Apartment Not Deregulated When Pass-On Tenant Takes Over

Tenant in a building subject to rent stabilization due only to J-51 tax benefits remained rent stabilized after J-51 benefits ended, because landlord didn't include a J-51 expiration notice rider in all of tenant's renewal leases. When tenant moved out, he left a remaining family member who claimed pass-on rights. Landlord asked the DHCR if the apartment remained rent stabilized. Ordinarily, when rent-stabilized tenant vacates an apartment in a J-51 building after the benefits have expired, the apartment is no longer rent stabilized unless the building otherwise qualifies for rent regulation. In an opinion letter, the DHCR said that tenant's apartment remained rent stabilized for pass-on tenant because there was no vacancy. The vacancy is what triggers the deregulation.

DHCR Opin. Ltr. by Michael B. Rosenblatt (10/21/05) [2-pg. doc.]