Apartment Is Subject to High-Rent/High-Income Deregulation After J-51 Benefits End

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2013. The DRA ruled for landlord since the legal rent was $2,500 or more and tenant admitted that his household income exceeded $200,000 per year in 2011 and 2012. Tenant appealed and lost. Tenant argued that his apartment became rent stabilized solely as a result of the building's receipt of J-51 tax benefits. Therefore, he should have remained rent stabilized after the J-51 benefits expired. But the DHCR and public records showed that the apartment was rent stabilized before the building began receiving J-51 benefits on July 1, 1991. The J-51 benefits expired on June 30, 2008. So tenant's apartment was eligible for high-rent/high-income deregulation. 

Morrow: DHCR Adm. Rev. Docket No. EM410034RT (7/25/18) [6-pg. doc.]