HPD Must Reconsider Landlord's Application for 421-a Tax Benefits

February 1, 2002

LVT Number: 15614

Landlord applied to HPD for eligibility in the Real Property Tax Law Section 421-a benefit program. Landlord claimed that it was eligible because it was building a new residential building on the underutilized site of a former commercial building. HPD ruled against landlord, finding landlord hadn't shown the site was underutilized. Landlord appealed. The appeals court ruled for landlord and said that HPD must reconsider landlord's application. HPD didn't explain why it rejected landlord's method for valuing the property and analyzing underutilization.

Landlord applied to HPD for eligibility in the Real Property Tax Law Section 421-a benefit program. Landlord claimed that it was eligible because it was building a new residential building on the underutilized site of a former commercial building. HPD ruled against landlord, finding landlord hadn't shown the site was underutilized. Landlord appealed. The appeals court ruled for landlord and said that HPD must reconsider landlord's application. HPD didn't explain why it rejected landlord's method for valuing the property and analyzing underutilization. So the court can't determine if HPD's decision was reasonable or not.

845 UN Limited Partnership v. HPD: NYLJ, 1/30/02, p 18, col. 4 (Sup. Ct. NY; Friedman, J)

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