DHCR Relies on Second Income Verification Report from DTF

Landlord applied in 2009 for high-rent/high-income deregulation of tenant's rent-stabilized apartment. The DRA ruled against landlord, finding that tenant's total household income didn't exceed $175,000 in either 2007 or 2008. Landlord appealed and lost. Landlord objected to the fact that the DRA conducted two tax-match inquiries to the Department of Taxation and Finance (DTF). DTF originally reported that tenant's household income was greater than $175,000 for each year in question. But tenant claimed that was a mistake, and the DHCR resubmitted its income verification request to DTF. DTF then reported that tenant's household income was below $175,000 for both years. Landlord argued that tenant may have filed amended returns to avoid deregulation. But there was no proof of this. And under current DHCR processing policy, the DRA will conduct a follow-up income verification inquiry to DTF when tenant claims that an initial report is inaccurate and in error. 

SP East 63 LLC: DHCR Adm. Rev. Docket No. CP410013RO (2/4/15) [4-pg. doc.]