Income of Business Entity Not Included

Landlord applied for high-rent/high-income deregulation of tenant's apartment because tenant's rent was over $2,000 per month. The DRA ruled against landlord. Department of Taxation and Finance (DTF) records showed that tenant's household income was less than $175,000 in one of the two years used to determine tenant's income. Landlord appealed, and asked that tenant's income be rechecked. Landlord claimed that tenant ran at least four corporate business entities from the apartment. The DHCR ruled against landlord. Under applicable law and regulations, the DHCR must rely on DTF records on household income to determine coverage. And there was no indication that tenant had filed an amended tax return for one of the years in question. In addition, for deregulation purposes, the Rent Stabilization Law and Code don't allow for the separate inclusion of corporate income in determining the total income of persons occupying an apartment.

171 West 57th St. Operating LLC: DHCR Adm. Rev. Dckt. No. SB410024RP (9/15/04) [3-pg. doc.]