High-Rent Deregulation Doesn't Apply to J-51 Building

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment. The DRA ruled against landlord because tenant's apartment became rent stabilized due to landlord's receipt of J-51 tax benefits. Landlord appealed, pointing out that the J-51 benefits for the building expired in 1996. The DHCR ruled against landlord. Rent Stabilization Code Section 2520.11(s)(2) specifically exempts from high-rent/high-income deregulation apartments that become rent stabilized solely based on landlord's participation in the J-51 program. These apartments aren't eligible for luxury deregulation, even after the J-51 benefits expire.

250 Mercer Apartments LLC: DHCR Adm. Rev. Docket No. VG410011RO (10/18/07) [3-pg. doc.]