DHCR Needn't Reverify Tenant's Income

Landlord applied for high-rent/high-income deregulation of tenant's apartment in 1999. The DHCR found that tenant's income was below the deregulation threshold in 1997 and 1998, so the application was dismissed. Landlord again applied for high-rent/high-income deregulation of the apartment in 2000. This required review of tax record information for 1998 and 1999. Since the DHCR had already verified tenant's 1998 income during the prior year's application process, it relied on that information to dismiss landlord's 2000 application. Landlord appealed, arguing that the DHCR's procedure was improper. The court and appeals court ruled against landlord. The Rent Stabilization Law doesn't require the DHCR to reverify tenant's previously verified income in the new application year. And it would be wasteful to do so, especially when there was no claim that tenant's income was understated to the state's Department of Taxation.

Broadway 95th St., LLC v. DHCR: NYLJ, 9/30/02, p. 20, col. 3 (App. Div.1 Dept.; Nardelli, JP, Saxe, Ellerin, Rubin, Friedman, JJ)