DTF Verified That Tenant's Income Was Below Deregulation Threshold

Landlord applied for high-rent/high-income deregulation of tenant's apartment in 2013 when tenant's legal rent was over $2,500 per month and sought verification as to whether tenant's annual household income was more than $200,000 in 2011 and 2012. Tenant responded and submitted income tax information showing that her income was below the deregulation threshold. The DRA ruled against landlord, finding that because tenant's apartment was rent-controlled, the apartment remained regulated and ineligible for luxury deregulation after J-51 tax benefits expired at the building. Landlord appealed and lost. The DRA incorrectly found that tenant's apartment was rent controlled rather than rent stabilized. The apartment therefore was subject to luxury deregulation. But the Department of Taxation and Finance (DTF) had verified that tenant's income was below the deregulation threshold for the years in question. So there was no need to reopen the case for further processing.

Walsam 240 Owner, LLC: DHCR Adm. Rev. Docket No. FR420058RO (10/25/17) [4-pg. doc.]