Luxury Rent Deregulation Case Reopened

Landlord applied for high-rent/high-income deregulation of tenant's apartment in 2010. Tenants answered the DRA's notice of the application, claiming that their total annual household income didn't exceed $175,000 for either 2008 or 2009. Tenants also stated that one family member had no income other than Social Security and therefore didn't file tax returns in either of the two years in question. The DTF forwarded income tax verification information to the DRA, indicating that tenants' household income exceeded the income threshold for both years. The DRA ruled for landlord. Tenants appealed, and the case was reopened. Tenants claimed that the DTF was mistaken and that their household income was below $175,000 for each year. Tenants' accountant had submitted copies of tenants' New York State income tax returns for 2008 and 2009 showing that tenants actually had losses for those years. Given the conflicting proof of tenants' income, the DHCR would reopen the case and have the DRA conduct further inquiries with DTF concerning the discrepancies.

Awal: DHCR Adm. Rev. Docket No. AV410007RT (2/11/13) [4-pg. doc.]