Landlord Can't Use Certified Accounting Statements as Proof in Hardship Application

Landlord applied for hardship rent increases for rent-controlled tenants. The DRA denied landlord's application, finding that landlord didn't submit information necessary to process the case. Landlord appealed, arguing that the DRA was irrational in refusing to accept certified public accounting financial statements in processing its application. The DHCR accepts such proof for hardship applications concerning rent-stabilized, but not rent-controlled, apartments. The DHCR denied landlord's PAR. The regulations applicable to rent-controlled and rent-stabilized apartments are different. In addition, any financial statements prepared by a certified public accountant must be supplemented by supporting schedules that break down expenses

[Reifer: DHCR Adm. Rev. Dckt. No. EB 430295-RO (1/22/93)]. 4-page document.