Rent-Controlled Apartment in Co-op Building Not Subject to Deregulation

In 2009, landlord applied for high-rent/high-income deregulation of tenant's rent-controlled apartment. The DRA ruled against landlord because the building was receiving J-51 tax benefits during the relevant time period. Landlord appealed and lost. Landlord, who owned tenant's apartment but not the building, argued that the building had been converted to cooperative ownership in 1988. Landlord also argued that it filed its application before the Court of Appeals October 2009 ruling in Roberts v. Tishman Speyer Properties and that the court's decision should only be applied to future cases. Appellate courts in New York had already ruled that the Roberts decision applied retroactively. And any exception from the Roberts rule that may apply to condominium or cooperative buildings doesn't apply in this case since tenant's apartment was rent controlled before the building obtained J-51 tax benefits, was still required to be rent controlled as a condition of receiving J-51 benefits, and the apartment didn't lose its rent-controlled status when tenant didn't buy his apartment shares upon conversion of the building to co-op status. 

16th Street Holding LLC: DHCR Adm. Rev. Docket No. BS420030RO (10/4/18) [7-pg. doc.]