Luxury Deregulation Case Reopened to Revoke Deregulation

Landlord applied for high-rent/high-income deregulation of rent-stabilized tenant's apartment in 2008. The DRA ruled for landlord based on tenant's failure to respond to the notice of the application. Tenant filed a PAR more than a year later, which was dismissed as untimely in April 2010. Tenant then filed a request for reconsideration, arguing for the first time that the apartment wasn't eligible for deregulation because the building was receiving J-51 tax benefits. The DHCR ruled against tenant because there was no fraud, illegality, or irregularity in denying the untimely PAR. Tenant then filed an Article 78 court appeal, and the DHCR asked to take the case back for reconsideration.

The DHCR then ruled for tenant. Since the building was receiving J-51 benefits at the time that the Income Certification Form was sent to tenant in January 2008, the apartment was ineligible for high-income/high-rent deregulation that year.

Langford: DHCR Adm. Rev. Docket No. ZD410015RP (4/12/17) [6-pg. doc.]