DTF Can't Verify Tenant's Income

Landlord applied for high-rent/high-income destabilization of tenant's apartment. The DRA ruled against landlord and dismissed the application because the state Department of Taxation and Finance (DTF) was unable to match a tax return for all named occupants of the apartment for the two prior years and the household income therefore wasn't determined. Landlord appealed and argued that the DRA should have held a hearing and determined why no match of household income was made. The DHCR ruled against landlord. Upon notice from DTF that a tax return match couldn't be made, the DRA sent requests for additional information to both landlord and tenants. Tenants stated that the names and addresses for their tax returns were correct. The DRA reasonably concluded that no new proof could have been gotten through a hearing and wasn't required to hold one. Landlord's claim that there was no requirement to dismiss a deregulation application when there was no tax return match was also incorrect. The rent stabilization code provides that, if the DTF verifies that the household income meets the $250,000 income threshold, the apartment will be deregulated. So, it must follow that if the DTF doesn't verify the income, the apartment won't be deregulated.

615 Company: DHCR Adm. Rev. Dckt. No. JG410010RO (10/1/96) [3-page document]