DHCR Must Consider Tenant's Amended Tax Return

June 30, 2004

LVT Number: 17456

Landlord applied for high-rent/high-income deregulation of tenant's apartment. The DRA ruled against landlord based on tenant's amended tax return. Landlord appealed. While its PAR was pending, landlord sued tenant in court to challenge the DHCR's ruling. The court dismissed the case. Landlord appealed and lost. Landlord must wait for the DHCR to decide its PAR and then appeal the PAR decision. It couldn't challenge the DHCR's decision in a separate court action. And because landlord had now appealed the PAR decision, there was no reason to allow the other case to go forward.

Landlord applied for high-rent/high-income deregulation of tenant's apartment. The DRA ruled against landlord based on tenant's amended tax return. Landlord appealed. While its PAR was pending, landlord sued tenant in court to challenge the DHCR's ruling. The court dismissed the case. Landlord appealed and lost. Landlord must wait for the DHCR to decide its PAR and then appeal the PAR decision. It couldn't challenge the DHCR's decision in a separate court action. And because landlord had now appealed the PAR decision, there was no reason to allow the other case to go forward. The court noted that the DHCR decision must be reopened to consider whether the DHCR should have relied on tenant's amended return.

985 Fifth Ave. LLC v. Reiss: NYLJ, 6/3/04, p. 25, col. 5 (App. Div. 1 Dept.; Tom, JP, Andrias, Sullivan, Friedman, JJ)

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