Apartment Deregulated Based on High Income

(Decision submitted by Niles Welikson of the Williston Park law firm of Horing Welikson & Rosen, PC, attorneys for the landlord.) Facts: In 1999, landlord sent an income certification form to L. Klein. L. Klein was rent-controlled tenant, who died in 1977. Tenant's wife, son, daughter-in-law, and grandchild still lived in the apartment. The son filled out the income certification form listing all of them and sent it back to landlord. Later that year, the DHCR sent deceased tenant notice of landlord's application for high-rent/high-income deregulation. Tenant's son signed a certified mail return receipt for the notice. But he didn't answer it within 60 days or at any time before issuance of the DRA's order of deregulation on Feb. 28, 2000. Tenant's son filed a request for reconsideration based on an irregularity in a vital matter, but didn't file a PAR. The DHCR denied his request for reconsideration. Tenant's son then signed a two-year lease for the apartment. After signing a second two-year lease, in 2003, tenant's son sued landlord, seeking a declaration that the apartment was rent-controlled and voiding the deregulated leases. The son again sought reconsideration of the deregulation order, claiming that none of tenant's family members received notice of the deregulation application. The request was denied, and tenant's son filed a PAR. The DHCR ruled against tenant's son, and he challenged that ruling in court. The court ruled that the case should go back to the DHCR for reconsideration, and the DHCR appealed. Court: The DHCR wins. There was no reason to send the case back to the DHCR. Tenant's family members received notice of landlord's deregulation application. They had filled out the income certification form, and received the DRA's notice of the deregulation application. Tenant's son didn't file a PAR against the deregulation order after his request for reconsideration was denied. There was no irregularity in a vital matter. And there was no proof that tenant's family members ever asked that the rent-controlled tenancy be changed to any of their names.

Klein v. DHCR: NYLJ, 4/18/05, p. 31, col. 5 (App. Div. 1 Dept.; Mazzarelli, JP, Sullivan, Ellerin, Nardelli, Williams, JJ)