Tenant's Primary Residence Irrelevant to Deregulation

Landlord applied for high-rent/high-income deregulation of tenants' apartment in 2009. Tenants claimed that their household income was below the $175,000 deregulation threshold in both 2007 and 2008. The DRA ruled for landlord after DTF records showed that tenants' household income was more than $175,000 during the relevant period. Tenants, a husband and wife, appealed and lost. They claimed that the husband's primary residence was in Connecticut, so his income didn't count toward the annual household income. But tenants misinterpreted the law. Rent Stabilization Law Section 2531.1(b) provides that the annual income of all tenants "who occupy" an apartment will be considered. In addition, the income of all other occupants who live in an apartment "as their primary residence" will be considered. DHCR Operational Bulletin 95-3 further defines the relevant total annual household income to include that of all tenants named on the lease who occupy an apartment "whether or not as their primary residence." Tenants' apartment was properly deregulated.

Fitzgerald: DHCR Adm. Rev. Docket No. ZE410012RT (11/17/11) [5-pg. doc.]