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW



               On November 30, 1990, the above-named landlord filed a 
          petition for administrative review of an order issued on November 
          2, 1990 by a Rent Administrator concerning various housing 
          accommodations in the premises known as 242 East 72nd Street, New 
          York, New York.

               On June 10, 1993, the Commissioner issued an order and opinion 
          denying the landlord's petition, under Docket No. EK430306RO.

               Subsequently, the landlord commenced a proceeding in the 
          Supreme Court of the State of New York pursuant to Article 78 of 
          the Civil Practice Law and Rules, seeking review of the above- 
          mentioned Commissioner's order.

               After considering the Article 78 petition, the Court issued an 
          order remitting the proceeding to the New York State Division of 
          Housing and Community Renewal (D.H.C.R.) for further consideration.

               The rent agency redocketed the proceeding under Docket No. 
          HK430005RP.

               The Commissioner has reviewed all of the evidence in the 
          record and has carefully considered that portion of the record 
          relevant to the issues raised by the petition for administrative 












          Docket No. HK430005RP(EK430306RO)

          review.

               The Administrator issued an "Interim Order" on March 10, 1987 
          under Docket No. 7MI03202M which granted the landlord maximum base 
          rent (M.B.R.) increases for the 1986-1987 period effective January 
          1, 1986.

               The Administrator mailed a final order on June 29, 1988 under 
          Docket No. 7M03202M which granted the landlord M.B.R. increases for 
          the above-mentioned period.  The above-mentioned order noted that 
          the landlord is not eligible for an increase in the M.B.R. unless 
          the landlord, among other things, served a copy of the final order, 
          within sixty days of the aforementioned mailing date, "on all 
          affected tenants" by either first-class mail with official proof of 
          mailing,or by personal delivery with an acknowledgement of the 
          tenant; and that the landlord submit to the D.H.C.R. an affidavit 
          of service noting the date of service on the tenants.

               In a notice mailed to the subject landlord on February 1, 
          1989, the Administrator stated that:  "As a result of owner's 
          failure to provide DHCR with an Affidavit of Service to tenants of 
          the Final Order of Eligibility-Maximum Base Rent 1986-1987, copy 
          attached, the Rent Administrator proposes to re-open the above 
          docket."

               The Administrator issued an order on May 5, 1989 under Docket 
          No. 7MD03202M which revoked the above-mentioned final and interim 
          M.B.R. order of eligibility for the 1986-1987 period as the 
          Administrator determined that the landlord did not submit, as 
          required, the aforementioned affidavit of service.

               On June 7, 1989, the subject landlord filed a challenge to the 
          above-mentioned Administrator's order.  In its challenge the 
          subject landlord stated, among other things, that:

               The 'Order of Eligibility' was not received until 
               February 1989, when the owner received DHCR's Notice 
               dated Feb. 1, 1989 inquiring about whether the 'Order of 
               Eligibility' had been served.  At that time the owner 
               immediately served the 'Order of Eligibility' upon all of 
               the Rent Controlled Tenants by certificate of mailing and 
               prepared an affidavit of such service for submission with 
               copies of the postal proof of mailing upon the DHCR.

               To its challenge the subject landlord attached, among other 
          things, a copy of the landlord's affidavit of service of the 1986- 
          1987 final M.B.R. order of eligibility which was allegedly mailed 
          to the subject tenants on February 22, 1989, and a copy of a form 
          promulgated by the Post Office which contains the names and 
          apartment numbers of the subject tenants; the postage to allegedly 
          mail the aforementioned final M.B.R. order of eligibility to each 
          tenant, several copies of 25 cents stamps affixed to the form, and 






          Docket No. HK430005RP(EK430306RO)

          a copy of an U.S Postal Service Postmark of February 22, 1989.

               In the order under review herein issued on November 2, 1990 
          under Docket No. DF420033BO, the Administrator affirmed the prior 
          order issued under Docket No. 7MD03202M as it was determined that 
          the landlord's affidavit of service was filed late.

               In its petition the subject landlord asserts, among other 
          things, that the subject landlord did not receive the final M.B.R. 
          order of eligibility for the 1986-1987 period until February 1, 
          1989; that when the landlord did receive the above-mentioned M.B.R. 
          order of eligibility it was served upon all of the rent controlled 
          tenants by "certificate of mailing," and that the landlord 
          "prepared an affidavit of such service for submission with copies 
          of the postal proof of mailing upon the DHCR," and that the 
          landlord has met all statutory requirements to qualify for M.B.R. 
          increases for the 1986-1987 period.

