Market-Rent Tenant in J-51 Building Is Rent Stabilized

(Decision submitted by David Hershey-Webb of the Manhattan law firm of Himmelstein, McConnell, Gribben, Donoghue & Joseph, attorneys for the tenant.)

Landlord sued to evict market-rent tenant in a building receiving J-51 tax benefits after tenant failed to sign a renewal lease. Tenant claimed that he was subject to rent stabilization and asked the court to dismiss the case. Landlord had claimed that the apartment was deregulated due to a high-rent vacancy. But New York's highest court has ruled that apartments in buildings receiving J-51 tax benefits aren't subject to vacancy or high-income deregulation. The court also awarded tenant attorney's fees. Landlord claimed that there should be no attorney's fee award since the law was unsettled. But the Court of Appeals decision in
Roberts v. Tishman Speyer Properties, LP, came down a year before landlord brought its eviction proceeding against tenant.

Second Lenox Terrace Associates, LLC v. Marshall: Index No. 250569/11 (Civ. Ct. NY; 1/4/12; Martino, J)