No High-Rent Deregulation for Tenant in J-51 Building

Landlord applied for high-rent/high-income deregulation of tenant's apartment because tenant's rent was more than $2,000 per month. Tenant asked the DHCR to dismiss the case, claiming that his apartment wasn't subject to deregulation. The DRA ruled for tenant. Landlord had received J-51 tax benefits for the building, so tenant's apartment was exempt from high-rent deregulation. Landlord appealed and lost. In a prior proceeding, the DRA had ruled that the building became subject to rent stabilization by virtue of receipt of J-51 tax benefits. Therefore, under Rent Stabilization Law Section 26-504.1, high-rent deregulation provisions didn't apply. Landlord never appealed that decision. Because the same issues were raised in this case, the DHCR's prior decision was binding. So tenant's apartment remained subject to rent stabilization solely as the result of the J-51 benefits, and wasn't subject to high-rent deregulation.

Isdahl: DHCR Adm. Rev. Docket No. VG410020RO (10/2/07) [4-pg. doc.]