Income of Tenant's Roommate Counted in Deregulation Case

Landlord applied in 2004 for high-rent/high-income deregulation of tenant's two rent-stabilized apartments. Tenant argued that the two apartments shouldn't be combined for the purposes of luxury decontrol. Tenant also listed a roommate as an occupant living in one apartment as his primary residence. Tenant later claimed that the roommate wasn't an occupant and that his total household income was less than the deregulation threshold in 2002. The DRA ruled against landlord because DTF records showed tenant's household income was less than $175,000 in 2002. The DRA also ruled that the roommate wasn't an apartment occupant and that the two apartments were considered to be combined for the purpose of decontrol. Landlord appealed, still claiming that the roommate was an apartment occupant. The DHCR reopened the case. Tenant now claimed that the roommate lived in the apartment in 2002, but not as his primary residence. DTF records showed that for both 2002 and 2003, tenant's household income, including that of his roommate, exceeded $175,000. The DRA ruled for landlord and deregulated the apartment. Tenant then appealed and lost. Tenant initially had claimed that the roommate lived in the apartment as his primary residence. Sworn statements from building employees showed that the roommate was seen entering and exiting the building on a nearly daily basis during the relevant time periods. Tenant also acknowledged that the roommate lived in the apartment in March 2004, when the income certification form was delivered.

Power: DHCR Adm. Rev. Docket No. ZL410025RT (11/21/12) [13-pg. doc.]