Landlord Improperly Deregulated Apartment While Building Received J-51 Benefits

Tenant sought a ruling that his apartment had been improperly deregulated. The DRA ruled for tenant, and landlord appealed and lost. Landlord then filed an Article 78 court appeal. The DHCR agreed to take the case back for further consideration, but ruled again against landlord. The building received J-51 tax benefits for the years 2001 through 2012. Apartments in buildings receiving J-51 tax benefits are subject to rent regulation for at least as long as those tax benefits remain in effect, and even if an apartment was previously deregulated. So, tenant's apartment couldn't have been deregulated in 2009 as claimed by landlord. Also, review of the unit's rent history showed that prior tenants weren't issued a vacancy lease but instead signed a month-to-month rent agreement. This wasn't a proper substitute for a vacancy lease under the Rent Stabilization Code. The DRA properly determined that no vacancy increase was warranted for those tenants. The apartment's legal regulated rent was $1,738.51, with a preferential rent of $1,095 per month.

Fresh Pond Realty Corp.: DHCR Adm. Rev. Docket No. JT110003RP (10/19/22)[3-pg. document]