Earlier Ruling on Tenant's Annual Household Income Still Applied in 2005

(Decision submitted by David Hershey-Webb of the Manhattan law firm of Himmelstein, McConnell, Gribben, Donoghue & Joseph, attorneys for the tenants.) Landlord applied to DHCR in 2005 for high-rent/high-income deregulation of tenants' rent-controlled apartment. The DRA ruled for landlord based on tenants' failure to answer the notice of landlord's application. Tenants appealed and won. Tenants claimed that they didn't get the DHCR's notice because it was addressed to their father, who was the prior rent-controlled tenant and died in 1989. Tenants also pointed out that they'd answered prior high-rent/high-income deregulation applications in 2003 and 2004. In response to the 2004 application, the DHCR had already determined that tenants' annual household income was below the $175,000 threshold for 2003. Since 2003 was one of the tax years used to determine 2005 applications, the DHCR should have ruled against landlord even if tenants didn't answer. Based on the DHCR's 2004 ruling, tenants' apartment couldn't have qualified for high-rent/high-income deregulation in 2005. The DRA shouldn't have sent a notice to tenants in 2005, and tenants shouldn't have had to respond or give the DHCR any additional income verification information.

Engle: DHCR Adm. Rev. Dckt. No. TL420045RT (5/1/06) [6-pg. doc.)