DHCR Mistakenly Directed HDFC Co-op to Register as Rent Stabilized
LVT Number: #32309
The DHCR's Rent Administrator started a proceeding after finding that landlord failed to register its building as rent stabilized for 2018. The DRA made this determination based on review of NYC DOF records indicating that the building received J-51 tax benefits for the period between July 1, 2017, and June 30, 2018. The DRA issued an order on Dec. 11, 2019, directing landlord to register based on landlord's failure to respond to its notice directing rent registration.
Landlord appealed and won. Landlord pointed out that the building wasn't subject to rent stabilization because it was formed pursuant both to Public Housing Finance Law Article 11, Section 573 and Business Corporation Law Section 402. The DHCR agreed. HPD had approved the building as a Housing Development Fund Corporation (HDFC) in June 2008. The building's amended and restated regulatory agreement dated May 29, 2015, showed that the building was a cooperative with apartments owned by shareholders with restrictions on renting and subleasing. The building therefore wasn't within the DHCR's jurisdiction and the DRA's order was revoked.
155 Avenue C HDFC: DHCR Adm. Rev. Docket No. IN410026RO (9/29/22)[2-pg. document]