Tenant Excused from Deregulation Case Default for Health Problems

Landlord applied for high-rent/high-income deregulation of tenant's apartment in 2007. The DRA ruled for landlord based on tenant's default. Tenant never answered the DRA's notice of landlord's application. Tenant appealed, claiming that during the time period for answering the application, she suffered a miscarriage and her mother was hospitalized with cancer and then placed in a nursing home. Tenant said that these personal and family medical problems caused her severe depression and anxiety. This in turn caused her to default.
The DHCR ruled for tenant and reopened the case. Rent Stabilization Code Section 2531.4 requires tenants to answer luxury deregulation applications within 60 days. But New York's highest court has ruled that the DHCR can accept a late response if good cause is shown. Tenant submitted a psychiatrist's letter and copies of medical bills in support of her claim. Her doctor said that tenant's condition affected her ability to fulfill her personal responsibilities. Tenant also submitted with her PAR a full response and copies of her tax returns showing that her income was below the deregulation threshold. Tenant had a reasonable excuse for her default and a meritorious defense to deregulation. The case was sent back to the DRA for income verification with the State Department of Taxation and Finance.

Mann: DHCR Adm. Rev. Docket No. WE410016RT (7/17/08) [3-pg. doc.]