Tenant Not Properly Notified of Termination of J-51 Status

Tenant complained that landlord refused to renew his rent-stabilized lease. Landlord claimed that tenant was no longer rent stabilized because landlord's J-51 tax benefits had ended and the building wasn't otherwise subject to rent regulation. The DRA ruled against tenant and dismissed his complaint. Tenant appealed, arguing that the notice provisions contained in a rider to her renewal lease in effect at the time the J-51 tax benefits ended didn't comply with Rent Stabilization Code requirements. She also said that landlord continued to give her rent-stabilized renewal leases for several years after J-51 benefits expired, and that none of those later renewal leases contained a J-51 rider. The DHCR ruled for tenant and reopened the case. The rider attached to tenant's original lease, as well as to her first renewal lease, which was in effect when the J-51 benefits expired, didn't provide the required notice concerning the expiration of J-51 tax benefits and the resulting deregulation of the apartment. Therefore, tenant's apartment wasn't deregulated when the building's J-51 tax benefits expired.

Weisenthal: DHCR Adm. Rev. Docket No. VD410016RT (9/5/07) [4-pg. doc.]