Corporate Income Not Included in Calculation of Household Income

Landlord applied for a high-rent/high-income deregulation of tenant's apartment. Tenant answered, and claimed that his adjusted gross household income was below the $175,000 threshold for each of the prior two years. The DRA ruled against landlord. Landlord appealed and lost. Landlord claimed that tenant operated three corporate businesses from the apartment, and that the income from these businesses should be included in tenant's household income calculation. Landlord also said that the DHCR should look into whether tenant was hiding personal income through the businesses. The DHCR said the Rent Stabilization Code doesn't allow corporate income to be included in the calculation of household income. The code refers only to the calculation of individual personal income. And the DHCR has no authority to examine the financial relationship between individual apartment occupants and tenants' corporations.

171 West 57th St. Operating, LLC: DHCR Adm. Rev. Docket No. UA410015RO 7/26/06 [5-pg. doc.]