Tenant in Converted Co-op Building Receiving J-51 Benefits Not Subject to Deregulation

Landlord applied in 2013 for high-rent/high-income deregulation of tenant's rent-stabilized apartment. The DRA ruled against landlord because the building was receiving J-51 tax benefits at the time of landlord's application. Landlord appealed, claiming that because the building was converted to cooperative ownership in July 1984 before J-51 benefits were received, the building wasn't required to be rent stabilized when landlord received the J-51 tax benefits. The DHCR reopened the case and sent it back to the DRA for further consideration but later reconsidered and again determined that the building was rent stabilized before both the building's conversion to co-op ownership in July 1984 and the building's receipt of J-51 tax benefits starting July 1, 2005. The DHCR rent registration records also showed that tenant's apartment had been continuously occupied by tenant since April 1984 to date. Therefore, high-rent/high-income deregulation didn't apply to tenant's apartment. 

ROC-Century Associates, LLC: DHCR Adm. Rev. Docket No. DX410001RK (7/11/18) [9-pg. doc.]