DHCR Mistakenly Ordered HUD Section 8 Building to Register as Rent Stabilized

The DHCR's DRA initiated a proceeding after finding that landlord failed to register its building with the DHCR as rent stabilized for 2018. This was based on NYC Dept. of Finance (DOF) records indicating that the building received J-51 tax benefits for the tax year between July 1, 2017, and June 30, 2018. The DRA notified landlord in November 2019 and gave 20 days to respond. But landlord apparently didn't answer and the DRA issued an order in January 2020, directing landlord to register the building with the DHCR. Landlord appealed and won. Landlord showed that the building was a multifamily project-based Section 8 development that was subject to HUD supervision. The building was under a current renewal contract with HUD, and therefore wasn't currently subject to DHCR jurisdiction. 

Kings Court Housing LLC: DHCR Adm. Rev. Docket No. IN210043RO (9/3/20) [2-pg. doc.]