Tenants Without J-51 Lease Riders Remain Rent Stabilized

Tenant asked the DHCR for a ruling on her rent stabilization status in 2014 after landlord sent notice that the apartment was no longer subject to rent stabilization due to expiration of the building's J-51 tax exemption status. Tenant had lived in the building for 21 years and said that, except for her 2012 renewal lease, none of her prior leases contained J-51 Riders advising tenant that the unit would become exempt when the J-51 tax benefits expired. The building became subject to rent stabilization only as a result of the J-51 benefits and was not otherwise regulated.

After conducting a hearing, the DRA ruled for tenant. Landlord appealed and lost. The DHCR's ALJ found that four of the leases executed between landlord and tenant, in 2005, 2006, 2008, and 2010, didn't contain the J-51 Riders. So the apartment remained subject to rent stabilization until tenant moved out, due to landlord's failure to provide the required J-51 Rider notification in all of tenant's leases. In a second case involving a different tenant in the same building, the DHCR also ruled that the tenant remained rent stabilized due to missing J-51 Riders for some of tenant's leases.

Don Tom Realty Corp.: DHCR Adm. Rev. Docket Nos. HS230004RO, HS230005RO (11/10/21)[6-pg. document]