Tenant Showed No Good Cause to Vacate Default in Deregulation Case

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2017, when tenant's monthly rent was $2,700 per month, and requested verification of household income to confirm whether tenant's total annual household income was above $200,000 in 2015 and 2016. The DRA ruled for landlord based on tenant's failure to respond to the DHCR notice of the luxury deregulation application.

Tenant appealed and lost. Tenant claimed that, when she received the Income Certification Form (ICF) from landlord in 2017, she contacted landlord to say that her co-tenant husband hadn't lived in the apartment for more than 10 years. Landlord removed the husband's name from tenant's lease in March 2017, and tenant thought the issue was resolved. The DHCR found that tenant didn't provide any reasonable basis to excuse her default. The DRA sent tenant two separate notices of landlord's luxury deregulation application and retained proof of mailing. Tenant didn't deny receiving those notices. Tenant's failure to respond prevented the DHCR from verifying income information needed to decide the case. The DRA's notices specifically advised tenant that failure to respond could result in apartment deregulation. Tenant didn't prove good cause to vacate her default.

Kempinski: DHCR Adm. Rev. Docket No. GS410011RT (12/18/18) [5-pg. doc.]