Income of Tenant's Husband Improperly Used to Determine Deregulation

Landlord applied for high-rent/high-income deregulation of rent-stabilized tenant’s apartment in 2012 when tenant’s monthly rent was $2,500 or more. Tenant claimed that her household income for 2010 and 2011 was less than $200,000 for both years. But, after verifying tenant’s income tax information with DTF, the DRA ruled for landlord based on tenant’s joint income tax returns with her husband. Tenant appealed, and the case was reopened for new income verification. Tenant claimed, as she had before the DRA, that her husband didn’t primarily reside in the apartment and his income shouldn’t be included in the DHCR’s assessment. Tenant claimed that the DTF applied the specified income allocation percentage incorrectly, using her husband’s income instead of hers to determine whether her income was above the deregulation threshold. The DHCR found that tenant was correct. Also, landlord presented no evidence rebutting tenant’s claim that the apartment wasn’t her husband’s primary residence. 

Grossman: DHCR Adm. Rev. Docket No. DV410025RT (8/24/16) [10-pg. doc.]