Tenant Default Excused in Luxury Deregulation Case

Landlord applied for high-rent/high-income deregulation of tenant’s apartment in 2008. The DRA ruled for landlord based on tenant’s failure to respond to notices of landlord’s application. Tenant appealed and asked the DHCR to excuse her default. The DHCR ruled against tenant, who then filed a court appeal, claiming that the DHCR’s decision was arbitrary and unreasonable. The court ordered the DHCR to reconsider. The DHCR then reopened the case. Tenant was 81 years old and said she suffered significant health problems. She was unable to work due to age and illness and her only income was Social Security. Tenant said that she didn’t file income tax returns due to her low income, and had lived in the apartment for 34 years. The DHCR excused tenant’s default and sent the case back the DRA to rule on whether tenant’s income was below the deregulation threshold.

Guber: DHCR Adm. Rev. Docket No. YA410005RP (5/5/10) [3-pg. doc.]