Only Annual Income Considered for High-Rent/High-Income Deregulation

Landlord applied for high-rent/high-income deregulation of tenants' apartment. Tenants claimed that their annual income for the prior two years was below the deregulation threshold. New York State Department of Taxation and Finance records confirmed tenants' claim. The DRA ruled against landlord. Landlord appealed and lost. Landlord claimed that tenants' income was unlikely to be less than $175,000 per year in light of the amount of their rent. The DHCR ruled that the only relevant income for deregulation purposes is annual federal adjusted gross income as reported on New York State income tax returns for all household members. Tenants provided the required information. Any additional wealth or assets that tenants may have was not relevant.

Belnord Realty Assocs., L.P.: DHCR Adm. Rev. Docket No. UH410059RO (11/15/06) [3-pg. doc.]