Tenant Deregulated for Failure to Submit Tax Information

(Decision submitted by David Hamill, attorney for Solil Management, who represented the landlord.)

Landlord applied in 2007 for high-rent/high-income deregulation of tenant's rent-stabilized apartment. In November 2008, the DRA terminated the proceeding because in September 2008 the DRA had granted landlord's 2006 deregulation application and tenant had filed no appeal. Tenant appealed the new decision. The DHCR pointed out that the new decision didn't deregulate the apartment; it merely terminated the 2007 proceeding. But the DHCR noted that tenant had in fact filed a PAR of the 2006 proceeding, which was then pending. In October 2009, the DHCR revoked the 2006 deregulation order and sent the case back for reconsideration.

Landlord then asked the DRA to reconsider its 2007 deregulation application. The DHCR reopened the 2007 proceeding after it ruled for tenant in the 2006 proceeding. Tenant answered that his household income was below $175,000 for both 2005 and 2006, but he still hadn't filed his income tax returns for those years. In May 2012, the DRA sent tenant a final notice requesting proof that he had filed his 2005 and 2006 income tax returns. The DRA advised tenant that he was at risk of default. Tenant answered that he still hadn't filed his 2005 and 2006 tax returns, but had already submitted his W-2 forms to document his household income. The DRA ruled for landlord based on tenant's failure to provide tax information.

Tenant appealed and lost. After six years, tenant had neither filed tax returns for 2005 and 2006 nor submitted proof that he had filed any extension requests with the DTF. Tenant therefore didn't comply with the requirement that he provide the DHCR and DTF with information needed to verify his household income. Tenant didn't show any good cause for his noncompliance, and his apartment was properly deregulated.

Savage: DHCR Adm. Rev. Docket No. AT410028RT (5/31/13) [14-pg. doc.]