Co-op Not Rent Stabilized After Getting J-51 Benefits

Tenant complained of a rent overcharge. The DRA ruled against tenant and dismissed the complaint because tenant's apartment wasn't rent stabilized. The building had been converted to cooperative ownership in 1972, and tenant had moved into the apartment in 2002. Tenant appealed. He wasn't the cooperative shareholder who had a proprietary lease to the apartment. He said the building was receiving J-51 tax benefits. Landlords that receive J-51 benefits must give tenants rent-stabilized leases for as long as the benefits are received. The DHCR ruled against tenant. Rules of the City of New York Section 5-03(f)(2)(i) states that apartments in co-op or condominium buildings aren't subject to rent stabilization upon receipt of J-51 benefits.

Navarro: DHCR Adm. Rev. Docket No. UJ410034RT (9/12/07) [2-pg. doc.]