Rent-Controlled Tenant Not Subject to Deregulation

Landlord applied for high-rent/high-income deregulation of tenant's rent-controlled apartment in 2008. The DRA ruled for landlord after DTF records showed that tenant's household income was more than $175,000 during 2006 and 2007. Tenant appealed and won. Tenant showed that landlord obtained J-51 tax benefits for the building at some point after tenant moved in. Rent-controlled units aren't subject to luxury deregulation while J-51 benefits are in effect. In addition, rent control regulations contain no provision for the resumption of high-rent/high-income deregulation after the J-51 benefits expire. Landlord's application must be dismissed.

Berk: DHCR Adm. Rev. Docket No. YL420051RT (10/26/11) [4-pg. doc.]