Landlord Used Incorrect Test Year Period for Alternative Hardship Application

Landlord filed an Application for Rent Increase based on Alternative Hardship with the DHCR, and included 2018 building income and expense information for the test year period. The DRA ruled against landlord, finding that landlord's application was filed too late in 2020 to use the calendar year of 2018 for reporting the building's income and expenses.

Landlord appealed and lost. Landlord claimed that it had attempted to submit the application to the DHCR on Dec. 11, 2019, and that its reliance on the 2018 test year therefore was timely. Landlord submitted a FedEx printout confirming that a package was delivered to the DHCR in "New York City, NY" on that date. But landlord filed the application on Sept. 21, 2020. It therefore was required to choose a test year that was either the most recent calendar year (2020) or the most recent fiscal year, or any 12 consecutive months ending within 90 days prior to date of filing. Otherwise, the DHCR records didn't show that any prior application was received. The FedEx shipment confirmation printout provided by landlord on appeal didn't show that the shipment originated from landlord or what the delivered package contained, listed an incorrect agency name, failed to show the agency's address, and didn't show that the package was signed for by a DHCR employee.

Abacus Clinton LLC: DHCR Adm. Rev. Docket No. JQ410034RO (7/16/21)[2-pg. document]