Tenants Weren't Exempt from Luxury Deregulation

Tenants of Stuyvesant Town and Peter Cooper Village sued landlord and sought a court ruling to block landlord from deregulating vacant rent-stabilized apartments when rents reached $2,000 per month. Tenants claimed that, because landlord received J-51 tax benefits, it was barred from luxury deregulation. The court ruled against tenants. The Rent Stabilization Law states that the luxury decontrol exclusion doesn't apply to apartments that became or become subject to the law as a result of landlord's receiving J-51 benefits. The law applies only to apartments that were rent stabilized solely as a result of J-51. The buildings here became subject to rent stabilization 18 years before landlord applied for J-51 benefits. Therefore, tenants didn't become subject to rent stabilization due to landlord's receipt of J-51 benefits.

Roberts v. Tishman Speyer Properties LP: NYLJ, 8/29/07, p. 27, col. 1 (Sup. Ct. NY; Lowe, J)