Low-Income Co-op Building Wasn't Subject to Rent Stabilization
LVT Number: #31742
The DHCR started a proceeding against landlord after finding that landlord failed to register a building that was subject to rent stabilization due to receipt of J-51 tax benefits between July 1, 2017, and June 30, 2018. The DRA relied on DOF records and directed landlord to register the building and its apartments for the year 2018.
Landlord appealed and won. The DHCR agreed with landlord that the building wasn't subject to rent stabilization. In 1991, HPD sold the building to Northeast Brooklyn Community Land Corporation, a company organized to rehabilitate four existing multiple dwellings into a low- and moderate-income, limited profit cooperative. The building was then leased to landlord in 1992 as a nonprofit, low-income, limited equity cooperative to be run in accordance with an existing regulatory agreement. The landlord was a corporation formed under New York's Business Corporation Law and organized under Article XI of the Private Housing Finance Law. Landlord's proprietary lease also showed that the building was a co-op with all units owned by shareholder members. The building wasn't subject to DHCR jurisdiction at the time of the DRA's order.
Hancock Manor HDFC: DHCR Adm. Rev. Docket No. IT210001RO (11/5/21)[2-pg. document]