Apartment Remained Covered After 421-a Benefit Expired

Facts: Landlord sued to evict tenant when his lease expired. Tenant claimed apartment was covered under rent stabilization. Prior landlord got a tax benefit under Real Property Tax Law (RPTL) Section 421-a which expired, after 10 years, on Dec. 9, 1992. Tenant's apartment became subject to rent stabilization solely as a condition of landlord getting the 421-a benefit. Tenant moved into the apartment under a one-year lease in October 1985. His lease was periodically renewed until 1994. It hadn't been renewed since. None of tenant's leases contained any notice to tenant that the apartment would be subject to exemption from rent stabilization after the 421-a benefit expired. Court: Landlord loses. Since 1988, RPTL Section 421-a(2)(f) specifically states that when the tax benefits expire, the apartment becomes destabilized only if vacated, or if tenant is given a notice with each lease---new and renewal, stating in at least 12-point type, that the apartment is subject to destabilization when the tax benefits end. Since tenant got no such notices, he remained rent-stabilized and was entitled to a renewal lease.

Giannattasio v. Cialini: NYLJ, p. 33, col. 6 (6/14/95) (Civ. Ct. Kings; Lau, J)