Tenant Got Notice that Tax Benefits Had Expired

Facts: Landlord's building was temporarily subject to rent stabilization under the 421-a tax benefit program while landlord was getting the benefits. The benefits expired on June 30, 1997. Tenant moved into the building under a one-year lease ending Aug. 14, 1997. The lease was then renewed for one year. Landlord sued to evict tenant when he didn't move out upon the expiration of the renewal lease. Tenant claimed he was subject to rent stabilization because he didn't get proper lease riders notifying him that the 421-a benefits would expire. Landlord claimed that tenant had gotten proper notice. Court: Landlord wins. The Rent Stabilization Code requires landlord to give tenant a lease rider with every lease and renewal lease notifying him that the apartment will be deregulated upon the expiration of the lease in effect when the 421-a benefits expire. Landlord's lease rider notified tenant of the June 30, 1997 expiration date of the 421-a benefits but didn't specify that the apartment became deregulated when the current lease expired. This was a minor defect and didn't warrant continued rent stabilization coverage of tenant's apartment.

1438 Third Ave. Assocs. v. Billan: NYLJ, p. 31, col. 5 (6/11/99) (Civ. Ct. NY; Hoffman, J)