No High-Rent/High-Income Deregulation for J-51 Apartment

August 31, 2010

LVT Number: #22851

Landlord applied for high-rent/high-income deregulation of tenant’s rent-stabilized apartment. The building was subject to stabilization solely as a result of landlord’s receipt of J-51 tax benefits. The DHCR ruled against landlord, finding the J-51 unit ineligible for luxury deregulation. Tenant’s leases also contained no J-51 rider informing tenant that rent-stabilization status would expire when J-51 benefits ended. Landlord appealed, claiming that the DHCR’s decision was arbitrary and unreasonable. The court ruled against landlord.

Landlord applied for high-rent/high-income deregulation of tenant’s rent-stabilized apartment. The building was subject to stabilization solely as a result of landlord’s receipt of J-51 tax benefits. The DHCR ruled against landlord, finding the J-51 unit ineligible for luxury deregulation. Tenant’s leases also contained no J-51 rider informing tenant that rent-stabilization status would expire when J-51 benefits ended. Landlord appealed, claiming that the DHCR’s decision was arbitrary and unreasonable. The court ruled against landlord. The DHCR properly applied the law on both issues.

73 Warren St. LLC v. DHCR: 116585/09, NYLJ 1202464396278 (Sup. Ct. NY; Gische, J; 7/16/10)

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