               Some tenants submitted responses which assert, among other 
          things, that the "documents" which the landlord alleged it mailed 
          were received by the tenants, and that if the landlord's petition 
          were granted the tenants would suffer a financial hardship in 
          having to pay retroactive rents.

               After careful consideration, the Commissioner finds that the 
          landlord's petition should be granted.

               The Commissioner is of the opinion that the record is not 
          clear as to whether on June 29, 1988 the rent agency served the 
          subject landlord a copy of the aforementioned final order issued 
          under Docket No. 7M03202M which granted the landlord M.B.R. 
          increases for the 1986-1987 period.

               As previously noted, the subject landlord pointed out that it 
          was first served with the aforementioned final M.B.R. order of 
          eligibility when it received the aforementioned Administrator's 
          notice mailed to it on February 1, 1989.

               The Commissioner finds that the subject tenants do not submit 
          any evidence to rebut the landlord's assertions in this proceeding.

               Accordingly, the Commissioner finds that the time for the 
          subject landlord to have complied with the terms and conditions 
          noted in the aforementioned final M.B.R. order of eligibility was 
          within sixty days of February 1, 1989.

               As previously noted, the subject landlord pointed out that it 
          served the subject tenants on February 22, 1989 a copy of the 
          aforementioned final M.B.R. order of eligibility for the 1986-1987 
          period.

               Based on the evidence submitted in this proceeding, the 












          Docket No. HK430005RP(EK430306RO)

          Commissioner finds that the subject landlord has met its burden of 
          proof in showing that it served the subject tenants on February 22, 
          1989 the aforementioned final M.B.R. order of eligibility.

               The record reflects that the subject landlord submitted to the 
          rent agency an affidavit of service of the aforementioned final 
          M.B.R. order of eligibility which was mailed to the subject tenants 
          on February 22, 1989.

               Accordingly, the Commissioner finds that the subject landlord 
          has met the terms and conditions to qualify for M.B.R. increases 
          for the 1986-1987 period effective January 1, 1986.

               The Commissioner points out that none of the subject tenants 
          dispute receiving a copy of the aforementioned final M.B.R. order 
          of eligibility or the interim M.B.R. order of eligibility.

               Accordingly, the Commissioner finds that the Administrator's 
          order under review herein issued on November 2, 1990 under Docket 
          No. DF420033BO(7MD03202M) should be revoked.  The Commissioner 
          further finds that the Administrator's order issued under Docket 
          No. 7M03202M which granted the landlord M.B.R. increases for the 
          1986-1987 period should be affirmed.

               As to the tenants assertion that having to pay retroactive 
          rents would be a financial hardship, the Commissioner finds that 
          that fact does not bar the landlord from collecting increases in 
          the maximum rent.  The Commissioner points out that if it is a 
          financial hardship for any of the tenants who are senior citizens 
          to pay their rent, their remedy is to apply for a Senior Citizen 
          Rent Income Exemption (S.C.R.I.E.) with the applicable City agency.

               THEREFORE, in accordance with the City Rent and Rehabilitation 
          Law and Rent and Eviction Regulations, it is

               ORDERED, that the landlord's petition be, and the same hereby 
          is, granted, and that the Administrator's order, issued under 
          Docket No. DF420033BO(7MD03202M), be, and the same hereby is, 
          revoked; and it is

               FURTHER ORDERED, that the Administrator's order issued on June 
          29, 1988 under Docket No. 7M03202M which granted the landlord 
          M.B.R. increases for the 1986-1987 period effective January 1, 1986 
          should be affirmed; and it is

               FURTHER ORDERED, that the subject tenants may pay any 
          retroactive rent arising as a result of this order in one or more 
          lump sum payments or, at the tenants' option, in equal monthly 
          installments equal in number to the number of months between June 
          1, 1989 and the date of issuance of this order, and it is

               FURTHER ORDERED, that if a subject tenant vacates after the 






          Docket No. HK430005RP(EK430306RO)

          issuance of this order that tenant's retroactive rent shall be due 
          immediately.

          ISSUED:



                                                                            
                                             Joseph A. D'Agosta
                                             Deputy Commissioner






    

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