Prior Landlord Got J-51 Benefits

LVT Number: 12335

Facts: Prior landlord substantially rehabilitated an old law tenement building after Jan. 1, 1974, converting it to a Class-A multiple dwelling. Prior landlord applied for and obtained J-51 tax benefits in 1975 on the condition that tenants be subject to rent regulation for the period of the tax benefits. Tenants who moved in after Jan. 1, 1976, were given rent-stabilized leases. Prior landlord didn't renew tenants' leases after 1995.

Facts: Prior landlord substantially rehabilitated an old law tenement building after Jan. 1, 1974, converting it to a Class-A multiple dwelling. Prior landlord applied for and obtained J-51 tax benefits in 1975 on the condition that tenants be subject to rent regulation for the period of the tax benefits. Tenants who moved in after Jan. 1, 1976, were given rent-stabilized leases. Prior landlord didn't renew tenants' leases after 1995. In 1996 new landlord bought the building in a foreclosure sale and sued to evict six tenants, claiming they were no longer subject to rent stabilization because the J-51 benefits had expired. Court: Landlord loses. For J-51 tenants' rent stabilization status to expire, a landlord must notify tenants in a special rider issued with each lease and renewal lease that their apartments are subject to rent stabilization only by virtue of landlord's participation in the J-51 program and listing the approximate date that said benefits expire. Five of the six tenants involved never received such J-51 riders with their leases or renewal leases. So they remained subject to rent stabilization. The sixth tenant did receive J-51 riders with his leases. But his last renewal lease had expired and wasn't renewed. So landlord must offer this tenant a renewal lease, with the J-51 rider, and could refuse to renew the lease only upon proper notice during the window period before the next renewal expired.

Green Properties LLC v. Warr: NYLJ, p. 26, col. 3 (4/22/98) (Civ. Ct. NY; Shulman, J)