Deregulation Order Overturned

Landlord sought high-rent/high-income deregulation of tenant's apartment in 1995. Landlord questioned the amount of household income tenant had claimed on the 1995 Income Certification form. Tenant's answer to landlord's petition was due on Oct. 20, 1995. Tenant's answer was postmarked Oct. 31, 1995, and received by the DHCR on Nov. 1, 1995. Tenant's answer contained the same information as stated in the Income Certification form. Tenant claimed his annual household income was less than $250,000. The DHCR ruled for landlord based on tenant's answer not being on time. Tenant appealed, claiming that the DHCR's ruling was arbitrary and capricious. The court ruled for tenant. Tenant had an excusable default, which was promptly cured; landlord wasn't prejudiced by tenant's late filing; and tenant had a meritorious defense. The information before the DHCR was tenant's statement that his household income was $133,000 in 1993 and $126,000 in 1994. Tenant's answer also was filed almost a year before the DHCR issued its ruling. The case was sent back to DHCR for a decision based on the facts.

Elkin v. Roldan: NYLJ, p. 26, col. 4 (9/12/97) (Sup. Ct. NY; Wetzel, J)