High-Rent/High-Income Deregulation Doesn't Apply to Rent-Controlled Tenant

Landlord applied for high-rent/high-income deregulation of tenant's rent-controlled apartment in 2016. The DRA ruled against landlord because, as a matter of law, the apartment remained exempt from high-rent/high-income deregulation after J-51 benefits expired as a matter of law. Landlord appealed and lost. In the case of RAM 1 LLC v. DHCR, the First Department appeals court had ruled that the governing statute concerning the effect of J-51 benefit expiration was different for rent-controlled and rent-stabilized tenants.

Mayflower Development Corp.: DHCR Adm. Rev. Docket No. ER420074RO (8/1/17) [4-pg. doc.]