Tenants Deregulated Due to High Income

Landlord applied for high-rent/high-income deregulation of tenants' apartment in 2008. Tenants were husband and wife. The wife answered the application, claiming that her husband had moved out of the apartment in January 2006, so his income shouldn't be counted. The DRA ruled against tenants. DTF income tax verification information showed that the tenants' total household income exceeded $175,000 in both 2006 and 2007. Tenants appealed and lost. Tenants pointed out that in 2008 landlord had refused to renew tenants' lease because it claimed that the husband lived on Long Island. But Rent Stabilization Code Section 2531.1(b) and DHCR Operational Bulletin 95-3 made clear that total annual income for the purposes of luxury decontrol includes the sum of the annual incomes of all persons whose names are recited as the tenant or co-tenant on the lease. Where tenants actually lived didn't matter. Notably, the husband stated that the New York City apartment was his address on ICF forms completed in 2006 and 2007. And in September 2008, he stated in a housing court proceeding that he lived in the apartment with his wife and daughter.

McNicol: DHCR Adm. Rev. Docket No. YL410046RT (12/6/11) [8-pg. doc.]