Landlord Can Seek High-Rent Deregulation of Corporate Tenant

(Decision submitted by Joshua G. Losardo of the Manhattan law firm of Belkin Burden Wenig & Goldman, LLP, which represented the landlord.) Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment. The DRA ruled for landlord based on tenant's failure to provide any income information. Tenant appealed and lost. Tenant was a corporation, and claimed that corporate income can't be considered for the purpose of high-rent deregulation. The DHCR ruled that tenant was correct that the corporate income of a named corporate tenant can't be considered for the purpose of high-rent deregulation. But it doesn't matter that the tenant of record is a corporation. To determine whether an apartment qualifies for high-rent/high-income deregulation, the law requires the DHCR to consider the income of all of the individuals occupying the apartment as their primary residence during the two years before the year that landlord's application is filed. Tenant didn't provide any income verification information for individuals who lived in the apartment. So the DRA correctly had ruled for landlord.

Samco Properties: DHCR Adm. Rev. Docket No. UK410015RT (2/21/07) [8-pg. doc.]