Tenant Didn't Answer Deregulation Application on Time

Landlord applied to the DHCR for high-rent/high-income deregulation of tenant's rent-stabilized apartment. Tenant didn't answer landlord's petition, and the DRA ruled for landlord based on tenant's default. Tenant appealed and submitted income statements showing an income below the annual $250,000 threshold. The DHCR ruled against tenant. Tenant then appealed to the court, claiming that the high-rent/high-income deregulation rules were unconstitutional because they deprived her of property without due process of law. The court ruled for tenant, but not for constitutional reasons. The court found that the DHCR's refusal to overturn the DRA's default ruling was arbitrary and unreasonable. Tenant's default didn't appear to be willful and, if tenant's income statements were accurate, tenant's income was below the high-income threshold.

Berlet v. DHCR: NYLJ, p. 30, col. 3 (11/26/98) (Sup. Ct. NY; McCooe, J)