Rent-Controlled Tenant Not Subject to Deregulation After J-51 Benefits End

Landlord applied for high-rent/high-income deregulation of tenant’s rent-controlled apartment in 2016. The DRA ruled against landlord because, as a matter of law, the apartment remained exempt from high-rent/high-income deregulation after J-51 tax benefits expired. Landlord appealed and lost. In the case of RAM I LLC v. DHCR, the First Department appeals court had ruled that the governing statute concerning the effect of J-51 benefit expiration was different for rent-controlled and rent-stabilized tenants. Under Rent Control Law Section 26-403(e)(2)(j), high-income rent deregulation exemption from rent control isn’t available for apartments in buildings that had received J-51 benefits.

Regina Metropolitan Co. LLC: DHCR Adm. Rev. Docket No. ES420026RO (1/4/17) [4-pg. doc.]