Tenant Didn't Receive Deregulation Order

Landlord applied for high-rent/high-income deregulation of tenant’s apartment in 2013. The DRA ruled for landlord based on tenant’s failure to respond to landlord’s application and failure to provide the required income verification information to the DHCR. Tenant appealed, and the case was reopened. Tenant claimed that he never received the DRA’s notice of landlord’s application. Mail at tenant’s building was routinely and frequently distributed to tenants by building employees. Tenant responded to all prior annual deregulation notices, and his income was below the deregulation threshold. Tenant also said that he never received the DRA’s order of deregulation and learned about it only when he later received a fair market rent renewal. He then filed the PAR at once.

The DHCR ruled for tenant because review of the DHCR’s records showed that the DRA’s deregulation order that was mailed to tenant was returned to the DHCR by the U.S. Postal Service. So tenant’s PAR can’t be considered to have been filed late. Also, in response to tenant’s PAR, landlord didn’t dispute tenant’s claim concerning the method of mail distribution at the building. And postal tracking information showed only that the DRA’s original notice to tenant of landlord’s application was “delivered to the front desk or reception area” of the building. Tenant also had answered prior deregulation applications, so he understood the importance of doing so and the consequences of failing to answer. 

Fowler: DHCR Adm. Rev. Docket No. EM410025RT (5/9/16) [5-pg. doc.]