Tenant's Household Income Below Deregulation Threshold

Landlord applied in 2010 for high-rent/high-income deregulation of tenant's rent-stabilized apartment. Tenant answered, claiming that her total annual household income was below $175,000 for both 2008 and 2009. After matching tax records for tenant and other household members with DTF, the DRA ruled against landlord.

Landlord appealed and lost. Landlord claimed that the DRA didn't include all apartment occupants in its calculation of household income. The DTF made a tax match for tenant and one apartment occupant for 2009, showing household income for that year was below $175,000. Although the DHCR wasn't able to match tax records with DTF for another apartment occupant in 2009, this was because that occupant wasn't required to file tax returns that year. Another apartment occupant moved out in October 2009 and therefore wasn't in occupancy in 2010 when the Income Certification Form was sent to tenant. So that occupant's income wasn't included in the DRA's calculations. Tenant admitted that she hadn't filed an income tax return for 2008. But, since tenant's household income for 2009 was below the deregulation threshold, it wouldn't matter what tenant's 2008 income was.

Charles 15 Associates: DHCR Adm. Rev. Docket No. BM410035RO (5/22/14) [4-pg. doc.]