ADM. REVIEW DOCKET NO. HK430003RP
                                  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. HK430003RP 
                                                             (EB430300RO)

                                                  DISTRICT RENT
                                                  ADMINISTRATOR'S DOCKET
                                                  NO. DE420047BO 
                    THE ARGO CORPORATION,             (7MD02847M)
                                   PETITIONER
          ------------------------------------X

            ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
           IN PART AND REMANDING THIS PROCEEDING TO THE RENT ADMINISTRATOR
                                          
               On February 14, 1990, the above-named landlord filed a 
          petition for administrative review of an order issued on January 
          12, 1990 by a Rent Administrator concerning various housing 
          accommodations in the premises known as 200 West 86th Street, New 
          York, New York.

               On May 14, 1993, the Commissioner issued an order and opinion 
          denying the landlord's petition, under Docket No. EB430300RO.

               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. 
          HK430003RP.

               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 
          review.


















          ADM. REVIEW DOCKET NO. HK430003RP

               The Administrator issued an "Interim Order" on October 10, 
          1986 under Docket No. 7MI08247M 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. 7M08247M 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; 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 December 30, 
          1988, 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 April 21, 1989 under 
          Docket No. 7MD08247M 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 May 24, 1989, the subject landlord filed a challenge to the 
          above-mentioned Administrator's order.  In its challenge the 
          subject landlord alleged, among other things, that it did not 
          receive the final M.B.R. order of eligibility, and that it did not 
          receive the aforementioned notice relating to the filing of the 
          affidavit of service.

               In the order under review herein issued on January 12, 1990  
          under Docket No. DE420047BO, the Administrator affirmed the prior 
          order issued under Docket No. 7MD02847M as it was determined that 
          the landlord did not file an affidavit of service.

               In its petition the subject landlord reiterates its assertions 
          contained in its aforementioned challenge.  In addition, the 
          subject landlord asserts, among other things, that as it has not 
          received the final M.B.R. order of eligibility, the landlord could 
          not have served a copy of it on the rent controlled tenant, and 
          that the rent controlled tenants were served a copy of the interim 
          order issued on October 10, 1986.


               To its petition the subject landlord attaches, among other 
          things, an affidavit sworn to on May 23, 1989, which asserts that 






          ADM. REVIEW DOCKET NO. HK430003RP

          the aforementioned interim M.B.R. order of eligibility was served 
          on the rent controlled tenants on October 20, 1986; and it attaches 
          a copy of the 1986 "Master Building Rent Schedule," dated October 
          20, 1986.

               Various tenants submit responses which allege, among other 
          things, that they were not served with the interim and the final 
          M.B.R. order of eligibility.

               After careful consideration, the Commissioner finds that the 
          landlord's petition should be granted in part and that this 
          proceeding should be remanded to the Administrator for further 
          review.

               As previously noted, the subject landlord attached to its 
          petition a copy of the 1986 "Master Building Rent Schedule," dated 
          October 20, 1986.

               The record reflects that the subject landlord filed a copy of 
          the 1987 "Master Building Rent Schedule," dated February 3, 1987, 
          with the rent agency.  The above-mentioned "Master Building Rent 
          Schedule" was stamped as being received by the rent agency on March 
          9, 1987.

               Based on a preponderance of the evidence contained in the 
          record, the Commissioner is of the opinion that the subject 
          landlord did serve the rent controlled tenants a copy of the 
          aforementioned interim M.B.R. order of eligibility for the 1986- 
          1987 period.

               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. 7M08247M which granted the landlord M.B.R. 
          increases for the 1986-1987 period.  The Commissioner is also of 
          the opinion that the record is not clear as to whether on December 
          30, 1988 the rent agency mailed the aforementioned notice 
          pertaining to the landlord's failure to file an affidavit of 
          service.

               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 Administrator's 
          order under review herein issued under Docket No. DE420047BO 
          (7MD02847M) should be revoked.  The Commissioner further finds that 
          the landlord's final M.B.R. order of eligibility for the 1986-1987 












          ADM. REVIEW DOCKET NO. HK430003RP

          period should be reinstated.

               The Commissioner is of the opinion that this proceeding should 
          be remanded to the Administrator for the ministerial act of 
          reissuing the landlord's final M.B.R. order of eligibility for the 
          1986-1987 period, which will result in a new issuance date.

               The landlord is cautioned that its failure to comply with the 
          terms and conditions of the above-mentioned reissued order may 
          result in a revocation of that order.

               The Commissioner finds that this order and opinion is issued 
          without prejudice to the right of the rent controlled tenants to 
          file a challenge to the order granting the landlord M.B.R. 
          increases for the 1986-1987 period, pursuant to the terms of the 
          final M.B.R. order of eligibility which will be reissued by the 
          Administrator at a later date.

               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 in part, and that the Administrator's order issued 
          under Docket No. DE420047BO (7MD02847M), be, and the same hereby 
          is, revoked; and it is 

               FURTHER ORDERED, that this proceeding shall be remanded to the 
          Administrator for the ministerial act of reissuing the landlord's 
          final M.B.R. order of eligibility for the 1986-1987 period 
          effective January 1, 1986.

          ISSUED:




                                                                         
                                             JOSEPH A. D'AGOSTA
                                             Deputy Commissioner  
    

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