Rent Overcharge Resulted from Improper Deregulation While Building Under J-51

Tenant sued landlord, claiming that his apartment was improperly deregulated while the building received J-51 tax benefits. Tenant also claimed rent overcharge. The court ruled for tenant in part. Tenant's apartment was rent stabilized, and there was a rent overcharge since prior landlord had raised the rent to market rent when the unit rent went over the $2,000 luxury deregulation threshold. But the rent increase didn't establish willful rent overcharge, since landlord reimbursed tenant for any rent overcharge, and the rent of the prior rent-stabilized tenant was used to calculate the legal rent and any overcharge. So the court didn't assess triple damages against landlord.

Ferentinos v. CF E 88 LLC: 2018 NY Slip Op 33247 (U), NYLJ No. 1545895428 (Sup. Ct. NY; 12/14/18; Cohen, J)