No High-Rent Deregulation Where Tenant Didn't File Tax Returns

Landlord applied for high-rent/high-income deregulation of tenant's apartment. Tenant claimed that her income was below the deregulation threshold. She also said she had not filed income tax returns for the prior two years, because her income was insufficient to require filing. The DRA ruled against landlord based on the Department of Taxation and Finance's (DTF) inability to match a tax return for tenant for the two years in question. Landlord appealed, claiming that the DHCR should have investigated further. The DHCR ruled against landlord. Tenant is not required to give the DHCR an explanation as to why the DTF can't match her name to tax records. Tenant answered landlord's application and provided all of the requested information. Tenant did, in fact, explain why there was no tax information match, and the DHCR had no further obligation to investigate. The DHCR is not authorized to make an independent determination of tenant's income.

305 Riverside Corp.: DHCR Adm. Rev. Docket No. UG410026RO (11/29/06) [4-pg. doc.]