Tenant Didn't Receive J-51 Lease Riders

Landlord applied for high-rent/high-income deregulation of rent-stabilized tenant's apartment in 2010. Tenant answered the DRA's notice of the application by stating that he was exempt from luxury deregulation because his building was receiving J-51 tax benefits. The DRA sent tenant several follow-up notices, again requesting income certification information. Tenant again stated only that he wasn't subject to deregulation. The DRA ruled for landlord based on tenant's failure to respond to its notices. Tenant appealed and won. The building was subject to rent stabilization only as a result of receiving J-51 benefits and was not otherwise rent stabilized. Tenant's initial rent was over $2,000, and the J-51 benefits had expired by the time that landlord sought deregulation of tenant's apartment. However, tenant's leases, including the renewal lease in effect at the time that the J-51 benefits expired, didn't contain a notice provision required under Rent Stabilization Law Section 26-504(c) advising tenant that he was subject to deregulation when the J-51 benefits expired. [Click here for a PDF of the original DHCR decision.]

Resnicow: DHCR Adm. Rev. Docket No. BU410032RT (8/5/14) [7-pg. doc.]