No Deregulation of Apartment in 421-a Building

Landlord applied for high-rent/high-income deregulation of tenant's apartment. Landlord claimed that the apartment had become rent-stabilized solely pursuant to Real Property Tax Law (RPTL) 421-a, and that the exemption from luxury deregulation for 421-a units didn't apply anymore because the building's 421-a tax benefits had expired. The DHCR ruled against landlord. Tenant's leases didn't contain proper notification that the 421-a benefits and rent-stabilization status would expire at a specified time. Because of this defect, the apartment remained subject to rent stabilization after the 421-a benefits ended. So, since tenant remained a rent-stabilized tenant under RPTL 421-a, she was exempt from high-rent/high-income deregulation.

Rivergate L.P.: DHCR Adm. Rev. Docket No. WG410006RK (9/25/08)[6-pg. document]