DHCR Must Make Further Inquiry as to Tenant's Income

(Decision submitted by Terry L. Hazen of the Manhattan law firm of Mitofsky Shapiro Neville & Hazen, LLP.) Facts: Landlord applied for high-rent/high-income deregulation of tenant's apartment in 1998. Tenant claimed that her annual household income for the years 1996 and 1997 was below $175,000 for each year. The Department of Taxation and Finance (DTF) found no match to verify tenant's statement, because tenant had not yet filed her 1997 tax return. The DRA ruled against landlord based on the lack of information from DTF. Landlord appealed. While landlord's PAR was pending in 1999, the DHCR again checked with DTF and tenant. Tenant still hadn't filed her 1997 tax return, claiming health problems. The DHCR ruled against landlord, and landlord appealed. Court: Landlord wins. In this case, the DHCR should not have simply closed the case because there was no match on tax information at DTF. It was tenant's fault that there was no information, given her delay in filing her taxes. The DHCR should wait until the filing was done to make its decision or keep making inquiries. It would be unreasonable to rely solely on the ''no match'' results in this case.

190 Riverside Dr., LLC v. DHCR: NYLJ, 9/27/00, p.27, col. 1 (Sup. Ct. NY; Figueroa, J)