J-51 Tenant Not Subject to Deregulation

Landlord applied in 2008 for high-rent/high-income deregulation of tenant's rent-stabilized apartment. The DRA dismissed landlord's application because the apartment became subject to rent stabilization solely as a result of J-51 tax benefits. Landlord appealed, arguing that the J-51 benefits had expired. The DHCR ruled against landlord. Under Rent Stabilization Law Section 26-504.1 and Rent Stabilization Code Section 2520.11(s), high-rent/high-income deregulation clearly was inapplicable to buildings that became subject to rent stabilization solely as a result of J-51, even after the benefits expired.

73 Warren Street LLC: DHCR Adm. Rev. Docket No. XG410019RO (10/1/09) [3-pg. doc.]