Tenant Excused from Default in Luxury Deregulation Case

Landlord applied for high-rent/high-income deregulation of tenant's apartment in 2006. The DRA ruled for landlord based on tenant's failure to answer the notice of landlord's application. Tenant appealed, stating that he defaulted due to long-term anxiety, depression, and severe alcohol and drug addiction. These conditions made him unable to manage his affairs, and worsened in 2006 before he entered a full-time rehab center in December 2006. Tenant also said he'd been unable to work for the past five years, had taken extensive medication, had been hospitalized, and had been through detox. Tenant submitted sworn statements from his psychiatrist, his wife, his rehab treatment center, and his disability insurance carrier, along with hospital bills and documentation of medical expenses. Records showed that tenant was hospitalized in July 2006, shortly before the DRA sent tenant notice of landlord's application. The DHCR ruled for tenant and reopened the case. Tenant proved good cause for his default based on his serious health problems. The case should be determined on the merits, based on whether tenant's income is above or below the $175,000 deregulation threshold.

Weiner: DHCR Adm. Rev. Docket No. UE410947LD (11/21/07) [4-pg. doc.]