Rent-Controlled Tenant in Co-op that Got J-51 Benefits Exempt from Luxury Deregulation

Landlord applied in 2011 and 2015 for high-rent/high-income deregulation of tenant's rent-controlled apartment. The DRA ruled for landlord in both cases. In separate proceedings, landlord appealed and lost. The building in which the rent-controlled apartment was located was converted to cooperative ownership and at some point received J-51 tax benefits. By law, and unlike rent-stabilized units, the apartment didn't become subject to luxury decontrol after the J-51 benefits expired. It also didn't matter that the apartment was located in a co-op building. Nonpurchasing tenants in a non-eviction conversion plan who lived in units already subject to rent regulation prior to a co-op conversion continue to remain subject to the already existing rent regulation. 

Ram I LLC: DHCR Adm. Rev. Docket No. FQ420029RO, FS420031RO (3/29/19) [14-pg. doc.]