J-51 Building Exempt from Deregulation Even After Benefits Expire
LVT Number: #22281
Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment. The DRA ruled against landlord. Tenant's apartment had become rent stabilized solely based on landlord's receipt of J-51 tax benefits for the building. So, under Rent Stabilization Law Section 26-504.1, the apartment was exempt from luxury deregulation. Landlord appealed, arguing that the building's J-51 benefits had expired long before, and therefore the apartment should be eligible for luxury decontrol. The DHCR ruled against landlord. Apartments that are subject to rent stabilization solely by virtue of J-51 benefits aren't eligible for luxury deregulation, even after the tax benefits expire.
Isdahl: DHCR Adm. Rev. Docket No. XF410034RO (9/17/09) [2-pg. doc.]