Combined Apartment Deregulated

Facts: Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment. Tenant rented Apartment 15B. Her husband rented Apartment 15C, under a separate lease. The apartments were registered separately with the DHCR, and tenant and her husband paid rent for each apartment separately by separate checks. However, tenant and her husband had combined the apartments and removed the kitchen from one of them. For this reason, the DRA found that tenant's husband was an occupant of Apartment 15B. Their combined household income was greater than the deregulation threshold. The DRA ruled for landlord. Tenant appealed to the DHCR and lost. Tenant then challenged the DHCR's ruling in court, claiming that it was unreasonable. Tenant argued that she had an agreement with landlord not to deregulate the apartment. She also pointed out that landlord never amended the C of O for the combined apartments. Tenant argued, for the first time, that she and her husband weren't one household because they were getting divorced. Court: Landlord wins. For purposes of luxury deregulation, the DHCR can examine whether apartments are combined. The husband's apartment was so connected to tenant's apartment that he was reasonably found to be an occupant of tenant's apartment. And divorce wasn't an issue when the case was before the DHCR, so it wasn't relevant.

Noto v. DHCR: NYLJ, 1/15/03, p. 18, col. 2 (Sup. Ct. NY; Bransten, J)