Apartment Was Eligible for Deregulation After J-51 Tax Benefits Ended

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2017. The DRA ruled against landlord, finding that tenant's lease didn't contain a J-51 rider while the building was receiving J-51 tax benefits. Since tenant had no notice of the automatic end of rent stabilization status following the end of J-51 benefits, landlord couldn't seek deregulation. Landlord appealed, and the case was reopened. Landlord showed that the apartment had been rent stabilized since 1969, prior to receipt of J-51 benefits at the building. The building received the tax benefits from 1985 - 2010. So landlord could seek luxury deregulation after the J-51 benefits expired without ever giving a J-51 lease rider to tenant. It also didn't matter that landlord didn't register the apartment with DHCR from 2004 - 2012. And high-rent/high-income deregulation wasn't dependent on a J-51 lease notice rider.

BLDG Management Co., Inc.: DHCR Adm. Rev. Docket No. FW410013RO (2/12/19) [6-pg. doc.]