Unpaid Water Bills Delay J-51 Benefits

Facts: Landlord applied for J-51 tax abatement benefits based on building renovation. The city ruled that the abatement wouldn't start until all outstanding water bills were paid. Landlord appealed, claiming that the building had been vacant for 20 years and that there was no water service. But, landlord had paid $13,000 in water bills between 1986 and 1992. Land-lord still owed $4,500. The last water bills were issued in August 1992. The city claimed that landlord had never previously contested those bills. Since landlord didn't start an Article 78 proceeding in court within four months of getting the bills, it was too late to question them now. Landlord claimed it wasn't too late because it was only in April that it found out the unpaid water bills would delay the J-51 benefits. Court: Landlord loses. The four-month period to challenge the water bills began to run when landlord got the bills. Receipt of a water bill is a final and binding city agency determination.

45435 Realty Co. v. City of New York: NYLJ, p. 22, col. 1 (7/9/93) (Sup. Ct. NY; Tolub, J)