Tenant Didn't Receive J-51 Rider with Every Renewal Lease

Tenant complained of rent overcharge. Landlord argued that tenant was no longer rent stabilized after the expiration of the building’s J-51 tax benefits in 1996, and that tenant’s initial and relevant renewal leases included a rider notifying tenant that the apartment would be deregulated after J-51 benefits expired. The building was constructed after Jan. 1, 1974. The DRA ruled for tenant, finding that tenant remained rent stabilized because landlord didn’t include J-51 lease riders in all of tenant’s renewal leases. The DRA also found a rent overcharge. Both sides appealed. Landlord claimed that the DHCR shouldn’t examine leases issued more than four years before the complaint was filed. But, for purposes of whether tenant received adequate notices concerning the expiration of J-51 benefits, the four-year rule didn’t apply. The DRA properly found that the apartment remained rent stabilized until tenant moved out. Tenant argued that his rent should have been rolled back to the last registered rent in 1998. But the DHCR ruled that the filing of an improper exit registration in 1999 didn’t by itself trigger a freezing of the collectible rent back to 1998. There also was no evidence of fraud in this case.

Kostic/Amdar Company, LLC: DHCR Adm. Rev. Docket Nos. EN410023RT, EN410025RO (1/11/17) [6-pg. doc.]