Tenant in 421-a Building Not Subject to Deregulation

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2016. Landlord advised the DHCR that the building was constructed after Jan. 1, 1974, and was rent stabilized because the building received 421-a tax benefits. But the 421-a benefits expired on June 30, 2014. The DRA asked landlord to submit copies of tenant's vacancy lease plus all renewal leases to confirm whether 421-a riders were included with those leases. The DRA ruled against landlord after landlord failed to submit the requested records.

Landlord appealed and lost. The Housing Stability and Tenant Protection Act of 2019 (HSTPA), effective June 14, 2019, repealed portions of the Rent Stabilization Law and Rent Stabilization Code relating to high-rent/high-income deregulation. So, for that reason, the DRA's order should be affirmed. In addition, the apartment became rent stabilized in 2004 solely as a condition of Real Property Tax Law (RPTL) Section 421-a. After July 3, 1984, units that became rent-regulated under 421-a were exempt from high-income rent deregulation upon expiration of the tax benefit. This is because RPTL Section 421-a(2)(f)(ii) makes no provision for high-income deregulation for units enjoying 421-a tax benefits after July 3, 1984. 

60 Street Development II, LLC: DHCR Adm. Rev. Docket No. HP410014RO (8/15/19) [3-pg. doc.]