Apartment in Building Receiving J-51 Tax Benefits Not Subject to Luxury Deregulation

Landlord applied in 2013 for high-rent/high-income deregulation of tenant’s rent-stabilized apartment. The DRA ruled against landlord, finding that the building was receiving J-51 tax benefits during the relevant period and therefore tenant’s apartment wasn’t subject to deregulation. Landlord appealed and lost. Landlord argued that the building’s J-51 benefits expired on June 30, 2012, and therefore didn’t apply in 2013. But public records showed that the building was still receiving J-51 benefits in May 2013 when landlord sent tenant the Income Certification Form. There was a remaining tax abatement of $11,275 at the end of the 2011/2012 tax year, and a zero balance at the end of the 2012/2013 tax year. 

Rossmil Associates, LP: DHCR Adm. Rev. Docket No. DU410040RO (6/29/16) [4-pg. doc.]