Rent Stabilization Coverage Ended When J-52 Benefits Expired

October 31, 2007

LVT Number: #19955

Tenants sued landlord and asked the court to declare that they were rent stabilized. The building had received J-51 tax benefits, and tenants claimed that they weren't properly notified that the benefits and their rent-stabilization status would end. The court ruled against tenants. Tenants appealed and lost. Landlord showed that tenants were rent stabilized solely as a result of landlord's receipt of J-51 tax abatement benefits. Landlord complied with the requirement that tenants be notified of the expiration of the J-51 benefits that ended their rent-stabilization status.

Tenants sued landlord and asked the court to declare that they were rent stabilized. The building had received J-51 tax benefits, and tenants claimed that they weren't properly notified that the benefits and their rent-stabilization status would end. The court ruled against tenants. Tenants appealed and lost. Landlord showed that tenants were rent stabilized solely as a result of landlord's receipt of J-51 tax abatement benefits. Landlord complied with the requirement that tenants be notified of the expiration of the J-51 benefits that ended their rent-stabilization status. And deficiencies in these notices were minor. There were no false or misleading statements in the notices.

Ogando v. Pamela Equities Corp.: NYLJ, 10/11/07, pg. 32, col. 4 (App. Div. 1 Dept.; Lippman, PJ, Tom, Marlow, Gonzalez, Malone, JJ)

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