Low-Income Co-op Not Subject to Rent Stabilization or Registration Requirements

The DHCR's Rent Administrator issued an order directing landlord to register apartments in its building as rent-stabilized for 2018.  The DRA based its directive on information found in the NYC Dept. of Finance database showing that the building received J-51 tax benefits for the 2017/2018 tax year. And landlord hadn't answered the DRA's notice concerning the registration status.

Landlord appealed and won. Landlord pointed out that, in 1988, HPD designated landlord, a housing development fund corporation, as a qualified and eligible sponsor for the construction of low-income cooperative units in the building. Landlord also showed that it was a corporation formed under the Business Corporation Law and organized under Article XI of the Private Housing Law of New York State. A regulatory agreement for the building also showed that it was a co-op with units owned by shareholders. So the building wasn't rent stabilized.

105th Street Homesteaders HDFC: DHCR Adm. Rev. Docket No. IN410004RO (6/4/21)[2-pg. document]