Apartment Remains Rent Stabilized After J-51 Benefits Expire

Landlord applied in 2013 for high-rent/high-income deregulation of tenant’s apartment. The DRA terminated that proceeding because a prior DHCR order issued in 2001 already found the apartment exempt from rent regulation. Tenant appealed, claiming that the prior DHCR order was in error. The prior luxury deregulation order was issued before landlord received J-51 tax benefits for the building and therefore became void because the apartment resumed rent-stabilized status due to J-51. The DHCR ruled for tenant. The apartment became rent stabilized again when landlord got J-51 benefits. The J-51 benefits expired in 2010. But the apartment wasn’t subject to high-rent/high-income deregulation after the J-51 benefits expired since the apartment wouldn’t have been subject to rent stabilization except for receipt of the J-51 benefits. 

Denny: DHCR Adm. Rev. Docket No. DU410017RP (7/11/16) [12-pg. doc.]