Apartment in J-51 Building Was Rent Stabilized

Tenant sued landlord for rent overcharge, claiming that she was fraudulently deregulated. Tenant claimed that her apartment originally was a one-bedroom and was illegally converted to a three-bedroom by landlord. Tenant said that landlord fraudulently registered the apartment with the DHCR as exempt from rent stabilization. She also argued that registrations since 1997 were fraudulent because landlord received, and continued receiving, J-51 benefits for the building. The court ruled for tenant. Tenant was rent stabilized since landlord was getting J-51 tax benefits. And since landlord failed to show that the apartment was legally altered, it couldn't collect rent from tenant. But a trial was needed to determine how much of a rent increase would legally be permitted based on the 1996 alterations, whether the rent overcharge was willful, and whether landlord acted fraudulently in removing the apartment from rent stabilization.

Soskin v. D. Camilleri LLC: Index No. 106739/10, NYLJ No. 1202479054071 (Sup. Ct. NY; 1/12/11; Rakower, J)