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Income Deregulation Issue

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Income Deregulation Issue

Postby bk_tenant_123 » Fri Jul 28, 2017 7:33 pm

Hi,

I was out of the country and did not receive the income verification form. I make less than $200k a year and just received my lease renewal but it had a rider on it with this form http://www.nyshcr.org/Forms/Rent/ralr2.pdf dated April 28, 2017.

I only received this form today and am confused about next steps. Do I need to send a filled out version of this form (http://www.nyshcr.org/Forms/Rent/ra93CF.pdf) to the landlord or to the Housing Authority? I understand that there is a 60 day window but did that start on April 28 or July 7 when the lease renewal offer is dated?

I am nervous that they are going to deregulate my apartment even though I am more than eligible.

What should I do?
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Re: Income Deregulation Issue

Postby TenantNet » Sat Jul 29, 2017 12:02 am

First off, we'll look at the forms you cited and ask for more info if needed. Just make sure you don't post any personal info on the forum as this is open to the public. For any personal information, if we ask, you can put it on a Private Message (see the PM button).

Please verify you are a regular rent stabilized tenant. You said "Housing Authority" which usually means NYCHA or Public Housing. There is also Section 8, 421-a, J51a and other programs. Are you under any of them?

When did you move into the apartment? Was it under a regular RS lease?

When does your current lease start and end? Has the LL sent to you a lease renewal? If so, when was it sent?

Is there an actual income deregulation proceeding that has been started at DHCR? If so, when was that filed?

Is there a reason the LL thinks your income exceeds the $200,000 threshold? Usually LLs won't make the filing unless they have some reason to think there's something there. Is it the luxury cars you drive? Or is it the mansion in the Hamptons?

Also, and we may say this time and time again, while we can offer some guidance, at no time can we (or any other internet forum) substitute for legal advice, and only from a tenant attorney that has experience in high income issues.
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Re: Income Deregulation Issue

Postby bk_tenant_123 » Sat Jul 29, 2017 4:55 am

Thanks so much for getting back to me.

I can verify that I am in a rent stabilized apartment on a rent stabilized lease. My current least started November of 2016 and ends November 2017. I am not under any special programs.

The LL sent me a lease renewal (http://www.nyshcr.org/forms/rent/rtp8.pdf) on Thursday July 27 and it hat the rider (http://www.nyshcr.org/Forms/Rent/ralr2.pdf) attached. It is worth noting that the least renewal document is Dated July 7 so worth noting the LL did not send it for 20 days. I am given a 1 or two year option starting Nov 17.

I am not sure about the actual income deregulation proceeding. I did some research and it is confusing weather the first form (http://www.nyshcr.org/Forms/Rent/ra93CF.pdf) was a request for the income information or a notice that the LL had put it in front of the DHCR. I have not received any documents or notice directly from the DHCR including a case number which I read I should have within 20 days if the proceedings had begun but really not sure.

Ha well I am not sure why they think I am making more than $200k but I do have an amazing apartment in a fancy neighborhood so think they stand to make a lot of $$$ by bringing this up to market rent.

I do not know what to do. If the case was brought before how do I fight it? I just hope it is not too late to turn in the form to the DHCR.
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Re: Income Deregulation Issue

Postby TenantNet » Sat Jul 29, 2017 10:02 am

Why would your lease start on Nov. 17? That's highly unusual. Most leases start at the beginning of a month, i.e., Nov. 1st or Dec. 1st. Even if you moved in mid-month, leases are still usually started at the beginning of a month, both for the term of a lease and for the payment of rent.

Look on the 2nd page of the RTP-8 form. Renewal leases must be sent between 90 and 150 days prior to the expiration of the current lease. In your case that would be between Jun 17 to Aug 17.

That it was dated July 7 and not sent until later makes no difference. What's important is the term of the lease, in your case from November 17, 2017 though November 16 of 2018 for a one-year renewal or 2019 for a two-year renewal.

The rider you received, RA-LR2, notifies you that a high-income deregulation proceeding has been filed by the LL, and the included text becomes part of the renewal lease. It should have a date as to when the proceeding commenced (when was that?).

If there are any questions, especially if you go out-of-town often, I would immediately contact a tenant attorney who has experience in high income dereg cases. Tenants have been evicted for forgetting or not replying to these notices. Because these things can get tricky, no matter what I would consult with a tenant attorney as soon as possible. They may know things as to procedure that you won't get from us or from DHCR's instructions.

It appears to me that the form RA-93CF is what commences the proceeding. So this is just the start. Did the owner complete Part A?

You should complete Part B with accurate info on who is living in the unit and whether or not they filed NYS tax returns, and return it to the owner. DO not send your actual tax information.

As with anything, read and follow the instructions very carefully. Make copies of everything (I make copies before I add information and after), and send certified mail RRR.

Pay attention to the differences between a) high-rent deregulation (HRD) and b) high income deregulation (HID)

For HRD, the lawful legal rent must be over the threshold, in 2017 in NYC, that's $2,700. It can change every year. If the rent is over $2,700, the deregulation will not take effect until the next tenant takes occupancy.

For HID, DHCR will determine the income of all occupants in the apartment, and the unit would not have to wait until the next tenant in order to be deregulated.

VERY IMPORTANT: for HID, the income of the unit's occupants must exceed $200,000 for EACH of the last two years, AND - VERY IMPORTANT - rent must also exceed the HRD threshold, this year being $2,700. If your rent is below $2,700 then the case should be dismissed. If you suspect the legal rent should be below that amount, you should file for an overcharge and see how that impacts the HID proceeding.

Of course you should renew the lease. Do not let that fall by the wayside with all of this. Make sure you make copies and return by certified mail.

DHCR is hiding its Fact Sheet #36 on deregulation (they occasionally do that), but you can see this older one at https://goo.gl/Pt1GG8. Note that in this old fact sheet, the HRD threshold is listed as $2,500. It was that level between 2011 and 2015, but increased to $2,700 in 2015. There might be other differences as well, but it appears to me that it's still correct on most everything else. You can always call DHCR with questions. Better ... get legal help.

Pay close attention to the instructions. According to the Fact Sheet and the RA-93CF, the certification form must be served on you prior to May 1st. Service must be either personal (handed to you) or by mail. Conspicuous Place Service (attaching to your door) is not allowed for a HID service.

Courts are sometimes lenient in cases like this, but you must remain on top of things.
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