Is Building Operated for Charitable Purpose Exempt from Rent Stabilization Despite J-51?

February 16, 2016

LVT Number: #26771

Landlord sued to evict tenant for nonpayment of rent. The court granted tenant’s request to dismiss the case after landlord presented its side of things. Landlord appealed, and the case was reopened. Landlord showed that tenant’s apartment was contained in a building operating exclusively for charitable purposes on a nonprofit basis and therefore was exempt from rent stabilization.

Landlord sued to evict tenant for nonpayment of rent. The court granted tenant’s request to dismiss the case after landlord presented its side of things. Landlord appealed, and the case was reopened. Landlord showed that tenant’s apartment was contained in a building operating exclusively for charitable purposes on a nonprofit basis and therefore was exempt from rent stabilization. Landlord’s proof was sufficient to overcome tenant’s motion to dismiss, notwithstanding tenant’s defense that the apartment was rent stabilized because landlord received J-51 tax benefits and a federal Section 312 loan. The case was sent back for a new trial.

 

 
310 East 4th Street HDFC v. Brandstein: 50 Misc.3d 135(A), 2016 NY Slip Op 50051(U) (App. T. 1 Dept.; 1/19/16; Shulman, JP, Hunter Jr., Ling-Cohan, JJ)

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