J-51 Improvements Weren't Completed on Time

Landlord co-op corporation began substantial building renovation in April 1985. On August 31, 1988, landlord applied to HPD for J-51 tax benefits for the work done. HPD denied landlord's application because landlord hadn't completed the work within the three-year legal limit from the date of the Attorney General's acceptance of landlord's co-op conversion plan on May 27, 1983. The court awarded landlord J-51 benefit certification for boiler/ burner installation, but denied certification for roofing work. Both landlord and HPD appealed. The appeals court ruled that landlord wasn't entitled to J-51 benefits for either improvement. Landlord had neither gotten, nor made any attempt to get, a ``sign off'' from the DOB on the boiler/burner permit within three years of the conversion plan acceptance date. It didn't matter that landlord got a certificate of operation from the DEP within the three years. Under HPD's rules, only DOB had the authority to approve the entire project as complete. With regard to the roofing, landlord didn't prove that the work had been done within the three-year limit.

Matter of 31171 Owners Corp.: NYLJ, p. 21, col. 3 (6/16/93) (App. Div. 1 Dept.; Murphy, JP, Sullivan, Wallach, Ross, Kassal, JJ)