Court Excuses Tenant's Failure to Answer LD Application Notice

Landlord applied for high-rent/high-income deregulation of rent-stabilized tenant's apartment in 2009. Landlord claimed that tenant never responded to the Income Certification Form (ICF) that landlord had sent to tenant earlier that year. Tenant didn't answer the DRA's notice of landlord's application. The DRA ruled in September 2013 that the apartment would be deregulated upon expiration of the existing lease.

In August 2015, tenant filed a PAR of the DRA's order. She claimed that she had a meritorious defense because her income never exceeded the statutory threshold needed for high-income rent deregulation. She also claimed that her failure to respond to the application was due to a debilitating medical condition beyond her control. Tenant pointed out that in 2014, the DRA denied landlord's 2013 deregulation application because it had already ruled for landlord in this case on its 2009 application. Tenant mistakenly filed a PAR against the April 2014 order instead of the September 2013 order. In April 2016, the DHCR dismissed tenant's 2015 PAR as untimely.

Tenant then brought an Article 78 court appeal, and the court reopened the 2009 deregulation application and sent it back for further consideration. The DHCR found that tenant showed good cause for her default and that the case should be determined on the merits by the DRA. DTF records showed that tenant filed no tax returns for 2007 and that, for 2008, tenant's total annual income was below the $175,000 income threshold. The DRA then ruled against landlord for the 2009 deregulation cycle.

Landlord appealed and lost. The DHCR's acceptance of tenant's late-filed PAR was consistent with the court order remanding the case and there was good cause to accept tenant's late-filed PAR.

Tremanda West End Ave LLC: DHCR Adm. Rev. Docket No. HR410027RO (10/27/20) [7-pg. doc.]