Tenant's Failure to Answer Luxury Deregulation Application Excused

Landlord applied in 2013 for high-rent/high-income deregulation of rent-stabilized tenant’s apartment. The DRA ruled for landlord based on tenant’s failure to respond to the notice of the application. Tenant appealed, and the case was reopened. Tenant claimed that his income was below the deregulation threshold and submitted copies of his 2011 and 2012 tax returns. He also argued that he had been disabled by lung disease since 2013. He said that his disability impaired his concentration and his ability to sort out financial issues. The DHCR ruled for tenant and reopened the case. Two doctors submitted documents supporting tenant’s claim concerning numerous serious physical and mental medical issues that affected tenant’s mental capacity and memory. Although landlord questioned why tenant’s wife couldn’t have answered the deregulation petition notice, the DHCR found that tenant showed good cause to excuse his default. The case was sent back to the DRA to confirm whether tenant’s income was below the deregulation threshold.

Levy: DHCR Adm. Rev. Docket No. ER410069RT (1/24/17) [5-pg. doc.]