Improperly Deregulated Tenant in J-51 Building Can Raise Rent Fraud Claim

LVT Number: #31288

Tenant in a rent-stabilized building that received J-51 tax benefits until 2013 sued landlord, claiming rent overcharge and improper deregulation. Landlord gave tenant an unregulated lease when tenant moved into the building in 2010 and several unregulated renewal leases. Tenant claimed that landlord engaged in a fraudulent scheme to deregulate his apartment. Landlord asked the court to dismiss the case.

The court ruled against landlord, and agreed that tenant made a colorable claim of fraud, thereby permitting review of rent history going back more than four years.

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