Tenant Remains Rent Stabilized After Tax Benefits End

Tenant complained that landlord refused to offer her a rent-stabilized renewal lease. The DRA ruled for tenant and ordered landlord to give tenant a renewal. Landlord appealed, claiming that tenant had been rent stabilized solely due to Real Property Tax Law 421-a tax benefits. Landlord said the 421-a benefits had expired, so tenant no longer was rent stabilized. The DHCR ruled against landlord. Tenant's initial lease stated that tenant was rent stabilized solely by virtue of the 421-a program and that the tax benefits expired on June 30, 2005. But landlord's 421-a benefits actually expired on June 30, 2007. Tenant's Dec. 1, 2005, renewal lease didn't contain a notice about the expiration of the 421-a benefits. Under the Rent Stabilization Law, 421-a tenants become deregulated upon expiration of the 421-a benefits provided that each initial and renewal lease given to a tenant contained a notice of the 421-a expiration date and deregulation that would occur at that time. Because tenant's last renewal lease contained no such notice, tenant remained subject to rent stabilization.

300 East 64th Street Partners: DHCR Adm. Rev. Docket No. VL410009RO (2/14/08) [2-pg. doc.]