Units in J-51 Building Covered Until Vacancy

Facts: Landlord owned four rent-controlled apartments in a co-op building that received J-51 tax program benefits. Landlord asked the court to decide if the apartments were still rent controlled. The building was empty between 1969 and 1972, and the J-51 benefits had now ended. Landlord claimed that the apartments should be decontrolled. Court: Landlord loses. In 1985, the J-51 law was amended to require that apartments subject to rent control under J-51 would remain regulated until the first vacancy after the benefits ended unless tenants got notice that the regulation would terminate when the J-51 benefits ended. Since there had been no vacancies and no notice to tenants, the apartments remained rent controlled.

Haberman v. Wright: NYLJ, 1/2/01, p. 29, col. 6 (Sup. Ct. NY; Weissberg, J)