Tenants in Occupancy During J-51 Benefit Period Didn't Receive J-51 Lease Riders

Landlord applied to the DHCR for a determination that its building was exempt from rent stabilization due to substantial rehabilitation of the property in 1989. The DRA ruled for landlord since the sub rehab took place after Jan. 1, 1974. However, when landlord did the work it also applied for J-51 tax benefits that made the building subject to rent stabilization for the tax benefit that lasted from 1989 to 2012. So tenants of four apartments, who were in occupancy during the J-51 benefit period and who weren't given the required J-51 lease riders explaining the impact of the eventual J-51 tax benefit expiration, remained rent stabilized until they moved out. 

A fifth tenant appealed and also was found to have rent-stabilized status. She had lived in the building since 2004. In 2016 she moved into her husband's apartment in the building. The leases to that apartment didn't contain a J-51 rider. Landlord didn't contest this tenant's succession rights claim to her late husband's apartment or her right to remain as rent stabilized. The DHCR ruled for tenant and added her apartment to the list of those whose units remained rent stabilzied until they vacated.

Erdem: DHCR Adm. Rev. Docket No. LW210006RT (2/29/24)[2-pg. document]