Apartment Was Properly Deregulated After J-51 Tax Benefits Expired

Tenant who had moved into his apartment in 2016 complained to the DHCR of rent overcharge and improper apartment deregulation in 2020. The DRA ruled against tenant, finding that the apartment was lawfully deregulated in 2010 due to high-rent vacancy, although the unit remained rent stabilized because the building was receiving J-51 tax benefits at that time. The apartment remained rent stabilized solely on that basis until the benefits expired in 2012 and the prior tenant vacated in 2015.

Tenant appealed and lost. Although landlord had incorrectly registered the apartment as deregulated in 2010 based on its misunderstanding of the J-51 benefit's effect on deregulation, there was no question that the unit was in fact deregulated when the complaining tenant moved in.

Wall: DHCR Adm. Rev. Docket No. LX610024RT (3/18/24)[4-pg. document]