Tenant Didn't Receive Proper J-51 Lease Rider

July 26, 2016

LVT Number: #27122

Landlord asked the DHCR to rule on whether its building was exempt from rent stabilization. Landlord claimed that the building was substantially rehabilitated between 1989 and 1990, and received J-51 tax benefits. Landlord claimed that when the J-51 benefits expired, tenant became deregulated since tenant had received a J-51 lease rider advising him that J-51 and rent stabilization status would expire. The DRA ruled against landlord, who appealed and lost. Tenant wasn’t properly advised of the building’s J-51 status.

Landlord asked the DHCR to rule on whether its building was exempt from rent stabilization. Landlord claimed that the building was substantially rehabilitated between 1989 and 1990, and received J-51 tax benefits. Landlord claimed that when the J-51 benefits expired, tenant became deregulated since tenant had received a J-51 lease rider advising him that J-51 and rent stabilization status would expire. The DRA ruled against landlord, who appealed and lost. Tenant wasn’t properly advised of the building’s J-51 status. Tenant’s initial 1999 lease included a Rent Stabilization Rider, and a J-51 Rider that wasn’t initialed or signed by tenant or landlord. Tenant remained rent stabilized.

 

 

 

 

Don tom Realty: DHCR Adm. Rev. Docket No. EP210006RP (6/17/16) [3-pg. doc.]

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