HDFC Building Receiving J-51 Tax Benefits Was a Co-op

The DHCR initiated a proceeding by issuing a Notice of Proposed Action to landlord in 2019 after finding that landlord failed to properly register apartments as rent stabilized for 2018 based on DOF records indicating that the building received J-51 tax benefits for the period between July 1, 2017, and June 30, 2018. In 2020, the DRA issued an order directing landlord to register the building and all its apartments as rent stabilized for the 2018 registration year.

Landlord appealed and won, after demonstrating that the building was a corporation organized under Private Housing Finance Law Article XI and was a cooperative containing six apartments and six members, each with a 100-year proprietary lease for his apartment. In 1979, HPD designated the building owner as a company organized exclusively for the purpose of developing a housing project for low-income persons. And the building was operated by a cooperative corporation with shareholder tenants who were members of a cooperative board. So, the building wasn't subject to rent stabilization and the DRA directive to register rents was revoked.

370 Hooper Street HDFC: DHCR Adm. Rev. Docket No. IU210005RO (10/15/21)[2-pg. document]