Corporate Income Not Considered in Deregulation Application

April 1, 1998

LVT Number: 12260

Landlord applied for high-rent/high-income deregulation of tenant's rent-controlled apartment. Tenant lived in the apartment and operated his interior decorating business there. The DHCR ruled against landlord because it couldn't verify the income of the corporation that occupied tenant's apartment. Landlord appealed and lost. There was no way to confirm or verify the income of a corporate occupant of a rent-regulated apartment under the existing law. The legislature apparently didn't anticipate this type of situation. Under the circumstances the DHCR's ruling was reasonable.

Landlord applied for high-rent/high-income deregulation of tenant's rent-controlled apartment. Tenant lived in the apartment and operated his interior decorating business there. The DHCR ruled against landlord because it couldn't verify the income of the corporation that occupied tenant's apartment. Landlord appealed and lost. There was no way to confirm or verify the income of a corporate occupant of a rent-regulated apartment under the existing law. The legislature apparently didn't anticipate this type of situation. Under the circumstances the DHCR's ruling was reasonable.

Nestor v. DHCR: NYLJ, p. 26, col. 5 (3/25/98) (Sup. Ct. NY; McMahon, J)

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