DHCR Must See if Tenants Filed Tax Returns When State Can't Verify Income

Landlord applied for high-rent/high-income deregulation of tenant's apartment. The DRA ruled against landlord because it couldn't get verification from the New York State Department of Taxation and Finance concerning tenant's annual household income in the prior two years. Landlord appealed, arguing that if the DTF couldn't make a match, the DHCR should do additional investigation into whether tenant filed tax returns for the years in question. The DHCR ruled for landlord and sent the case back for further processing. A court had ruled in a prior case that if the DTF couldn't make a match with its tax records, the DHCR should make additional efforts to obtain more information from tenants as to whether income tax returns were filed.

81st Realty Corp.: DHCR Adm. Rev. Docket No. UD410001RO 9/29/06 [4-pg. doc.]