Tenant's Excusable Default Reopened Deregulation Proceeding
LVT Number: #30940
Landlord applied in 2014 for high-rent/high-income deregulation of tenant's rent-stabilized apartment. The DRA ruled for landlord based on tenant's failure to respond and stated that tenant would be deregulated upon expiration of the existing lease.
Tenant appealed, claiming that she had received so many annual "LD" applications from landlord, some of which hadn't been resolved, that she didn't realize the 2014 Income Certification Form (ICF) or "LD" application was for a new cycle. Tenant also claimed that there had been deaths within her immediate family during the DRA processing period that caused her to miss the deadline for responding to the DRA's final notice.
The DHCR ruled for tenant and reopened the case. Tenant presented credible reasons for not answering the 2014 ICF. But this didn't directly result in the deregulation order. Tenant's failure to complete the answer form was the cause of the deregulation order. Tenant had completed answer forms for 2009, 2010, and 2011. Since tenant had prior experience with answering, this showed that her intent was to comply with various filing procedures. Not all of tenant's recent renewal leases contained notices concerning LD proceedings, adding to tenant's confusion. Tenant also was confused by receipt of several DRA orders denying deregulation for prior cycles around the time she received notice of the 2014 LD proceeding. And tenant's 2013 income tax return, submitted by tenant with her PAR, indicated that her income for that year was below the deregulation threshold.
The DHCR ruled for tenant and dismissed the LD application. Tenant showed good cause for vacating the DRA deregulation order. And, because the deregulation order for the 2014 cycle had now been revoked, HSTPA required continuation of tenant's rent-stabilized status since high-rent/high-income deregulation was no longer available. The DHCR could no longer review an LD application.
Elkin: DHCR Adm. Rev. Docket No. HO410035RT (7/3/20) [11-pg. doc.]
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