Rent Frozen Since Landlord Didn't Promptly Correct Rent Registrations

Landlord sued to evict tenant after tenant's lease expired. Landlord claimed that tenant's apartment was unregulated, after prior high-rent vacancy deregulation. Tenant claimed that the apartment was improperly deregulated while the building received J-51 tax benefits and that he was rent stabilized. The court initially ruled for tenant but, after reconsideration, ruled for landlord. The court found that, although the apartment was treated as unregulated while the building received J-51 benefits, landlord could take retroactive increases where it promptly corrected DHCR rent registration statements after the Court of Appeals decided the Roberts case. Tenant appealed and argued that landlord failed to properly and promptly register the apartment.

The appeals court agreed and sent the case back to the lower court to dismiss the landlord's petition. Since landlord didn't promptly correct rent registration statements in 2012, and tenant moved into the unit in 2013, the apartment rent remained frozen at the last registered legal rent of $1,672. This was well below any high-rent deregulation threshold, and the apartment remained subject to rent stabilization.

EMA Realty, LLC v. Leyva: Index No. 2017-1353, 2019 NY Slip Op 29110 (App. T. 2 Dept.; 4/12/19; Pesce, PJ, Aliotta, Elliot, JJ)