Was Building Rent Stabilized After J-51 Benefit Expired?

Tenant complained that she was rent stabilized although landlord claimed that she was deregulated. Landlord argued that the building's J-51 benefits had expired in 2003 and that tenant, therefore, was no longer subject to rent stabilization. The DHCR ruled for tenant, finding that the building was otherwise rent stabilized. It contained six or more apartments on the base date. Landlord appealed, claiming that it received J-51 benefits because it had substantially rehabilitated the building in 1985. Therefore, the building was no longer rent stabilized after the J-51 benefits expired. The court sent the case back to the DHCR for further consideration of landlord's claim. Later, landlord and tenant signed a settlement agreement. Tenant agreed to move out, and landlord gave tenant some compensation. The DHCR approved the settlement and made no further ruling on the building's rent-stabilization status.

Kestral Company: DHCR Adm. Rev. Docket No. UH420013RP (11/2/06) [2-pg. doc.]