HPD Can Deny J-51 Certificate to Landlord Who Rented to Tenants Before C of O Issued

Landlord sued HPD after HPD denied landlord's application for a Certificate of Eligibility and Reasonable Cost for J-51 tax benefits in 2022. Landlord had applied for J-51 benefits based on rehabilitation of its building. HPD found that landlord wasn't in compliance with the J-51 Program's eligibility requirements because it violated various provisions of law by moving tenants into the building before a Certificate of Occupancy was issued. The court ruled against landlord. HPD's ruling wasn't arbitrary or capricious. HPD properly found that the building wasn't in compliance with Multiple Dwelling Law provisions since the building didn't have a C of O allowing for the occupancy of the tenants who landlord had moved into the building. The fact that a C of O was later issued was irrelevant to the issue of whether landlord was eligible for J-51 Program benefits. 

DG 1096 Broadway LLC v. HPD: Index No. 507925/2023, 2024 NY Slip Op 30534(U)(Sup. Ct. Kings; 2/14/24; Sweeney, J)