Corporate Income Excluded When Determining if Tenant Qualifies for High-Income Deregulation

Landlord applied for high-rent/high-income deregulation of tenant's apartment. The DRA ruled against landlord because tenant's income was below the $175,000 deregulation threshold. Landlord appealed, claiming that tenant operated a catalog business out of the apartment, that the business indirectly paid the rent for the apartment, and that the corporation's rent should be considered in determining whether tenant's income was high enough for deregulation. The DHCR ruled against landlord. By law, the DHCR can only review total household income for two prior tax years, as verified by the state Division of Taxation and Finance. The DHCR can't consider any other income.

The 400 Realty Co.: DHCR Admin. Rev. Dckt. No. PC410045RO (2/8/02) [4-pg. doc.]