Deceased Occupant's Income Properly Not Included

In 1995 landlord applied for high-rent/high-income deregulation of tenant's apartment. Tenant's monthly rent was over $2,000, and landlord claimed tenant's annual household income was greater than $250,000 in 1993 and 1994. One tenant answered on time, claiming that the total household income was below the $250,000 threshold. Tenant stated that her husband had died in December 1993. After matching tax records with the Department of Taxation, the DRA ruled against landlord. The DRA found that tenants' income was under $250,000 for either or both of the years in question. Landlord appealed, claiming that the DHCR should have considered the income of the husband's estate for 1994 in calculating the household income as well as the husband's 1993 income. The DHCR ruled against landlord. DHCR Policy Statement 95-3 states that the incomes to be considered in determining deregulation applications are the incomes of occupants who are in the apartment on the date the Income Certification Form (ICF) is sent to tenant. Tenant's husband had died more than a year before the ICF was sent in early 1995. The DRA had made a mistake in landlord's favor by considering the deceased husband's 1993 income in its calculations.

Belnord Realty Assocs.: DHCR Adm. Rev. Dckt. No. KJ410014RO (11/26/97) [3-page document]